Freight transportation has always been a point of concern for international shipping. Any geopolitical changes across the globe impact international shipping of freight first and foremost. Reports suggest freight charges have skyrocketed to almost 5 times that in per-pandemic years. More recently, the Russia-Ukraine war has been another factor to impact fuel prices, and hence freight transportation costs are further hiked. But for the smooth functioning of international shipping, we must find ways to tackle these challenges. What Causes a Rise in Freight Rates? Before we jump on how to manage rising freight costs, let us first understand what factors impact freight rates directly or indirectly. For this, consider what details are required when you check for custom freight rates. They are mostly:
What Causes Delivery Delays? Global events are the most common cause of delayed deliveries. In recent times, the pandemic caused delays because of covid restrictions, travel bans, labor shortages, and port congestion. Events such as the blocking of the Suez Canal and the Russia-Ukraine war also forced the re-routing of several ships causing delivery delays across the world. These unforeseen events disrupt the entire logistics industry and need quick resolutions to mitigate losses and incidents of poor customer satisfaction. The recent uprising demands for quicker deliveries are adding further pressure on the logistics industry calling for quick resolutions. How to Manage Freight Rates Inflation & Delivery Delays In 2022? When it comes to managing the current price rise in international shipping of freight, and handling delivery delays here are a few suggestions that can help:
Cost & time efficiency matter the most in supply chains that are dependent on international shipping. Going through such disruptions is challenging. It requires quick and informed decision-making to avoid heavy losses. Since supply chain efficiencies are impacted by freight rates and delivery delays, hiring a logistics freight forwarder equipped with technology and industry know-how works as a great help in managing them. Partnering with efficient logistics partners that allow for custom freight tracking can curb the losses that occur due to such unforeseen circumstances.
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