With global trade consistently increasing, there are an increasing number of businesses looking to ship their goods across continents using sea freight. Sea freight is one of the cheap and scalable means of shipping products. Sea freight is a paramount part of the overall supply chain. As demand grows and costs increase, on top of that the demand is inconsistent and has higher customer expectation with regards to customer service, companies must streamline & refine their operations.
This article explores the potential ways to improve cost control, shipment tracking & overall operational efficiencies when shipping sea freight.
Why Sea Freight is Still the Backbone of Global Trade
Even with the emergence of sea and land transportation, sea freight is still the best option to move affordably large quantities of commodities. No other mode of shipping is able to break the cost and moving bulk materials. Container ships can carry thousands of tons of goods all at once. That makes them the best option for sending bulk goods in high volume, all across the globe.
However, there are still some modulations to using ocean routes; such as transit time, potential congestion in ports, and regulatory customs procedures. Those costly outcomes help companies to develop smarter methods of operating.
Cost Controls: Managing Shipping Expenses
Any logistics manager’s largest problem is reducing transport costs. For sea freight, several cost control measures can prove useful:
1. Consolidation Services
By consolidating shipments with other shipments it allows companies to share container space and decrease their overall shipping costs. This can be quite effective when the size of the shipment is small to medium, as it would not be large enough to fill a container on its own.
2. Route Optimization
Selecting the most economical and fuel-efficient shipping routes has the potential to be a huge money maker. Sea freight ensures routes are selected based on fuel costs, transit time, and dependability.
3. Bargain with Carriers
Long-term carrier relationships may result in improved rates. Bulk contracts and volume pricing usually generate high discounts for frequent shippers.
4. Prevent Demurrage and Detention Charges
Effective coordination with ports and terminals guarantees the first-in, first-out pickup of the containers and timely delivery, saving extra costs that accumulate fast.
Tracking: Real-Time Visibility for Better Decisions
One of the biggest drawbacks of sea freight is visibility. With longer journey times than via air or land, it’s nice to know where your cargo is every step of the way. New tech has made real-time tracking faster and more reliable than ever.
1. GPS and IoT Devices
GPS and IoT devices are used for tracking your container location, temperature, and humidity.
2. Digital Platforms
Cloud platforms enable businesses to see shipments in real-time and get notified or alerted regarding potential delays. This enables proactive business decisions and better customer communication.
3. Predictive Analytics
Predictive analytics is used to predict arrival times depending on weather, port traffic, and shipping line data.
Efficiency: Maximizing Every Step of the Process
Sea freight efficiency is maximizing the use of assets and reducing delays. Below are ways companies can maximize operational efficiency:
1. Automated Documentation
Using an automated documentation process can help with bills of lading, and customs forms, so you can easily clear all paper works in ports.
2. Smart Container Loading
Use 3D modeling and software to maximize a container’s space. It leads to safer and more efficient packing with a reduced chance of damage and reduced shipping costs.
3. Port Synchronization
By working better with shipping lines, port authorities, and logistics organizations to reduce the idle time of containers waiting to be offloaded, and subsequently waiting to be delivered to the distribution centre.
4. Sustainability Focus
By implementing slower steaming (operating ships at a slower speed to conserve fuel) and also utilizing greener fuels, you can not only reduce your environmental footprint but, in the long term, save on your fuel costs.
Benefits of a Great Logistics Partner
Optimizing your ocean freight is not only reliant on your carrier and vendor, but also on a logistics partner that knows global regulations, has a global network of carriers, and can manage your unexpected delays. A logistics partner should be able to ease the friction between customs clearance, multi-modal connections, and final mile delivery, while simultaneously controlling your overall freight costs and improving your product flow.
Also Read>>How to Choose the Best Logistics Company for Your Needs in the UAE
Summary:
As global trade continues to grow, companies will find new ways of managing their sea freight activity. As companies continue to scale into larger, more globalized markets, control of cost and adoption of tracking technology, and process efficiencies will become paramount to remaining competitive. As a manufacturer, retailer, or distribution business, understanding the total process and addressing the optimization of your sea freight logistics management will be critical to your long-term sustainability.
Safe Box logistics is a sea freight management, customized shipping solutions, and full-service logistics partner, in your global business.
