The pandemic has changed a lot and brought a lot into the forefront. Issues that have always been small have now been put under a microscope and issues that never existed before are suddenly a huge problem. There is perhaps no place where this is truer than in the freight and logistics industry, which has been hit hard by staffing shortages, supply chain blockages, and COVID safety regulations that slow the whole process down.
Below are some common issues that have surfaced in the sea freight forwarding industry.
Rate instability
The cost of everything is becoming a problem across the board for various sectors and the sea freight industry is no different. Limited freight capacity, the constant fluctuation of shopping trends, equipment shortage, and other issues have caused shipping costs to skyrocket and this hasn’t been helped by inflation. It can be hard to accurate predict costs and revenue with so much fluctuation in the market.
The need for technology
For companies that have been slow to get on board with new freight technologies, these past few years have proven to be a real challenge. Companies that have not yet embraced digitization may find themselves backed into a corner as the need for software and automation becomes ever more pressing, cutting down the runway they have in their technology learning curve.
Technology such as software is a necessary and extremely useful tool, but only after it has been implemented and learned. Now, technology and digitization is a must-have for freight companies and many are being left behind. Implementing freight forwarding software to manage shipments and transportation will make a tremendous difference to say the least, perhaps their key to survival.
Materials shortage
There has been a shortage in virtually everything it seems at some point in the last few years, from raw materials even down to household toilet paper and pantry goods. The freight industry has been hit with a shortage of container storage which has been clogged by delays at ports, supply chain breakdowns, and differing COVID safety regulations that delay the flow.
To keep up with demand, suppliers have been rushing to produce the materials for more storage containers but the issue still isn’t resolved and will likely persist. The lack of guarantee of container storage can be a huge problem for freight companies. Monitoring shipments in real time helps tackle the shortfalls and allow for alternative measures to be taken. Efficiency and cost are key components with freight and shipping and having the technology to manage it, puts the forwarder at an advantage.
Additional Questions
How can freight forwarding software help?
While freight forwarding software can’t exactly solve global crises or predict them, it can make the humans at the helm aware of their effects. Freight forwarding software automates much of the administrative work and paperwork of the process allowing you to clearly and transparently see your operational costs and delays. This improves your ability and speed at which your company can adapt to changes in the market.
How much will freight forwarding software cost my company?
The important thing to remember is that this is an investment like anything else. You’re not paying for a luxury, you’re investing in the future of your business because the need for technology in the industry won’t be going away and anyone who stubbornly refuses to digitize will find themselves out of a job soon. Without automation and digitization, freight forwarders will drown in their shipments making it harder to survive until they can’t anymore.
With that said, different services have different rates, and each freight forwarder has different needs. There is typically an implementation fee followed by an annual maintenance fee.
For more than 35 years, CSA Software has been developing freight forwarding software for freight businesses all over the world. In order to thrive in this new climate of uncertainty, the benefits of customized freight forwarder software will amp up every aspect of your company’s performance.
Talk to a specialist at CSA Software today about freight forwarding solutions and schedule your Free Software Demo! You’ll be glad you did.