Freight & Shipping Delays

2020-2021 has been a challenging year for many businesses all around the world. While global trade has continued, the pandemic has caused changing buying habits and unpredictable demand, which has resulted in shipment delays. Now, you might ask yourself how long these delays will last and what you can do to ship your cargo on time. That’s why we have summarised the most important information for you.

What is the Status Quo in the shipping industry?

It has been a challenging year for the transport sector. During the closure in spring, it seemed like consumer demand in goods would decrease - today the challenge is different: shipping capacity is under pressure and freight prices are rising.

On top of that, vessels do not reach ports when scheduled, as they face longer waiting times to unload at the ports. This is described as port congestion – meaning that ships arrive at the port and cannot load or unload, as the port capacity is already full. So, they can only queue up and wait for their turn to get a spot at the port. To alleviate this situation, many ocean carriers are implementing new measures - for example by reducing the free time at the destinations, or sometimes missing out ports altogether and making alternative arrangements to deliver customers’ cargos to avoid overall delays.

What can you do to reduce logistics challenges?

We know that as an SME, you can’t wait forever for your cargo to be shipped. As Richard Bingham points out: “Many of our customers struggle with the delays and high prices they experience.” So, what do you need to do to overcome the current challenges?

We have summarised the most important steps you should take now to keep your cargo flowing:

Get in touch with your suppliers: Talk to them and see if they can deliver your cargo earlier or later than agreed if you are facing time constraints.

Reach out to business partners and customers: It is crucial to inform your business partners and customers about delays. As Martti Leitert, Country Manager DACH at Twill, outlines, you should now be “brave in making decisions”. He further recommends: “Talk to your partners and make them aware the pandemic is changing behaviours. Partners need to stand together in overcoming the transformation to a new consumer behaviour.”

Talk to your logistics service provider: Ask them for alternative routes - they are the experts in their field and will be able to help you out to avoid long waiting times in the next months. 

Consider an alternative transportation mix: The mode of transportation is an important consideration when planning your shipment – particularly right now. Besides the costs, the urgency of the shipment, the value of the goods being shipped as well as the size and weight of the goods need to be evaluated when determining the form of transportation.

Think ahead: Is your cargo not time-sensitive and does therefore not need to arrive urgently at its destination? Then pre-book your cargo now – with that you can add some buffer to your overall transportation timeline.

Find alternative ports: Check larger ports than the ones where you would normally load your cargo. There it will be easier to find available loading space for your freight.

Choose different container types: You might normally use 40-foot containers to transport your cargo. As the capacity constraints count especially for 40-foot containers, and 20-foot containers are mostly available, this might be another container type to consider for your cargo.

(From Twill)