Maritime Shipping Problems Affecting Enterprise Shippers

Maritime Shipping Problems Affecting Enterprise Shippers

The world is passing through troubled and compelling times for the last couple of years. Global pandemics, political conflicts and economic turmoils are adversely affecting the industries. In the heart of transport, the global maritime shipping industry is also one of the victims of turbulence. Certainly, if the right steps are taken, the negative impacts can go down. But how exactly are the problems in maritime shipping affecting enterprise shippers? Let’s find out.

High Costs

Inflation and high freight rates have been frequently in the headlines of the maritime news for a long time. Since the year 2020, global freight rates have been swiftly multiplying. According to Xeneta’s Shipping Index (XSI), long term ocean box rates were up 150% on-year in May 2022. The initial dramatic increase in price was the result of the pandemic. However, even though the impressions of the pandemic and restrictions seem to be lowered, the prices are still high. Until 2023, by the look of things, freight rates remain at a high level.

High freight rates result in an increase in expenses from the logistic budget. Unfortunately, it is impossible to change the rates by action. However, with the help of efficient collaborations, reducing spending is possible too.

Delays on Shipments

Shipping always aims to be on time and precise yet in real life, things often do not go as they should be. Late shipments were always raising the devil yet after the beginning of the pandemic, the thing took a turn for the worse. Congestions became insupportable. Moreover, the expectations show that port congestion will worsen through 2022 peak. In a nutshell, port and terminal congestion will stay a problem in the long term.

Nevertheless, there are still some options to reduce the number of late shipments. The first and foremost is to make plans discriminatingly. For instance, if you work with China you always have to consider some parameters. China has the biggest ports, in the meantime, all the year-round restrictions and holidays such as Chinese New Year are determinative of the intensity. Before making plans, those variables should never be forgotten.

Also, using freight software that can forecast delivery times can be advantageous to avoid heavy traffic.

Lack of Flexibility

In the supply chain, low costs and an efficient supply chain is the primary objective yet the need for overwhelming efficiency led to the need for ultraprecision. However, the recent years were not helpful for the industry. The pandemic increased the risks. It is important to create a supply chain that can cope with crises but how?

Well, having extra stock and multiple carriers can help to minimize risks for as much as it can ensure efficiency. For good measure, integrating technology such as artificial intelligence to connect your supply chain can increase your abilities to solve problems.

Lack of Visibility

Lack of visibility has been always turbulent yet visibility to track in the industry is getting more and more harder. The reason? Because the global supply chain grows. Every single day, the number of ships, lanes, destinations, cargo and ports increases. Thus, tracking shipping data is becoming more and more compelling.

To overcome the lack of visibility, digital solutions are conceivable. Digital procurement platforms which are designed to manage freight sourcing are requisite to get better visibility into intended transport data. Also, digital procurement platforms are necessary because manual calculations are unreliable.

Environmental Regulations

Maritime shipping is infamous for its bad records against the environment yet it is on the verge of change. As a matter of fact, in its 125th session, The International Maritime Organization Council had chosen ‘new technologies for greener shipping’ as the World Maritime theme for 2022. 

The regulations are aiming to smother pollution, efficient and harmless fuel consumption and energy conservation. Liability is in the hands of enterprise shippers. Thus, it is necessary to keep up with environmental regulations. 

Technological Regulations

Maritime norms are changing. As we mentioned earlier, regulations make the industry divergent. Technological developments are again visible in the industry. However, those developments which make maritime less risky and more prepotent also led to regulations. Cyber security regulations are the most attention-grabbing and requisite. Professionals must always take into account the necessities and obligations that occur due to technological innovations.

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