Freight Forwarding Trends 2024: Things to Expect in the Industry

Trends come and go, and the same is true with the freight forwarding industry. Its constant evolution is shaped by technological advancements, global economic shifts, and changes in consumer behavior—something to always look out for.

As we step into a new year, several leanings are poised to redefine the landscape of freight forwarding trends in 2024.

From digital transformation to sustainability initiatives, these are not only reshaping the industry but also providing opportunities for innovation and efficiency.

freight forwarding

Freight Forwarding Trends of 2024

Take, for example, the current consumer behavior that boomed during the pandemic—online purchasing. This is one good reason and factor in predicting the industry trend for the coming years.

Businesses need to stay ahead and learn from this developing habit of consumers and also to take good care of their supply and its flow.

Counting the days to 2024, here are some of the things to expect in the freight forwarding industry:

1. Digital Transformation and Automation

In 2024, the freight forwarding industry is experiencing a significant digital transformation.

Automation technologies, such as robotic process automation (RPA) and artificial intelligence (AI), streamline processes, reduce errors, and enhance overall efficiency. Automated booking systems, real-time tracking, and predictive analytics are becoming the norm, empowering freight forwarders to make data-driven decisions and optimize supply chain operations.

2. Blockchain Integration for Enhanced Security

Blockchain technology is gaining traction in the freight forwarding sector, offering enhanced security, transparency, and traceability.

By implementing blockchain, an international freight forwarding company can address key challenges such as documentation errors, fraud prevention, and real-time visibility across the supply chain.

Smart contracts within blockchain systems enable the automated execution of agreements, minimizing delays and disputes.

3. Real-time Tracking and Visibility

In 2024, real-time tracking and visibility have become essential components of freight forwarding.

Advanced tracking technologies, including Internet of Things (IoT) devices and sensors, enable shippers and logistics providers to monitor the location and condition of goods in transit.

This level of transparency not only enhances customer satisfaction but also allows for proactive problem-solving and risk management.

4. Eco-friendly Initiatives and Sustainable Practices

Sustainability is no longer a choice but a necessity in the freight forwarding industry.

With increasing awareness of environmental issues, companies are adopting eco-friendly initiatives to reduce their carbon footprint.

Electric vehicles, alternative fuels, and optimized routing for fuel efficiency are some of the sustainable practices gaining momentum in 2024.

Freight forwarders are not only meeting regulatory requirements but also aligning with the growing demand for environmentally conscious supply chain solutions.

5. Resilience Planning and Risk Management

Global events, such as the COVID-19 pandemic and geopolitical tensions, have underscored the importance of resilience planning in the freight forwarding industry.

In 2024, companies adhere to using a guide for international freight forwarding process to help prioritize risk management strategies and mitigate disruptions.

This includes diversifying supply chain sources, leveraging technology for scenario planning, and implementing flexible logistics solutions to adapt to unforeseen challenges.

6. Collaborative Platforms and Ecosystems

Collaboration is key in the evolving landscape of freight forwarding. Digital platforms and ecosystems are connecting various stakeholders in the supply chain, fostering communication and collaboration.

These platforms enable seamless information sharing, coordination, and optimization of resources, ultimately leading to more agile and responsive supply chains.

As we navigate through 2024, the freight forwarding industry is embracing a paradigm shift driven by digitalization, sustainability, and a commitment to resilience.

Companies that adapt to these trends will not only thrive in the current landscape but also position themselves as leaders in a future that demands innovation, efficiency, and a sustainable approach to global logistics.

The convergence of technology and a forward-thinking mindset is paving the way for a new era in freight forwarding.

To learn more, read these informative articles by Excelsior.

Tips When Working with a Freight Forwarder

How Currency Exchange Affects Freight Forwarding Costs

Tips when Working with a Freight Forwarder

Working with a freight forwarder international has been a crucial part of exporting products to various ports worldwide for many years. This allows exporters to have third-party support that can handle the consignments when they arrive at their destination. There are also freight forwarders that act as a customs brokerage firm as they assume responsibility for managing clearances on behalf of the shipper. 

However, despite being a vital part of the global trading process, many exporters fail to build a healthy working relationship with their international freight forwarding provider. This usually led to price fluctuations, delays in procurement, and details getting overlooked. A solid connection with a forwarder provides several benefits, including lower freight rates that shippers might not secure on their own. 

Here are some tips you can consider if you want to start partnering with an international freight forwarding company or improve your connection with them.

freight forwarder international

·         Ensure Proper Communication

The most crucial part of working with freight forwarders is ensuring effective communication throughout the shipping process. You can communicate your priorities and possible future projects to help the forwarders make the process more efficient. In addition, you can also communicate any potential negative experiences with previous forwarders, as it can help build a healthy relationship with your new freight forwarder. 

Communicating about the expectations, responsibilities, and projects will make the shipping process more manageable than usual. This will also allow both sides to collaborate on particular issues that might arise during transport. 

·         Pay On Time

One of the most significant issues faced by freight forwarders for years is late payments. This leads to them having problems paying their own vendors and creditors, which can further delay shipment. This is why exporters must pay on time, enabling them to have a good credit relationship with their freight forwarder. Payment overdue jeopardizes the entire shipping process and can lead to forwarders ending their relationship with the exporters. 

·         Avoid Cramming Shipments

Transporting shipments takes many things to be successful, which is why it is vital that you plan it in advance. Only giving yourself a few days to have the shipment out will lead to various complications. This includes difficulties in finding vessel space and shipment booking. This will also result in more expenditure due to delayed container use. 

·         Understand Export Compliance

Another crucial thing to do when exporting products is to ensure you properly understand the requirements to transport your product. For example, you must accurately classify what items you are shipping. You should also know the requirements when labeling the cargo and the paperwork required for your goods. This can help forwarders properly tender shipments and ensure they arrive at their destination without complications. 

·         Focus on Long-Term Goals

If you are looking to expand your business in the future, it is vital that you consider your freight forwarders as a part of your logistics team. You should not only see them as a third-party service that provides the lowest prices, as this can result in a challenging situation. Making them a part of your internal team will allow you to develop a healthy connection with them, helping you get competitive prices and faster transport speeds. 

Conclusion

With freight forwarding expected to be more crucial in the succeeding years, exporters must be able to find a freight forwarder that they’ll be confident working with for a long time. Building a healthy relationship can be a game-changer for many exporters, enabling them to reap several benefits that make shipping cost-effective and faster than usual. 

And if you are looking for the best freight forwarder in the Philippines for all your transport needs, then Excelsior Philippines is for you. We have been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. To learn about our services, contact us by visiting www.excelsior.ph/contact-us or calling (+632) 8525-9775. 

How Currency Exchange Affects Freight Forwarding Costs

Global trading has significantly grown in the past decade as more and more businesses and individuals rely on imports and exports to make money. Experts forecast that international trade will hit more than $32 trillion in 2022 as countless products from different industries are shipped across borders daily. 

And along with the positive development in global commerce is also the rise of the international forwarding industry. Numerous enterprises are now partnering with international freight forwarding companies to effortlessly transports their shipments to their destination. In addition, a freight forwarder can help companies tackle various factors that affect the shipping process, including the constant currency exchange rate fluctuation. 

What is Currency Exchange?

In its simplest form, the currency exchange rate refers to how much each currency is needed to be exchanged with one another. The US Dollars has always been the standard for currency exchange rates and holds the most daily shares with more than 88%. Currency rates are always considered floating as various factors affect them daily, including economic activity, GDP, and the supply and demand for different products. 

The continuous fluctuation of currency rates across the globe can result in shipping surcharges for companies. This makes freight forwarding invoices complicated for organizations to handle. Currency exchange rates affect various factors in how freight costs are calculated, and companies must know how to manage them to avoid massive financial losses in the long run. 

Impact on Freight Forwarding Costs

The primary currency used for freight costs is US dollars, and its value against other currencies can affect the overall shipping prices. Various things contribute to the total freight costs, and currency rates significantly affect whether the amount will increase or decrease. 

Varying Currency Exchange Rate 

The exchange rate in every nation is different, which can significantly impact freight costs. The amount needed to transport goods to one country differs considerably in other nations. Exports to a nation with a weaker currency than the US dollar are a little more expensive. This means that you need to adjust your budget. 

Tariffs

For decades, imports have been subject to taxes even before arriving at the destination port. Authorities do this to generate income and protect local producers, as imported items must be sold at a higher price. A specific percentage of the total value of the shipment usually calculates the tax to be paid. Stronger currency rates between the two nations decrease the overall cost of the freight and offset any increase in the tariff rate. 

Transaction Fees

Apart from tariffs, many exporters also pay different transaction fees based on how the shipment is delivered. The amount may fluctuate based on the currency value of where the importer or exporter is paying. Financial institutions implement foreign currency conversion and transaction fees, which a shift in the exchange rate can significantly impact. 

Conclusion

As global trade continues to expand, it is vital that businesses that rely on shipping understand the various factors that affect forwarding costs. One of which is the exchange rate, which significantly affects the overall shipping expenditures. Currency exchange rates adjust daily, and it can be tedious for importers and exporters to handle them. But partnering with a reputable logistics company can help them efficiently plan the needed amount for every freight. 

Excelsior Philippines, the country’s top freight forwarding and customs brokerage company, has been in the industry for more than two decades, providing our clients with peace of mind that their shipments will arrive at their destination safely. We can also help you negotiate freight charges for the best shipment value. To learn about our services, contact us now by clicking here or calling (+632) 8525-9775. 

International Freight Forwarding Trends for 2023

With the new year well underway, several enterprises are trying to do everything they can to keep up with the latest trends in their respective sectors. This includes every international freight forwarding company that will leverage new technologies to keep up with the ever-changing demands on how goods will be transported around the globe.

This year will bring unique challenges to the international freight forwarding industry. From the new COVID-19 outbreak in China, several geopolitical issues, and the continuous rise in prices, every freight forwarder international firm will need to adapt to changes to survive. To get ahead of the curve, learning about the possible trends in the industry can help freight forwarders become more flexible with their operations. 

Freight Forwarders to be More Prepared

There were many issues in 2022 that challenged the freight forwarding industry, such as the Russian-Ukrainian war, the Suez Canal obstruction, and the continual effects of the COVID-19 pandemic. These events resulted in a massive disruption in the global supply chain and firms suffering billions in losses. This year, international freight forwarders are expected to be readier when facing unexpected events disrupting the supply chain. 

Data collection and analysis have been more efficient in 2022, and freight forwarders are using this technology to make accurate predictions of what will happen in the next year. This will allow them to promote resiliency in their operations and be more agile, flexible, and visible in the market despite adverse situations.  

Mergers and Acquisitions will Continue 

The pandemic has brought growth and revenue to the transportation and logistics industry. This enticed various private equity firms looking to put their money into fast-growing sectors. And although mergers and acquisitions (M&A) slowed down recently, experts project that they will continue in 2023. 

The war in Ukraine, new COVID variants, equipment shortages, and supply chain disruptions resulted in some of the major players in the industry trying to acquire more businesses to leverage the supply chain. M&A will allow them to expand their services and potentially optimize the workforce.  

Sustainability will be a Key Goal for Forwarders 

A Sustainable Freight Buyers Alliance report said that freight transport is responsible for 8% of the world’s CO2 emissions. And this is projected to increase to 42% by 2050. To prevent this, freight forwarders can opt for more sustainable products and practices to help the logistics industry become more environmentally friendly. 

By asking for and buying products that are good for the environment, freight forwarders and shipping lines can help move the dial and reduce emissions. They can also promote green practices and technologies that can make the supply chain more efficient, effectively boosting sustainability in the sector. 

International Freight Forwarders Will Go Digital 

The logistics industry, like other fields, has also undergone a digital transformation in recent years. And in 2023, it is expected that more forwarders will use modern solutions to transport goods and reduce paperwork in the freight forwarding process. 

Freight forwarders can also measure supply and demand more accurately, improve efficiency, and automate simple tasks by transforming their operations. This will also allow their employees to work remotely, which is still seen as the norm this year.  

Conclusion

By keeping up with these trends, freight forwarders can stay competitive in the market despite various disruptions. This can also be an excellent opportunity for further growth and advancements in the field, allowing them to remain engaged in improving their services for their customers. 

If you are looking for the best freight forwarding company in the Philippines, then Excelsior is for you. With almost 20 years in the industry, you can guarantee that Excelsior has everything you need regarding logistics. Our mission is to ensure that your shipment will arrive at its destination safely.

If you have inquiries, contact us at (+632) 8525-9775 or email us at wecare@excelsior.ph. You can also visit our website for more information about our services. 

The Importance of Sustainability in the Shipping Sector

According to the World Bank, the international freight forwarding industry is responsible for 3% of the world’s total greenhouse gas emissions (GHG) annually. If no action is taken, the international freight forwarding industry will account for 17% of global GHG emissions by 2050. 

Every international freight forwarding company is responsible for these emissions, and sustainable transport is the biggest challenge for the shipping industry. Shipping is crucial for economic growth, helping nations move essential products to cater to the demand. Every logistics company in the Philippines, freight forwarding enterprise, and shipping company should do their best to make shipping sustainable. 

Here are some reasons why sustainability in the shipping industry is essential. 

Why is Sustainability Important in International Freight Forwarding?

Online e-commerce has grown exponentially since the pandemic, and the global shipping industry is needed now more than ever. Joining the fight against climate change is a way for the worldwide shipping industry to thrive more. Shipping companies choosing to continue their operations via sustainable means reduce environmental threats as they step towards green and sustainable shipping.

Sustainability is also the current trend when it comes to different transport industries. Automobile manufacturers have constantly been developing electric cars for the longest time. The aviation sector is also doing its part to reduce carbon dioxide emissions to the point where flights today generate 50% fewer emissions than flights in the 1990s. 

A sustainable shipping industry does not only reduce global carbon dioxide emissions. It also prevents oceans from having oil spills which can harm various organisms living in different water bodies and limit people’s access to clean water.  

How Can the Global Shipping Industry be More Sustainable?

Compliance with environmental regulations is one of the best ways to have a sustainable shipping industry in a country. Nations and businesses in the maritime world have agreed to comply with the global conservation goals of the following three decades set by the International Maritime Organization and the Sustainable Shipping Initiative

Creating a sustainable work environment can also promote sustainability in the sector. Making eco-friendly ports, switching to alternative fuels, and investing in green technologies can go a long way in fighting the rising global greenhouse emissions. Having a greener shipping environment also benefits the safety and trust of workers within the industry, enabling them to build more vital trust and transparency in the workplace. 

In addition, increasing vessel efficiency can also be a game changer for many international forwarding firms. They can do this by using cleaner ballast water, decreasing marine litter, using alternative fuel sources, and enhancing the ship recycling process. And when vessel efficiency is optimized, less carbon footprint is produced. 

Shipping Companies that Go Green

As economies rebuild after the negative impact of the COVID-19 pandemic, the shipping industry will continue to be an essential part of society. But various traditional practices in the sector have led to the rise of GHG emissions over the years, resulting in the need to adopt sustainable methods to protect the environment and workers in the industry. 

If you need a sustainable international freight forwarding company with exceptional service, Excelsior Worldwide Freight Logistics has been one of the leading shipping companies in the Philippines for almost 20 years. We provide freight services for land, sea, and air. Excelsior has everything you need regarding logistics, and our mission is to ensure that your shipment will arrive at its destination safely.

If you want to know more, call us at (+632) 8525-9775, email us at wecare@excelsior.ph, or message us through our contact page

Why are Fuel Costs High and How it Affects the Shipping Industry?

The Philippines is currently seeing high fuel prices, and the public transportation sector is currently reeling from the effects as drivers are forced to pay for expensive gas. Although rollbacks could happen in the future, it won’t change the fact that fuel costs are still high worldwide.

From regular commuters to international freight forwarding companies, many people are heavily affected by rising fuel costs that effectively increase gas prices, transportation rates, and shipping costs.

international freight forwarding companies

Why is Gas Expensive?

Increased Demand After Strict Lockdowns

The price for crude oil initially went up when the demand for oil and gas returned as the global economy emerged from strict COVID lockdowns. Both oil and gas prices went up as major economies reopened. Because the Philippines is a net oil importer, gas prices in the country will naturally go up when international oil prices spike.

According to the U.S. Energy Information Administration, the top five oil producers in the world in 2021 are the following:

  • United States – 18.88 million barrels per day or 20% of the world’s total
  • Saudi Arabia – 10.84 million barrels per day or 11% of the world’s total
  • Russia – 10.78 million barrels per day or 11% of the world’s total
  • Canada – 5.54 million barrels per day or 6% of the world’s total
  • China – 4.99 million barrels per day or 5% of the world’s total

These five countries contribute 53% of the total world oil production, and anything that can affect both the production and sale of these countries’ oil will affect the cost of oil. Since oil becomes fuel when refined, expensive oil will then become expensive gas.

While the initial oil and fuel price hike were because of the increased demand, the situation worsened thanks to the Ukraine war.

Russia’s Invasion of Ukraine Cut Down Oil Supply

Because Russia invaded Ukraine on February 24, 2022, the world responded with multiple sanctions to penalize Russia. Due to the sanctions imposed by the European Union, the United States, and other economies, Russia has been selling less oil in the market, resulting in lower supply and higher prices.

Europe started ditching Russian oil by reducing the amount of oil they buy from Russia while shopping around for alternative sources. Some countries still buy some Russian oil because they have become too dependent on it, making it hard to look for alternatives. Because there aren’t enough oil alternatives in the market due to oil producers winding down production, oil prices will remain high until Russian oil returns to the market.

As the war sees no sign of ending anytime soon, it’s unlikely that the global oil supply and prices will return to normal anytime soon.

Effects on the Freight Forwarding and Shipping Industry

Even before the Ukraine War, shipping operators in the Philippines had already imposed bunker fuel surcharges to recover from high fuel costs. Fuel accounts for a freight forwarder and shipping company’s operating costs, so they’re recovering the losses through surcharges. In fact, the Philippine Civil Aeronautics Board has already upgraded the passenger fuel surcharge to Level 4, which equates to P108 to P411 per passenger for one-way domestic flights and P543 to P5,026 per passenger for one-way international flights.

The current surcharge is Level 11, which equates to P355 to P1,038 per passenger for one-way domestic flights and P1,172.07 to P8,714.84 per passenger for one-way international flights. Cargo fuel surcharge is also Level 11, which equates to increases of P1.82 to P5.34 per kg for domestic flights and P6.03 to P44.80 per kg for international flights.

Adding the war in Ukraine to the equation, fuel prices will naturally go up. Philippine Multimodal Transport and Logistics Association, or PMTLAI, president Marilyn Alberto noted that trucking costs would continue to spiral as fuel costs continue to increase. International air freight forwarders in the European Union and the United Kingdom were barred from flying in Russian airspace, creating difficulties in going to East Asia, effectively increasing fuel consumption which then increases fuel cost and transit times.

Alberto said that even if the Philippines does not make any significant trade with Russia and Ukraine, the country will still feel the ripple effect of the following:

  • Higher fuel costs
  • Long transit times
  • Suspension of services
  • Delays due to inspections of cargo bound to Russia to comply with sanctions

The ripple effect increases air and ocean freight rates due to longer container routes, high fuel prices, and possible high surcharges.

Conclusion

The reopening of multiple economies increased the demand for fuel and oil, resulting in higher fuel costs. Both the Ukraine War and the ripple effect of lower oil supply and longer transit times also added to the already high fuel costs. The cost of international freight forwarding will remain high, and it will take time for it to go down. Even so, freight forwarders and logistics companies will continue to operate, and it’s more important than ever to rely on a reputable company.

Excelsior Worldwide Freight Logistics conducts free orientation for those willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at excelsior.ph to learn more about our service.

The Benefits of Outsourcing Logistics

Outsourcing logistics is a cost-effective strategy to expand your international reach and increase profits. The cost of hiring employees and renting storage space is typically lower than hosting operations in-house.

Outsourcing Logistics

Outsourcing Logistics Lessens Paperwork

Outsourcing also helps minimize the amount of paperwork, invoices, and inventory. You can focus on other aspects of your business, such as maximizing your business’s sales potential. Outsourcing also improves efficiency, which is critical for reducing costs.

Operational Benefits of Outsourcing Logistics

Aside from reducing operating costs, outsourcing logistics can also provide several strategic and operational benefits. For example, you can take advantage of a 3PL’s experience to negotiate better prices with domestic transport providers. These providers also have access to a variety of suppliers and can accommodate seasonal inventory changes. They can even accommodate seasonal inventory fluctuations. Furthermore, they have the resources and expertise to handle the complexities of supply chain management.

Outsourced Logistics Allows You to Focus More on Other Business Matters

By hiring a third party to handle your logistics, you can focus on developing your business instead of worrying about the day-to-day activities of the logistics department. It will free up your employees’ time to do more important tasks. Outsourcing logistics also allows you to focus on other aspects of your business, such as marketing. The results of outsourcing logistics are worth the extra cost. If you’re planning to grow your business in the future, outsourcing logistics may be the perfect solution for you.

Outsourced Logistics Saves More Money

The most obvious benefit of outsourcing logistics is cost savings. Outsourcing your business’ logistics to a third party will save you money and improve control and visibility of your company’s inventory and orders. It will also ensure that you get the best service for your money. When it comes to saving money, outsourcing your business’s operations to a third-party logistics provider is a great way to go. All of your staff can focus on running your business, leaving you free to focus on growing yours.

Outsourcing logistics can also reduce costs. Your team will have more time to focus on innovations, and you will no longer need to worry about managing a logistical department. By hiring a 3PL, you can focus on core business functions. Your team will be able to focus on these things, which means you’ll be able to focus on your logistics. You will be able to concentrate on your business and not worry about logistics.

Key Takeaways

Outsourcing logistics helps your company’s fulfillment process run more efficiently. Outsourcing your logistics to a third-party provider will free up your time to focus on other aspects of your business. You will also be able to save money by cutting operational expenses and investing in other areas of your business. You will be able to focus on your core business while you’re outsourcing your logistical operations. When you outsource logistics, you’ll have the freedom to concentrate on other aspects of your company.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

What is Transportation Management? What Every Enterprise Should Know– Infographic

Transportation management is a comprehensive discipline concerned with realizing the transportation requirements of an organization. This requires the systematic analysis of an organization’s transportation processes and systems and the identification of the key relationships among these processes and systems.

Freight Logistics

Transportation management system or TMS is a powerful software application that integrates multiple real-time systems and algorithms that align a business supply chain, logistics process flow, warehouse process modeling, linehaul express shipping, freight capacity planning, and off-loading.

With this software, the speed and efficiency of an organization’s transportation and warehousing activities can be improved through the collective efforts of the transportation and warehousing staff. In fact, real-time transportation and warehousing data can significantly improve the operational productivity of an organization.

A well-designed transportation management system can achieve this by reducing logistical errors, schedule delays, excessive over-crowding in the warehouses and delivery locations, and other factors that hinder the smooth flow of goods and materials. TMS can help in the:

Real-time inventory management – A major advantage of a truck and delivery tracking applications and TMS is that they provide real-time inventory reports of loads carried by vehicles in the system. These reports are used by trucking personnel to assess their routes, forecast their loads based on past performance, and plan for additional routes or route changes that help in optimizing fleet performance. In addition to this, the tracking of loads and other parameters provided by the software, such as route, time value of money, and fuel consumption of the vehicle, can also be useful for controlling costs. An example of the common usage of truck tracking reports is for companies involved in transporting hazardous waste. TMS can also track hazardous material shipments by alerting companies when specific routes or shipments are being used by the shipper, for example, for hazardous drugs.

Real-time information about the land and sea-borne freight – In today’s fast-changing and interconnected world, a company need not wait for shipment or cargo arrival time to evaluate the cargo status. Real-time information about the land and sea-borne freight in the system allows organizations to evaluate their inventories more efficiently. The information includes estimated unloaded weight, destination, and date of shipment, among others. Trucking companies can access and evaluate all this information through real-time tracking systems using GPS-enabled handheld devices.

Visibility and availability of resources – It is no longer enough to rely on paper records to monitor inventory, supply chain, and shipment status. Trucking and Logistics companies need to have access to real-time visibility and availability of personnel, trucks, resources, and vehicles. This is essential, especially during emergencies when supplies and services may be badly needed. TMS can also help minimize the impact of emergencies and other unexpected events on logistics operations and business. Trucking and Logistics companies need to have TMS applications that provide real-time visibility of resources. In addition, the system should allow for flexible scheduling of deliveries, route mapping, reroute management, and other activities.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

What You Need to Know About Port Congestion – Infographic

Port congestion is when a ship coming into a port for the express purpose of cargo or passenger operations is either unable to berth at the desired location or needs to wait for an opportunity for docking.

In such a case, there is no space for the ship to unload cargo, and therefore all operations stop. Port congestion is a major problem faced by most ports worldwide. It can occur for different reasons such as extreme weather conditions, shortage of fuel or diesel, breakdowns, etc.

To combat port congestion, ships are often required to call at sea or port to unload their cargo. However, this is not always possible, and therefore the only solution is to store the excess tonnage normally used on board and ensure that the ship has space available when called at sea.

Worldwide Freight Logistics

Why does Port Congestion Happen?

Increased fuel surcharges, stricter tankers rules, tougher security procedures, global events, and a tightening economy contribute to port congestion. Cargo that used to arrive at its specified time and date may now take longer due to weather concerns and extra time spent checking for illegal or dangerous material loads. Even smaller shippers can encounter extra time delays when shipping lines wait for their overseas carriers to return from a trip. These factors combine to cause congestion, especially when extra time is added to each shipment’s delivery date.

Port Congestion in the Philippines

With increasing international trade and immigration, the Philippines is experiencing port congestion. The burgeoning of container activities has resulted in a large build-up of material at sea and land in the country. A large portion of this build-up occurs at the main international port in Manila.

The rising population and increased traffic at the country’s ports have resulted in inefficiencies in its transport system – in which Manila has long been a major problem area. In some areas, there are physical problems caused by the number of ships and containers. In other areas, the inefficiency caused by inadequate infrastructure makes it difficult to use the existing ports to their fullest potential.

In addition to affecting the overall transport system of the country, port congestion has also affected the handling of goods. Many goods come by sea to the Philippines either by land to the larger cities or across the island on trucks. Businesses are affected when port congestion forces goods to be unloaded at each port and then transported to larger harbors. The delays caused by port congestion can affect an exporter’s profit schedule, making the whole exporters line more difficult than usual.

Preventing Port Congestion

The solutions provided by a global freight forwarding company can alleviate these problems. A company that can help an international trade broker better manage its supply chain can help them avoid common mistakes that can occur during port congestion.

Freight forwarding companies can also provide advice on the best way to streamline their operations and increase their ability to meet the demands of their customers. These experts can help ensure that the long-term viability of an international trade business is not put at risk due to short-sighted actions by shipping companies and brokers.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.

7 Factors that Influence Ocean Freight Rates – Infographic

Ocean freights are a lifeline for companies nowadays, especially for small and medium enterprises (SMEs) that engage in international business affairs. Without them, importing or exporting goods packed inside containers from one location to another is nearly impossible.

Besides, ocean freights are also a cost-efficient method, as a typical cargo ship can handle 18,000 containers at a time.  And that’s the reason why a logistics company in the Philippines and other related service providers gain popularity and is always on demand among companies that want to save money and assure that the customers’ orders will arrive on the exact date.

However, the cost of transporting goods isn’t constant, and it changes every time for varying reasons. Given such a fact, business owners and their companies should consider these different factors affecting ocean freight rates.

7 Factors that Influence Ocean Freight Rates-01

Container Route

The English Channel is said to be the busiest ocean freight route in the world. It serves as a passageway for more than 500 carriers each day, every year.

Before getting in touch with a logistics company in Manila, business owners should understand that if there is a high demand, the competition becomes more aggressive and it makes a particular route busier than usual. And this turn of events increases the price rate of transporting.

Currency

As the shipping fee covers all expenses, transporters like logistics freight in the Philippines need to pay attention to the exchange rate and the fluctuation factor during the transaction period to avoid delays at work.

We all know that countries have different currencies. Yet, in international transactions, the dollar serves as a common denominator. And this universal rule also applies to cargo shipment, as fuel value is always dollar-based. Also, the currency for port and operational charges also depends on the country where cargo ships will go.

Fuel Prices

Without fuel, maritime and land transportation won’t exist. Indeed, the availability of oil makes good transport possible. Yet, the ever-changing oil price affects the shipping fee of logistic companies. If there is an oil price spike, ocean freights service providers will pass the additional expenses to the company asking for shipment.

On the contrary, if fuel prices go down, there is the perfect opportunity for businesses to afford sea freights at a lower cost.

Additional Seasonal Charges

Sea carriers often apply extra seasonal charges if there is a high demand for them every year. Transporters may add Peak Season Surcharge (PSS) or congestion charges to their temporary overall ocean freight cost for transporting your goods.

Container Type and Size

Enterprises should know and understand that containers have different types and sizes, and their prices vary. Taller and larger containers cost bigger than their smaller counterparts. You may reduce the shipping fee by choosing the best container type and size fit for your goods, as well as secure them.

Space Availability

The cost of ocean freights also depends on the availability of space and equipment. During peak seasons, shipping companies use the high demand for shipment to wage their transport cost higher.

Terminal Service Charges

Shipping companies may apply charges to cover their expenses in processing containers from their origin and destination ports. Additional fees include labor fees, use of equipment, and limited time storage. Most importantly, terminal handling services are different in every country.

Transporting goods through ocean freights is a tricky task. Therefore, business owners should consider all the factors listed above to reduce costs and secure their cargo.

Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at excelsior.ph to learn more about our service.

Excelsior Worldwide Logistics Corp.