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Understanding the Integration of Artificial Intelligence in the Freight Forwarding Industry

excelsior on January 6, 2025

The freight forwarding industry and global trade have significantly developed through the years with the benefit of technological advancement. This transformation is due to the integration of artificial intelligence (AI), which has revolutionized the operations of logistics companies.

The use of AI in international freight forwarding holds immense promise for companies around the world. This was also claimed by several studies stating that logistics firms will generate trillions per year in economic value in the next 20 years by applying AI to their processes.

The Use of AI in Freight Forwarding

AI technologies are being deployed in various ways within the freight forwarding sector, simplifying operations and delivering better solutions for the company’s operations. Here are the top applications of AI and how they affect the logistics industry:

Accurate Predictive Analytics

One of the most notable applications of AI is its predictive analytics. With AI algorithms, logistics companies in the Philippines can examine extensive amounts of data to predict demand, optimize the best times to ship goods and optimal routes to take, improve the supply chain, and foresee probable disruptions or delays, allowing companies to make proactive decisions.

Automated Decision-Making

AI can read vast amounts of data and quickly create decisions that would typically require human intervention. In freight forwarding, this includes automating the preference of carriers, routes, and shipping methods based on price, speed, and dependability. This status of automation lowers the risk of human error and increases operational efficiency.

Route Optimization

With AI, logistics businesses can optimize routes by analyzing real-time traffic conditions and weather patterns. AI-driven tools can identify the most efficient paths for shipments. For an international freight forwarding company, AI can optimize routes for both domestic and international shipments, making the entire process smoother.

Customer Service

AI is also altering the way logistics companies interact with customers. AI-powered bots can manage inquiries, provide real-time tracking updates, and assist with bookings. This automation enhances customer satisfaction by offering quicker responses and reducing the strain on human customer service agents.

Benefits of AI in Freight Forwarding

The integration of AI in the freight forwarding industry offers key benefits that contribute to the overall improvement of the logistics sector.

  1. Increased Efficiency and Productivity. AI automates repetitive tasks and optimizes operations, allowing companies to concentrate on more crucial aspects of the business. This results in faster processing times, reduced human error, and a more streamlined supply chain.
  2. Cost Reduction.  AI helps logistics companies reduce operational costs. For logistics companies in the Philippines, AI can lead to substantial savings by minimizing fuel consumption, lessening delays, and controlling unnecessary expenditures.
  3. Improved Accuracy. AI can interpret large datasets with greater precision than humans, leading to fewer mistakes. This is beneficial in areas like inventory management, documentation, and shipment tracking, where minor errors can result in disruptions.
  4. Better Customer Experience. AI-powered customer service tools like chatbots, real-time monitoring, and predictive notifications provide customers with timely information and seamless interactions. This level of transparency and efficiency effectively improves customer satisfaction, making companies more competitive in the market.

Downfalls of AI Integration

Despite multiple benefits, the integration of AI in the freight forwarding industry comes with a ton of challenges:

  1. High Initial Investment. Implementing AI technology can require significant upfront investment in infrastructure, software, and training. This can be a burden for small and medium-sized freight forwarders, where budget constraints may exist.
  2. Data Privacy and Security Concerns. AI systems are directed to function, guaranteeing the privacy and security of sensitive customer information becomes critical. Companies must comply with data protection regulations and invest in potent cybersecurity measures to mitigate the risks of data breaches.
  3. Integration with Legacy Systems. Many logistics companies still rely on traditional systems and processes that may not be compatible with AI technologies. Integrating AI can be complex and time-consuming, as it often requires massive modifications and upgrades to existing infrastructure.
  4. Skilled Labor Shortage. The implementation and maintenance of AI systems require experts in data science and AI. There is frequently a shortage of professionals in these fields, which may slow down the integration process.

Final Thoughts: The Potential of AI in Freight Forwarding

As AI technologies continue to progress, the opportunities for logistics companies to improve their freight forwarding process and operations, customer service, and profitability will expand further. Future advancements in AI could lead to more refined automation, deductions in operational costs, and even more innovative decision-making capabilities.

More so, AI presents an opportunity to enhance their competitiveness on the global stage. By implementing AI, these companies can improve their operations, reduce freight forwarding costs, and deliver faster services, helping them thrive in the digital world of logistics. Hence, the integration of AI in the freight forwarding industry is not just a trend but a crucial growth for the sector. With its prospect to drive efficiency, reduce costs, and enhance customer satisfaction, AI will continue to shape the future of logistics.

Understanding the Integration of Artificial Intelligence in the Freight Forwarding Industry! Infographic Image 00234

Break Bulk vs. Container Shipping: What is the Best Option for 2025?

excelsior on December 24, 2024

When it comes to international freight forwarding, it is adequate to understand the various methods of shipping goods, especially for businesses that are aiming to optimize their supply chain. Two of the most known methods in shipping are break bulk and container shipping, which play a robust role in guaranteeing safety and efficiency during cargo transport.

While both are integral to global trade, they vary significantly in some ways, such as what items are transported, the kind of products they regulate, and the logistics concerned. To better understand which is the best shipping option for 2025, here are the differences between the two.

What is Container Shipping?

Shipping containers are usually transported by ships, rail, road, or air. In this method, the items are loaded into secured containers that will be delivered from the point of origin to its destination port. Through container shipping, the item will either be transferred to another form of transport or will be directly delivered to the location.

Some advantages of operating container shipping are its flexibility to transport goods, be it on flatbeds or platform containers, efficiency in maximizing space to deter container imbalance, enhanced security against damage or theft, and streamlining the loading and unloading process. In this method, the items can be shipped in vast quantities, which is more acceptable when international shipping.

What is Break Bulk Shipping?

Break bulk shipping is the transport of cargo items without using standard containers. These goods are usually oversized, heavy, or irregularly shaped, making them unfit for container shipping. Instead, they are loaded straight onto the ship’s deck or into the break bulk cargo hold, occasionally requiring cranes, specialized equipment, or custom-built containers to facilitate the transportation.

More so, break bulk shipping has a more complex logistics setup, and it is more labor-intensive, requiring detailed planning to ensure that the cargo is loaded, secured, and transported without damage. It is commonly managed by professional freight forwarders, especially when goods need to be shipped to locations with restricted access or lack sufficient port infrastructure.

Differences Between Container and Break Bulk Shipping

Both shipping options have their different characteristics, making them beneficial when used in transporting goods. Here are the differences that you might want to consider as a shipping option for 2025:

Packaging and Handling

One of the most substantial differences between container and break bulk shipping is the way goods are packaged and handled. Container shipping relies on standardized containers, which can be quickly loaded and unloaded.

Meanwhile, break bulk shipping concerns handling individual items that may demand specific equipment or labor to load, unload, and secure. While cargo shipping is simplified, break bulk shipping is more time-consuming and expensive due to its intricacy.

Cargo’s Nature

Moreover, both shipping methods also differ in the type of goods or materials carried. Container shipping is best suited for items that are uniform in shape and size, such as electronics, clothing, and packaged goods. It’s ideal for businesses looking to ship products that fit well into standardized containers.

In contrast, break bulk cargo shipping is used for oversized, rare, or weighty cargo that cannot be accommodated in a container. Items such as construction materials, machinery, or large vehicles are generally transported using break bulk forms.

Cost Considerations

Container shipping is more cost-effective than break bulk shipping due to the standardized qualities of the process. Shipping containers are created to maximize space and lower costs. However, while considered as generally reducing expenses, its cost-efficiency depends on the volume and nature of goods.

Break bulk shipping, on the other hand, is pricier due to its more complicated logistics process, the need for manual labor, and custom solutions for securing and transporting goods.

Speed and Efficiency

When it comes to logistics trades, the operation of container shipping is faster due to its automated nature, preventing shipment delays. It is optimized for speed, with designated routes and ports that promote quick handling and minimal delays.

Break bulk shipping, however, is less efficient because of the extra time required to load and unload the cargo, especially if special equipment or labor is needed. This method is appropriate to use if the cargo is not time sensitive.

Port Infrastructure

Container shipping benefits from modern port facilities that are equipped to handle containers with minimal human intervention. Ports specializing in containerized shipping often have cranes and systems to manage large volumes of containers efficiently.

In breakbulk shipping, assessing the qualifications of ports is essential as it may require more facilities for loading and unloading cargo, which may not be suitable for all piers.

What’s the Best Shipping Method for Your Business in 2025?

When picking between container shipping and break bulk shipping, several factors need to be considered, such as the type of goods being shipped, the destination, budget constraints, and the required timeframe.

If you are a business looking to import or export large quantities of goods that are uniform and well-suited for containerization, cargo shipping is the best option for you. However, if you are transporting oversized or irregularly shaped products, break bulk shipping will likely be the more suitable choice despite the additional costs and time involved.

Container Shipping for 2025! Cover Image 0023

Final Thoughts

Understanding the differences between container and break bulk shipping is vital for businesses engaged in international trade. While container shipping is preferred for its efficiency and speed, breaking bulk is also necessary when shipping huge items. The choice of which shipping option to take is yours, depending on your needs.

By partnering with a reliable and skilled logistics company in the Philippines like Excelsior, businesses like you can acquire shipping tips, ensuring that your goods are transported with the most suitable method without any risks and obstacles on their way.

The Role of a Licensed Customs Broker in the Logistics Industry: A 2024-2025 Guide

excelsior on November 8, 2024

One factor contributing to the growth of the world economy is the logistics industry, which has been boosted when international freight forwarding becomes more relevant. In fact, the global logistics market was expected to elevate its value to 15.79 trillion in the year 2028.

While this growth has proved that importing and exporting goods are significant to the economy, the procedures have also become more intricate. Hence, hiring a licensed customs broker is vital. They serve as an intermediary to assist importers and exporters. They also provide services in acquiring and processing the documents and applications needed in international trade.

Licensed Customs Broker: The Bridge for Smooth International Shipping

A customs brokerage service processes importing and exporting applications. It oversees all customs-related transactions, including documentation, tax collections, and the importation and exportation of goods.  

A customs broker also enables importers and exporters understand the laws and requirements needed for shipping. They have become invaluable assets for companies as they have enough networks with shipping lines, freight forwarders, and trade authorities. This has led them to eliminate complexities in the international shipping process, making the clients’ shipment operations seamless.

The Roles of Licensed Customs Broker in the Logistics Chain

Below are the duties and roles of a licensed customs broker in logistics:

Dealing with Customs Transactions

For importers or exporters, the arduous process of transporting a product takes a lot of time. To lessen the time consumed in processing, customs brokers can help clients with their paperwork. This includes transferring documents needed for the customs department, reviewing, protecting, and clearing goods or supply chains, and processing the entire shipping process.

Fee Management

Broker customs also manage customs expenses. They calculate all the fees, duties, taxes, and expenses, which are then paid and delivered directly from the client’s account.

Client Representative

With customs brokerage, clients are represented when they need to engage with customs-related operations. A licensed customs broker usually deals with authorities and communicates with their clients about changes in regulations or the progress of procedures.

Customs Operations’ Documentation

Similar to freight forwarders, customs brokers are involved in record-keeping their clients’ confidential and necessary transaction records. They also monitor the shipping of goods to ensure their safe entry and arrival at the destination.

Why Hiring a Licensed Customs Broker Matters?

Working with a customs broker is crucial for businesses and shippers, as it hugely offers value in the logistic chain:

Lesser Expenses

In customs, specific software or hardware is required to automate the process, which can be costly for clients. But brokers already offer services using the latest technology to streamline goods shipping.

Proactive Shipment Solution

Items’ shipping occasionally causes undesirable delays due to unforeseen circumstances. A reliable customs broker can help clients deter conflicts and propose a solution. They are also knowledgeable in various customs regulations and have established connections with authorities, allowing them to accomplish logistics needs without problems.

Boost Sales

The efficient and streamlined service provided by licensed customs brokers in shipping a client’s goods opens a vast opportunity for business owners. Since most consumers want their products to be received in a short period, new markets will be reached, and more sales are most likely to boost.

Hassle-Free Shipment

Hiring brokers is a tremendous advantage for clients who strive to achieve a hassle-free customs transaction. These brokers are capable of handling operations in export and import-related matters. They can get things done fast and can ensure a smooth operation without letting the clients worry.

Searching for the Best Licensed Customs Broker

The logistics industry remains developing, and this transformation creates a more complex process. Dealing with the customs regulations and authorities takes time.

Therefore, the best solution to start faster and seamless shipping is to foster collaboration with licensed customs brokers from Excelsior. Excelsior is a logistics corporation that delivers high-quality shipping services. They can assist clients achieve a hassle-free logistics transaction, guaranteeing protection to their shipped goods to safely arrive at the right destination.

Read more:

Why are Customs Brokers Critical in Crises?

Why Your Business Needs a Licensed Customs Broker?

The Role of a Licensed Customs Broker in the Logistics Industry: A 2024-2025 Guide! Infographic Image 23242

How to Build Healthy Relationships with Customs Officials and Why It Matters?

excelsior on October 23, 2024

The ever-changing international freight forwarding market has become more significant, as it is expected to expand to $18.69 billion by the year 2026. While logistics has become an integral part of the world economy, the processes have also become more intricate in ensuring that shippers and customs brokers follow the regulations imposed.

Navigating complex operations, particularly in international shipping, requires extensive regulatory compliance and clearance processes to allow businesses, importers, and exporters to ship their goods successfully. This is why maintaining healthy and strong relationships and business partnerships with customs officials matters.

Establishing connections is a good strategy not to dodge the bullet in strict regulations but to create a streamlined process, faster transactions, and prevent miscommunication.

Here are some practical tips and strategies on how to build a positive and healthy relationship with customs officials:

Adhere to the Rules and Regulations

One of the most crucial steps in building healthy relationships with stakeholders and customs is understanding the enforcement regulations in shipping.

A shipper must be knowledgeable about the requirements, such as licenses, certificates, permits, and other documents that need to be presented before shipping. It is also essential to be well aware of the potential consequences and risks that might be acquired due to compliance failure.

Being informed of the rules and regulations in logistics reflects how professional and respectfula shipper is to the logistics industry officials. Being aware of the rules to follow also creates open communication with the customs officers, which prevents risks and violations.

Establish Proper Communication

The second step to maintaining a relationship with customs officials is to communicate clearly to ensure that trust, collaboration, and transparency will be created. This implies that it is vital to provide the correct information and data related to shipment to keep the customs well-advised.

For instance, your goods’ shipping details need to be changed. Hence, the first thing to do is inform the officials of those changes so they are aware and can provide assistance. This could also prevent misunderstandings and possible conflicts with the customs administrations when shipping your goods.

Stay Proactive

The next step in creating a good relationship with customs officials is to be proactive. Whenever you are planning to engage with a logistics company in the Philippines, it is important to anticipate potential disruptions, conflicts, and risks that may emerge.

Moreover, a business shall be prepared on how to deal with and adapt to such circumstances. Being proactive in engaging with logistics reflects a business’s responsibility and innovation in handling potential concerns.

Ask For Feedback and Recommendations

Securing connections with customs officials can be achieved by seeking their advice and feedback. This enables a business to enhance its performance and efficiency in handling shipments.

As customs officials have expertise in logistics, their opinions and recommendations matter in addressing concerns and potential disputes that might occur.

Seeking help and assistance from customs also restates a business’ dedication and willingness to achieve a conflict-free logistic process.

Apply What You Learn From the Customs

Lastly, one strategy to validate the customs officials’ effort in your logistic clearance and documentation is to apply what you have learned. This means that a business shall integrate its advice, such as using the best practices to improve its logistics process.

In return, it is fundamental to express recognition of their contributions to allow your business to be seamlessly processed.

Establishing contacts with customs can also strengthen a business’ competency, loyalty, and partnership with the officials.

How to Build Healthy Relationships with Customs Officials and Why It Matters? Cover Image 99845

Conclusion

As the logistics industry continues to evolve, having a good connection with customs officials matters a lot. It cannot only help a business ensure faster shipment processes and transactions but also allow the gaining of essential insights, advice, and tips to enhance a business’s shipment performance.

Fostering collaboration with customs officials may be an advantage for shippers and businesses, but it is critical to remember that maintaining this professional relationship is what matters most.

If you are too busy to deal with customs officials but need help keeping transaction records and documenting your freight forwarding process, a licensed customs broker from Excelsior can help. Excelsior is a logistics corporation that offers reliable shipping services worldwide. It can help clients track their shipments and ensure their safe arrival at their destination.

Read more:

Logistics Restrictions: List of Banned Products in the Philippines

excelsior on October 8, 2024

While logistics persist to thrive in the global economy, economic growth has also arisen. Logistics plays a powerful role in the global trade industry. It ensures the seamless flow of products and services, allows international shipping and economic integration, boosts the employment rate and operation of small businesses, enables reaching broader markets, and provides essential support in varying industries.

In the Philippines, the freight and logistics market is estimated to reach USD 25.38 billion by 2028 due to the massive growth of the e-commerce sector. As more people purchase products on different platforms online, the freight forwarding industry has become more in demand, as extensive amounts of goods are needed to import or export from suppliers to consumers.

However, countries like the Philippines have laws like Republic Act No. 10863, also known as the Customs Modernization and Tariff Act (CMTA), that restrict and ban the importation of specific items unless permitted by law or regulation.

To ensure the state of national security, order and morality, and environmental and public health protection, below is the list of  some Philippines’ banned and restricted imports:

Drug Substances

The CMTA prohibits the importation of any products containing marijuana, coca leaves, opium and other illicit drugs, narcotics, nicotine or synthetic drugs, tobacco, and other smokeable products. Also, importing items such as e-cigarettes, vape brands, e-liquids, and any drug paraphernalia that is utilized for taking or injecting drugs is banned. All these prohibited and regulated products will only be allowed by the Philippine administration once authorized by the Dangerous Drugs Board for medicinal purposes.

Firearms and Weapons

Unregistered products that could cause harm, such as knives, all sorts of guns, hand weapons, bullets, firearms, explosives, and related accessories used in war, dynamite, gunpowder, explosives, and other paraphernalia that could be mistaken as firearms, are prohibited. These items can only be imported once authorized by law.

Human Remains and Live Animals

Human remains, body parts, and fluids are banned from being imported into the Philippines. Meanwhile, live animals, insects, endangered, exotic, and domesticated species, or any of their parts, are also forbidden as they must adhere to laws and regulations in animal protection.

Gambling Materials and Apparatus

CMTA also refused to import goods such as gambling materials and apparatus. These included roulette wheels, pinball machines, mechanical devices used in gambling, cigarettes, marked cards, and gambling outfits.

Goods That Pose Threat to National Security

CMTA bans the importation of any products or goods, be they printed or written, that advocate treason, insurrection, rebellion, and sedition against the Philippine government. Further, written or printed goods that contain threats in any form, such as inflicting bodily harm and taking life upon any person in the Philippines, are also not allowed.

Adulterated Goods for Human Consumption

Importing misbranded items, such as food products or medicine, meant for human consumption is also prohibited in the Philippines as it could violate relevant laws and regulations. All goods intended for human consumption shall be authorized by regulatory agencies such as the Food and Drug Administration (FDA) and shall secure necessary documents, permits, licenses, and clearances.

Final Thoughts

Logistics plays an integral role in businesses and the global economy. As the logistics industry in the Philippines continues to grow, Philippine laws and regulations regarding the importation and exportation of products become more rigid. Unless approved and authorized by appropriate agencies, these items will remain on the list to ensure the integrity of morality, national security, and public health and safety.

If you are exploring relevant services that offer worldwide logistics, check out Excelsior now. We are a logistics enterprise that provides shipping and logistics services.

Discover more about the freight forwarding and logistics industry by reading these articles:

10 Shipping Tips for Small Businesses

Five Money-Saving Tips for Importers

Logistics Restrictions: List of Banned Products in the Philippines! Infographic Image 44435

Non-Vessel Operating Common Carrier vs Freight Forwarder: What Are the Differences?

excelsior on August 19, 2024

The global transportation of goods in the business landscape continues to pave the way to the development of the economy. Whilst breakbulk and international shipping do have complex logistics processes, the global logistics market is still forecasted to skyrocket to $18.69 billion in 2026.

Moreover, international shipping involves various services for a single transaction, including the Non-Vessel Operating Common Carrier (NVOCC) and Freight Forwarder, which are commonly mistaken to be similar in functions.

What Are NVOCCs?

NVOCC is an ocean carrier that provides transportation services to shippers without operating ships or its own vessels. Instead, NVOCC purchases space from vessel-operating common carriers and resells it to shippers. Further, NVOCC serves as the middleman in logistic services, particularly in transferring cargo.

Roles of NVOCCs

NVOCCs, though offering cost-effective shipping and low freight rates, offer varying functions in shipping:
 Cargo Consolidation

NVOCC delivers and receives cargo as carriers. They collect shipments from various sources to optimize container space and produce cost-efficient loads and flexible shipping options.

Documents Facilitator

NVOCCs process documents. They prepare the house bill of lading and paperwork concerning booking space for shipping lines and regulations. NVOCCs follow regulatory measures to ensure the legality of goods transportation and streamline the movement of commodities.

Rate Management

NVOCC’s other role is arranging payments for essential charges. Their company has access to international shipping routes in the global market. They set freight rates and shipping costs for shippers.

What is a Freight Forwarder?

Meanwhile, freight forwarders are experts and multi-functional operators. They facilitate the seamless movement of cargo, whether through rail, road, air, or ocean transportation. However, freight forwarders are the agents to shippers, only functions to arrange the transaction, not the ones to move the cargo.

Functions of Freight Forwarder

With the task of arranging and planning the logistics, freight forwarders have their primary roles in transportation services:

Logistics Planning

A freight forwarder plans the most cost-efficient route for shipping goods. They arrange customs clearance and cargo movements for local and international destinations and prepare documents for shipment activities. They also manage cargo consolidation by applying freight forwarding trends.

Customs Processing

Freight forwarders handle the paperwork when dealing with customs. They act as jacks of all trades, ensuring compliance with regulations and seamless shipping of international trade through proper cargo insurance and inventory management.

Handling and Negotiating of Contracts

On behalf of the exporters, they are the ones negotiating contracts with the carriers to ensure cost-efficient shipping deals. Freight forwarders can also issue the house bill of lading and facilitate their freight contract.

Main Differences Between NVOCC and Freight Forwarder

As service providers for shipping logistics, there are differences between NVOCCs and Freight Forwarders:

Relationship With Shippers

NVOCC serves as an intermediary between the shipper and vessel operator to conduct transport services. Meanwhile, freight forwarders collaborate directly with shippers to make decisions and plan the logistics process.

Primary Purpose

The exporters or importers defined NVOCC as a carrier to the shipper that works independently through third-party companies to support them. Besides, freight forwarders act as agents to shippers; they may also function as NVOCC’s agents.

Mode of Transportation

NVOCCs are mainly assigned for ocean transportation, which differs from freight forwarders, as the latter can offer different modes of freight transportation, whether through air, land, or ocean, for the buyers to monitor and control the commodities.

NVOCCs vs. Freight Forwarder: Choosing the Best Service Provider

To select the best service provider for transporting goods, whether it is an NVOCC or international freight forwarding company, it is essential to consider the following:

Level Of Service

Selecting between NVOCC and freight forwarder depends on the shipper’s needed service. For instance, there is only a need to book the transfer of goods in an ocean vessel, so NVOCC is an excellent choice for cost efficiency. Therefore, if a shipper needs guidance to identify the best route and rate for shipment as well, it is better to select a freight forwarder.

Best Freight Rates

When it comes to freight rates, it is recommended to choose NVOCC when there is a money constraint, as a shipper could save more fees. Compared to a freight forwarder, this agent will assist with the entire logistics process and services, which could be costly.

Conclusion
 Understanding the concept of different logistics services like NVOCC and freight forwarders is vital, especially when a shipper looks forward to streamlined commodity shipping. Both services may differ in crucial aspects but can ensure smooth and cost-efficient customs brokerage service for a positive logistics experience.

If you are looking for relevant services that offer freight forwarding and worldwide logistics, visit Excelsior, a logistics corporation that offers reliable shipping services.

Read these informative articles to learn more:

Non-Vessel Operating Common Carrier vs Freight Forwarder: What Are the Differences? Infographic Image 0000099

Container Congestion in Singapore: How It Affects Worldwide Logistics?

excelsior on July 30, 2024

Port congestion is considered the most compelling issue in the shipping industry today. It is a situation where ships experience backlogs while waiting to load or unload cargo due to overbooked capacity ports, leading container ships to berth instead.

This logistic concern has led to numerous concerns regarding supply chains, higher shipping costs, and major shipment delays.

In fact, Singapore, known as the world’s largest transshipment hub and the second-busiest port in 2023, is also exposed to and affected by container congestion, which disrupt operations and lead to lengthier transit times.

According to Chee Hong Tat, Singapore’s transport minister, the issue concerning Singapore port congestion has gotten worse as 90 percent of the container ships arrive off-schedule.

This Singapore congestion has been aggravated by the Red Sea Crisis, which prolonged the rerouting of vessels and ocean carriers between Asia and Europe and damaged global ocean shipping.

With this concern affecting not only Singapore but also worldwide logistics, various factors have been added to the list, which has generated huge impacts on the shipping industry and consumers.

Sources of Port Congestion

Weather Conditions

Severe weather conditions, like storms and rough seas, hinder the normal operations of shipping services. Given that cargoes and goods are transported out of the channel by sea, massive delays are possible, which could knock ports and customers off their feet.

Labor and Manpower Disputes

Port workers, such as truck drivers, dockworkers, port operators, and other staff members, are responsible for packing, unloading, document checking, cargo clearing, and cargo moving. Strikes, disputes, stoppages, and other job working conditions could limit and drastically slow down these services.

Poor Infrastructure and Equipment

Container congestion is largely caused when ports lack cargo handling equipment like chassis, and there is insufficient storage, container yards, and berths. Due to infrastructure deficiencies, major backlogs lead to the piling up of cargo and containers, which could lead to delays.

Demand Surges

The influx of imports and exports from the e-commerce market and platforms has become prevalent during the pandemic and continues to the present. The demand surges swamped the port’s capacity, causing service disruptions and container shipping traffic due to the large amounts of goods that needed to be transported.

Impacts of Singapore Congestion on Worldwide Logistics

Container Congestion in Singapore: How It Affects Worldwide Logistics? Infographic Image 0000008

Major Delays

As shipping operations have been halted due to container congestion, a domino effect could spread throughout logistics. A supply chain crisis could emerge and cause longer transit periods, backlogs, and delays in shipping schedules, which will directly impact the consignees and consumers.

Generates Extra Costs

When a ship stays longer in port, the higher the costs and the driving of inflation. Singapore container congestion will not just cause significant delays in deliveries; this will generate extra fees for the consumer due to increased billing for port services and fuel usage. Higher freight rates for shipping companies are also possible; hence, this could lead to congestion surcharges.

Lost Revenue for Businesses

A small delay could lead to a huge disturbance. Congestion could also impact small businesses, causing them to lose revenue and income due to inventory delays, production discontinuance, and missed sales due to customer unsatisfied remarks.

How to Deal With Singapore Port Congestion?

It is essential to illuminate potential solutions that could be applied to avoid Singapore port congestion and future delays.

Thorough Planning

Through intensive and streamlined planning, delays, shipping methods, production schedules, and supply chain operations would be seamlessly solved and anticipated, lessening the impact of congestion.

Enhancing Port Infrastructures

As the shipping industry becomes increasingly relevant, meeting the demands also means expanding and enhancing the needed infrastructure. Having a larger capacity of ports and sufficient containers, berths, and storage will limit congestion.

Diversifying Routes and Logistics Network

Optimizing routes and searching for alternative gateways with larger capacity and low congestion levels are necessary. Finding alternative transportation should also be considered to ensure prompt delivery and freight assistance. In this case, it is also essential to look for a freight forwarder with a vast logistics network to handle delays and shipping issues professionally.

Conclusion

Although PSA Singapore claims to deal with shipping lines and freight services to minimize container congestion, it is still necessary to be aware of how the shipping industry affects global logistics and how it should adapt amidst the rising issue of port congestion.

Learn more by reading these articles:

The Benefits of Outsourcing Logistics

excelsior on December 12, 2021

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.

Importance of Bill of Lading-Infographic

excelsior on July 31, 2020

The expansion of international trade for as early as the medieval times led to the development of a system to help merchants keep track of the conditions of goods, as well as to validate its time and location of loading. Over the course of history, this system of validation in the form of receipt has played a major role in the modern world of commerce and is now widely known as a bill of lading or BOL.

 

What is Bill of Lading?

Bill – refers to a written or printed statement indicating the cost of products or services delivered or to be delivered.

Lading – the action or process of putting cargo on a ship or vessel.

Understanding these two terms provide an overview of the actual definition of a bill of lading:

A document issued by a carrier that serves as a receipt for the cargo being shipped. It contains vital information about the goods, such as the type, quantity, and destination. In international trade, a bill of lading can be considered as a legal transportation contract acknowledging the agreement between the carrier and the shipper on movement and delivery of goods.

The Purpose of Bill of Lading

  • The bill of lading is an essential document that is used to certify that a contract has been made tocarry out a transportation service to a specific number of goods. Losing this receipt can mean a lot of trouble, especially for many businesses, as it can hinder the arrival of the products to its receiver.
    • The document also serves as a proof to confirm that the goods match the description listed on the paperwork, indicating its original condition before the transportation process.
    • The bill of lading can be used to identify the person who paid for the freight charges and customs fees, as well as the one responsible or liable for transferring the goods from the sender to the receiver.

    Common Details Listed on a Bill of Lading

    • Piece count (the total number of boxes, skids, or cartons to be delivered).
    • Description of the goods.
    • Shipper’s and consignee’s names together with addresses.
    • The date of the shipment.
    • The exact weight of the shipment.
    • Any special requirements for transportation and delivery.
    • Any instructions given by the shipper to guarantee safe and prompt delivery.
    • Account numbers for order tracking.

    Key Takeaways

    Transporting a large number of goods, especially for business purposes requires a bill of lading with accurate information to ensure a seamless process and keeping the ideal condition of the goods at the same time. For those who wanted to experience an organized issuance of bill of lading, it is recommended to seek the help of a Non-Vessel Operating Common Carrier (NVOCC).

    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.

     

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Ways of Preventing Shipment Delays

excelsior on June 15, 2020

Ways of Preventing Shipment Delays

Untimely arrival of shipment is perhaps one of the most common problems of businesses nowadays.  With the world currently facing the COVID-19 outbreak, supplies can deplete faster, and delayed shipments could result in poor customer service and wasted profit opportunities.

On the other hand, those who specialize in manufacturing are more likely to suffer from the effects of delayed shipment. Based on a study, around 62% of respondents believed that they are less likely to negotiate again with a supplier whose products were not delivered to them within the promised dates.

If you’re running an import/export business trying to transport your products with minimal to no delays, then here are some of the ways to do so.

Know the Cause of the Delay

The first step for preventing delayed shipment is through having an understanding of what causes the delay in the first place. This will enable you to prepare solutions the next time around.

Examples of scenario that are usually attributed to the untimely arrival of shipment include:

  • Bad Weather – Typhoons and even other forms of natural calamities are purely unavoidable, which make it the most tolerable cause of shipment delays.
  • Errors in Documentation – Any errors in documentation, such as the misspelling of the address, incorrect order forms, and incomplete information, can also lead to unnecessary late deliveries.
  • Package Redirection – A change in information, especially the address, can usually make a shipment be transferred in a different time of arrival.
  • Customs Delay – Customs authorities typically require a list of requirements before you can clear your shipment. Failure to submit these documents in time will guarantee a late shipment.

Practicing utmost care and planning ahead of time are the best measures that you can do to prevent any of these indicators from happening.

Make your Warehouse More Organized

Keep your warehouse well-organized, especially if you receive tons of orders every day. Arrange your products based on how popular they are, and make sure that the packages that you will transfer are all in a separate place so that they can be easier to find upon dispatching.

Utilize Logistics Software

Automation can be considered as one of the efficient ways of combating delayed shipment. However, you should take note that using software for managing logistics can prompt you to invest more money, as they can be quite expensive. But in case you don’t have enough resources to afford logistics software, you can still go for an alternative way. Formulate a step-by-step checklist that will guide your employees while doing logistics tasks.

Hire a Freight Forwarder or Customs Broker

Partnering with a freight forwarding agency or a customs broker in the Philippines comes with a lot of benefits, which include preventing any delays in your shipment. Since both professions are very knowledgeable in logistics, they can provide you some helpful advice of the best carrier company that will ensure the timely arrival of your goods. And if you have issues with your documents, a customs broker will surely help you clear everything up as they are very familiar with the process involving customs requirements.

If you want to know more about what freight forwarders and customs brokers do, check out the infographic here.

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.

Excelsior Worldwide Logistics Corp.