How Logistics Providers Create Flexibility & Savings

As shipping and logistics weathers the global novel coronavirus (COVID-19) pandemic and consequential economic downturn, it’s still too early to forecast the next six months.

As noted in the previous Quarterly Forecast, this is a volatile market. 

Global shipping trade publication American Shipper reports several industry sectors were significantly affected:

• Volume Declines: 71%
• Transit Delays: 61%
• Delays From Port to Customer: 49%
• Capacity Shortages: 39%

Keeping these factors in mind, it’s even more vital to work with a freight forwarder and in-house customs broker to ensure safe and on-time shipments.

Freight forwarders provide shippers with added flexibility, customized service, and creative thinking, which translates into:

1. Cost Savings

Prior to COVID-19, shipping was already suffering from cost increases, blank sailings, production backlogs, and capacity reduction.

A freight forwarder with solid relationships can negotiate competitive carrier rates and provide skipped sailing contingencies.

2. Proper Documentation

It’s easy for important items to get lost such as bills of lading, certificates of origin, and letters of credit, among others. Unexpected delays can still derail the best-laid plans.

A freight forwarder with ocean carrier, air freight, and trucking company relationships can cohesively organize all your supply chain contracts.

3. Worldwide Connections

Whether you require assistance within your production country, or seek to transition from tariff-laden China, for example, an experienced, well-connected freight forwarder can help.

New relationships demand additional processes, such as quality-control inspections, production relocation, and skilled labor acquisition.

Freight forwarders provide these and other services, including cargo examination for quick and accurate shipments; priority loading space; and later cut-off times, for last-minute shipments. In-house customs brokerage also wields substantial leverage.

The preceding blog was excerpted in part from the CAF Quarterly Forecast. For additional insights, please complete the form below to download the full Q3 2020 edition.