The Challenges That The Shipping Supply Chain Might Face

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The Challenges That The Shipping Supply Chain Might Face
Sep 23, 2018

In all industries, mishaps are inevitable. There are challenges that each industry face but with the companies’ aim to succeed, alongside the palpable advancements in technologies, these challenges are often apprehended accordingly.

The industry of freight forwarding, for example, is now facing minor problems that if not solved immediately, can cause bigger difficulties in the future. And if you belong in this industry if you have your own freight forwarding company in Dubai,  it’s best to know the current and impending challenges that you might face along the way.

Capacity Cuts

Today, the main trade lanes are now experiencing capacity cuts due to the slowing of volumes. This is done in hopes of maintaining the freight rates at higher levels. This year, the freight volume has decreased compared to last year.

Freight Rates

Because of the varied market rates that change unpredictably, there are times when you will not be able to see long-term costs. It just changes depending on the market and it’s just a bit hard to guess what will go under your sleeves.

Trade Risks

The trade war at the present can actually change the industry in ways that no one can imagine. The overall performance of the industry might be affected like the shipment volumes, tariff, and costs.

Oil Prices

The freight rates are affected by the increasing oil prices and not just that, it also affects the ocean carrier’s cash flows. If only the supply and demand will be balanced, the increases will not affect the customers anymore.

Trucking shortages

Because of the demand, the problem with trucking rises. Cargo companies are affected by this. Also, depending on which season it is, the demand also increases, making the supply a bit of shorthanded.

Efficiency of Terminals

There are terminals that have a hard time calling and accommodating large vessels. Sometimes, consumers take days to have an appointment at a terminal.

As one of the leading freight forwarding companies, we, Logtrans, know of these issues because we know how to handle them well. As providers of freight services like storage facilities in Dubai, sea cargo, land transportation, and air freight, we know all the challenges that we may face and ready ourselves ever since we opened our doors to the public. Moreover, if you need any of our services, please feel free to call us anytime you require our assistance.