5 Tips to help you Compete in the Freight and Shipping Industry
Discover 5 valuable tips to elevate your business in the competitive freight and shipping industry.
The freight and shipping industry is a dynamic and ever-evolving sector that plays a crucial role in global commerce.
Competition is something that can either spur you on and make you better, or something that can bring you down. Every industry has competition in varying degrees. Some companies look at their competition and say, “Yeah ok, whatever” (think Google and Facebook). Other companies look at their competition and say, “Oh crap.
In this post, we will Learn how to optimize operations, improve customer service, leverage technology, and stay ahead of the competition. Implement these strategies to rise above challenges and achieve sustainable growth in this dynamic industry.
1. Invest in Sustainable Practices:
Sustainability is increasingly becoming a focal point for businesses across industries, including freight and shipping. Adopting eco-friendly practices not only aligns your company with global environmental goals but can also result in cost savings and improved public perception.
Explore options for fuel-efficient vehicles, implement recycling programs, and consider alternative energy sources. Demonstrating a commitment to sustainability can differentiate your business in the market and attract environmentally conscious customers.
When using the lines within the alliances, your cargo will be on the same boat (literally) Calling the same ports Takes the same time to get there Loads and discharges on the named day Follows the same route Experiences the same conditions or delays You may be paying more or less the same or similar freight rate +++ 2) Take the South African Container Rail Freight as an example Transnet Freight Rail (TFR) operates six major inland terminals and nineteen satellite depots that are strategically located across the country
2. Stay Informed and Adapt
The freight and shipping industry is subject to regulatory changes, economic fluctuations, and technological advancements. To stay competitive, it’s crucial to stay informed about industry trends and be prepared to adapt to evolving circumstances.
Regularly assess your business strategies, explore opportunities for innovation, and stay ahead of potential challenges. A proactive and adaptive approach will position your company as a leader in the dynamic and ever-changing landscape of the freight and shipping industry.
In the process of shipping, your cargo/shipment will
- Go through the same shipping, clearing and forwarding process
- Documents will pass through same authorities
- Same documents/permits will be issued
As you can see, there are many functions that are shared by shipping lines, intermodal operators, freight forwarders, and other service providers in the shipping and freight industry. You should ask yourself:
One of the tried-and-true strategies for competing in any industry is to DIFFERENTIATE. What exactly does it mean to differentiate or differentiate?
distinguish yourself in the freight and shipping industry Noun: the act or procedure of separating two things or people from one another.
To be precise: the act of evolving into something new through growth or development.
To help you compete in the shipping and freight industry:
Compete by Differentiating in Service While routing, transit, and ports may be common, one main factor that will set you apart from your competition and something that your customers look for is SERVICE. The pre-sales and after-sales service that you offer.
Make it easy to Deal with You As much as you think this is a basic requirement, something as basic as this is a “big” differentiator when it comes to customer service and customer contacts Am not sure how many of you struggle to find a simple telephone number Make your process unique Have a different approach to your client’s problem, don’t treat your customer as a number Show the unique benefits your client can enjoy by using you Differentiate your business model Give your customers a different business model that is not available in the market (like a 24-hour access point for any port/customs/transport queries) Offer value Whether it is a service or a product, customers are always looking for value in their purchase. Make it easy for the customer to deal with you. Compete.
The shipping container was designed by Malcom McLean and built by Keith Tantlinger in 1956. This innovation has helped bring the world closer together and made globalization a reality. Container shipping has increased from 56 TEUs in 1956 to 24,357,296 TEUs in 2021—a 43,495,100% increase in 65 years!!
Your goods travel too slowly by sea from China to Europe with intermodal freight trains. No problem; there is a novel idea for that called the Intermodal Freight Train. innovation in the shipping and freight industry – shipping and freight resource Learn more about the previous example here.
Automated Container Terminals Is manual productivity at container terminals too slow for you? Okay, here’s a new idea that will save you time and ensure productivity without the need for sick days or smoke breaks! Video Player 00:00 01:32 ULCVs Are the shipping costs per container too high for you as a shipping line? Automated Container Terminals To achieve economies of scale, how about we load a lot more containers onto a single ship?
The ships of Maersk Line, beginning with MRSK MC-KINNEY MLLER, commissioned in 2013 with a capacity of 18,270 TEUs, were widely regarded as the forerunners of the ULCVs (Ultra Large Container Vessel). The order book of ULCVs has grown dramatically since then, with all major players entering the fray to crown their ship as the largest container ship in the world. What started out as an effort to optimize on economy and efficiency.
With the unveiling of “HMM Algeciras,” their first 24,000 TEU containership, at a naming ceremony in Korea on April 23, 2020, HMM, the 9th largest container shipping line in the world, became the latest holder of the title of the largest container vessel on the planet.
largest container vessel in 2013 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 Shipping and Freight Resource Review 2019 How to Differentiate in the Shipping and Freight.
When it comes to shipping and freight, this type of differentiation doesn’t even require a sales department or sales person to secure business. In this day and age of depressed margins and revenue, everyone is looking to cut costs and what better way to get your shipping rates as cheap as possible. In spite of all of the above, and as much as one may seem better than the other to different people, the best way of competing would be to choose and combine all of the options available for you to differentiate and apply it strategically and selectively. Pricing How do I evaluate that?
If the difference is valuable and the change provides a benefit to the customer that is greater than the cost, it is important and the benefit it delivers contributes to your customer’s business success, is unique and offered in a distinctive and fresh manner, is better, quicker, and superior in terms of technological innovation, creates an emotion in your customer, like a quick and effective relief of their business pain, is accessible and affordable to the customers who may be willing to pay the extra, and last but not least, it is profitable for you.
3. Optimize Supply Chain Management
Efficient supply chain management is a cornerstone of success in the freight and shipping industry. Collaborate closely with suppliers, carriers, and other stakeholders to streamline processes and minimize delays. Consider adopting lean principles to eliminate unnecessary steps and reduce lead times. A well-optimized supply chain not only enhances operational efficiency but also helps in managing costs effectively, making your business more competitive in the market.
4. Prioritize Customer Experience
Customer satisfaction is paramount in any industry, and the freight and shipping sector is no exception. Establishing and maintaining strong relationships with clients can lead to repeat business and positive word-of-mouth referrals. Provide real-time tracking updates, offer flexible delivery options, and prioritize clear and effective communication. Additionally, actively seek and incorporate customer feedback to identify areas for improvement and demonstrate a commitment to continuous enhancement of your services.
5. Embrace Technological Advancements
In today’s fast-paced world, technology is a key driver of success in the freight and shipping industry. Embracing cutting-edge technologies can significantly enhance efficiency, reduce costs, and improve overall operational performance. Invest in state-of-the-art tracking and management systems, leverage data analytics to optimize routes and scheduling, and explore emerging technologies such as Internet of Things (IoT) devices and blockchain for enhanced transparency and security. By staying technologically savvy, your business can streamline processes and gain a competitive edge.
Competing in the freight and shipping industry requires a strategic and multifaceted approach. By embracing technology, prioritizing customer experience, optimizing supply chain management, investing in sustainability, and staying informed and adaptive, your business can navigate the challenges and capitalize on opportunities for success. In a rapidly evolving industry, those who are proactive in adopting best practices and staying ahead of the curve will undoubtedly find themselves at the helm of success.