Six Tips to Help You Compete in the Freight and Shipping Industry
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,
1) Take the global alliances for container shipping as an illustration.
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
3) Take the process of shipping as an example
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, here are six points of differentiation:
1) 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
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 Fre
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 and