Sea Freight is the most ancient and the most common way to transport bulk products from one country to another. With the advancement of the modern world, it increases its logistics system day by day. This rapid advancement comes with several challenges for logistics manager. These challenges are usually due to some factors like government policies, growth in demand and technological innovations mean. In this blog, we will discuss 3 common challenges of sea freight faced by Australian Logistics Managers and how to tackle them with a good service level. Additionally, Australia Freight Logistics that has decades of experience is announcing free consultancy on Sea Freight for start-up companies in Brisbane, Sydney, Victoria, and other Australia’s cities.
Unavailability of space during Peak Seasons
Every new year brings its nation-wide events and celebrations such as Christmas, Easter, Chinese New Year and other seasonal events that become the reason for congestion in sea freight. This congestion creates a capacity issue like limited space availability. And this limited space availability delays or even cancels the orders. However, the best way to avoid this problem is to be aware of congestion time and plan for it in advance. The advance plan will surely save logistics managers from any risk like delays.
A sudden Price Fluctuation
Sudden price fluctuation is not only due to the oil prices in sea freight but there are also some other factors involve such as General Rate Increase (GRI), Peak Season Surcharges (PSS), Bunker Adjustment Factor (BAF) and Port congestion charges (PCC). The main reason for these charges’ addition is due to the lack of experience and ambiguity in the shipping system. A responsible logistics manager should have enough knowledge to understand and create proper planning for these fluctuations. But for a start-up company, it is necessary to sign a contract with the shipping line or freight forwarder to avoid any fluctuation threat.
Lack of Transparency
Sea freight, no doubt, doesn’t have end-to-end visibility system through which a logistics manager can see multiple systems and processes of shipping and track his goods easily. This lack of transparency also creates frustration for both seller and buyer as if the products will be delivered on time or not. The best way to be updated for products is to collaborate with an Australian freight forwarder like Australia Freight Logistics. They will keep you updated all the time about the shipping progress.