The World is undergoing a paradigm change. The growing intervention of technology across industries has motivated them to adopt technologies and methods to help remove any bottlenecks. Ocean freight shipping one of the most trusted and oldest ways of shipping across the border, has also changed.
While global trade has become a necessity in the modern world, navigating through the complexities of this industry forces daunting challenges in front of the logistic transportation companies. Adopting global shipping tracking tools and software makes it easier for ocean freight shipping companies to get real-time updates on sea cargo tracking.
As a business owner or logistics professional, it’s crucial to understand and avoid common pitfalls to ensure a smooth and efficient shipping process. This comprehensive guide will highlight ten important ocean freight shipping mistakes and provide actionable insights on how to avoid them. Thus, empowering shipping strategy and success in the competitive global marketplace.
Mistake 1: Inadequate Planning and Documentation
For any business to run smoothly, bright planning and documentation are paramount. This has become even more significant in ocean freight shipping. Before initiating the shipment, meticulous planning is a must. Lack of planning can result in penalties and delays. This eventually impacts the brand’s reputation and negatively influences consumer behavior.
Key Considerations for Planning
- Proper Documentation: Before letting out the shipment, it is necessary to have all the paperwork. Make sure to include the invoices, packing list, bill of land leading, and certificate of origin. Missing documents can impact global shipping and delays at customs.
- Accurate Product Classification: Classifying the product as per international trade regulations is equally significant. Proper classification ensures compliance and prevents delays.
- Shipping Schedule: The shippers must coordinate with the suppliers and freight forwarders to ensure realistic timelines for pick-up, loading, and departure. It helps in meeting the customer expectations. Also, it saves storage fees or demurrage charges.
Mistake 2: Inadequate Packaging and Cargo Protection
Packaging plays a very important role in the shipping business. Improper packing can damage the goods or sometimes result in a complete write-off.
Ensuring Effective Packaging
- Suitable Containers: Choosing a suitable container for the cargo is important to ensure durable packaging. You should consider factors like fragility, weight, and temperature sensitivity of the product before choosing the packaging. For example, if you are transporting perishable items, it is important to choose refrigerated containers.
- Secure Packaging: Proper packing and securing of goods prevents damage or breakage while the product transitions. Quality packaging materials, like sturdy pallets, boxes, and cushioning materials, ensure proper and secure packaging.
- Labeling and Documentation: Clear labeling of the packaging while handling C products is also important. For example, if you are transporting fragile goods, it is important to market on the packaging. Additionally, include detailed packing lists and instructions to ensure smooth customs clearance.
Mistake 3: Inaccurate Cargo Weight and Measurement
When shipping the products, every small aspect plays a significant role in ensuring the seamless movement of the goods. The shippers must accurately mention the weight and measurement of the cargo. Providing incomplete information can lead to extra charges or sometimes legal disputes.
Ensuring Accurate Cargo Details
- Weighing and Measuring: Use calibrated and certified scales and measuring equipment to obtain precise weight and measurement figures. Include the weight of packaging and pallets when determining the total weight.
- Unit Conversion: Pay attention to measurement units to avoid communication confusion or errors. Ensure consistency between metric and imperial systems, using conversions when necessary.
- Revised Cargo Details: Inform your freight forwarder or carrier promptly if there are any changes in cargo weight or dimensions. Timely communication helps prevent misallocations and facilitates proper load planning.
Mistake 4: Inadequate Insurance Coverage
Cargo insurance is pivotal. Companies failing to have this can face substantial financial loss in case of a natural disaster or theft. Hence, obtaining comprehensive insurance coverage is vital.
Ensuring Sufficient Insurance Protection
- Evaluate Risk Exposure: It is important to assess the risk of vulnerabilities encountered during shipping. Based on it, it will be easier to have appropriate insurance coverage. You can consider factors like potential risks, the nature of goods, and transit routes associated with specific regions.
- Insurance Options: always explore the different insurance options and their specifications. Understand the necessary terms, coverage limits, and exclusion. Only after a thorough analysis can we finalize the best option.
- Documentation: Make sure that you have accurate records of cargo, like packing lists, invoices, and photographs. These act as evidence for potential insurance claims.
Mistake 5: Neglecting Customs Compliance
Shipping companies need to consider the compliances and regulations pertaining to a particular shipment. Failing to adhere to these custom requirements can lead to significant delays and legal consequences.
Ensuring Customs Compliance
- Stay Informed: You should regularly monitor the changes and updates in the customs regulations. You can consult with custom brokers for this. Don’t miss to check out the online resources to get updates on the custom compliances.
- Correct Documentation: Completing all the custom-related documentation will ensure the seamless movement of goods. Also, make sure that you mention the product descriptions, values, and origin details for smoother custom clearance.
- Special Requirements: Getting acquainted with special preferences requirements like licenses or permits will ensure compliance with specific regulations.
Mistake 6: Poor Communication and Coordination
Pick of communication is one of the biggest hurdles in the seamless movement of goods. This also impacts ocean freight visibility. Poor communication can lead to delays and missed opportunities in business.
Facilitating Effective Communication
- Clear Instructions: It is important to provide clear instructions to the suppliers and freight forwarders regarding the moment of shipment. With the Internet of Things and GPS tracking, cargo tracking has become easier and simplified.
- Regular Updates: Regular communication with all the parties involved in the shipping ensure that everyone is on the same page regarding order status, schedule changes, or any other relevant information about the shipment.
- Problem Resolution: Every company should work on promptly resolving an issue. Encouraging open communication and collaboration results in swift and effective shipment movement.
Mistake 7: Inadequate Risk Management
Ocean freight shipping involves inherent risks like weather-related problems, accidents, and geopolitical factors. Failing to manage these risks can severely impact business productivity.
Implementing Risk Mitigation Strategies
- Route and Carrier Selection: Make sure you assess and compare the different shipping routes to mitigate the associated risk. Keeping a check on the geopolitical movement and other factors potentially impacting shipment movement can also help streamline the process.
- Supply Chain Visibility: Leveraging technologically advanced solutions like Blockchain, artificial intelligence, and predictive analytics can help enhance sea cargo tracking.
- Contingency Planning: A contingency plan to address potential disruptions can help overcome unexpected delays.
Mistake 8: Ignoring Environmental Sustainability
Today every organization, irrespective of its niche, focuses on sustainable business operations. Failing to adopt eco-friendly measures can negatively impact the productivity of an organization.
Adopting Sustainable Strategies
- Carbon Footprint Reduction: Exploring the different options that can reduce carbon footprint in shipping activities is paramount. Consider choosing eco-friendly measures like alternative fuel or carbon offset programs to initiate carbon footprint reduction.
- Packaging Optimization: One of the ways shipping companies can adopt eco-friendly practices is by choosing eco-friendly packaging material.
- Collaboration for Sustainability: Collaborate with suppliers and industry associations to promote sustainable solutions.
Mistake 9: Lack of Supply Chain Visibility
Real-time visibility is one of the key factors that every company must consider. Failing to adopt practices that can give real-time updates on the status and movement of shipments negatively impacts the business reputation and can trigger customer dissatisfaction.
Achieving Supply Chain Visibility
- Technology Adoption: It is important to adopt the right technologies that can help in real-time tracking of shipment and also identify bottlenecks.
- Collaborative Relationships: Fostering strong relationships with suppliers and freight forwarders and encouraging them to share data can help establish transparent communication.
- Data-driven Insights: Analyze supply chain data to identify patterns and optimize routes that can streamline the process.
Mistake 10: Neglecting Continuous Improvement
The shipping industry is highly dynamic, and failing to keep up with these changes can impact business productivity. Neglecting opportunities for growth and optimization can hinder competitiveness in the market.
Driving Continuous Improvement
- Performance Evaluation: Continuously evaluating the previous performance and customer feedback can help improve the business process.
- Benchmarking and Best Practices: Keeping current regarding industry trends and benchmarks can help adopt best practices that can trigger business productivity.
- Employee Training and Development: Regular workforce training on new technologies and innovation can help the organization meet customer demand.
Conclusion
The above highlights some of the mistakes committed by ocean freight shippers. Knowing the right ways of overcoming these mistakes can help streamline the shipping process. One of the ways to do so is to implement the right technology to automate the task. This will reduce the probability of errors and ensure compliance with the standard regulations.
About Cargologik
Cargologik is one of the trusted names providing outstanding and bespoke services in the shipping domain. The company emphasizes implementing cutting-edge technology to ensure real-time visibility of the shipment. Our experienced professionals are dedicated to delivering seamless logistics services tailored to your specific requirements.
