Freight Sense For Beginners: Shipping Simplified
Are you a newbie in the freight and shipping industry? Would you like safe, timely delivery of your cargo at a reduced cost and on time? Then, it would help to ensure that you cultivate the “freight sense”!
For starters, especially in these times where commodities never stop moving around, details of cargo and delivery are indispensable. Learning the fundamentals will also help save costs and ensure your goods are safe as they reach their destination in time as an enterprise or individual owner.
Shipping may be intricate and trying at times; however, this post will offer some tips to simplify it. You will find it helpful in selecting carriers, packaging and labeling items shipped, tracking and monitoring the movement of goods, freight insurance, and optimizing any business’s freight and shipping processes.
What is Freight and Shipping?
Freight is any goods, cargo, or commodities destined for shipment from one place to another. It comprises various goods ranging from small parcels to large machines. Trade keeps the market alive, while goods are commodities that facilitate movement from manufacturers to consumers.
Freight sense, however, also refers to an intuitive understanding of the basics of shipping and freight. It may also mean finding the best possible freight sense partner who can help you save time, money, and other hassles while delivering your goods, whether you’re into business operation as an owner, supplier, or even buyer of the goods.
Choosing the Right Freight Sense Partner
Selecting the appropriate freight carrier is one of the most essential decisions when transporting commodities. Several freight carriers are offering their products at various prices in the market.
For all these products, how do you pick the most suitable one for your specific case? You need to evaluate several factors when choosing a freight carrier, such as:
- Reliability: What is the regular frequency of timely and undamaged delivery from the carrier? Checking the carrier’s reputation includes reviewing their online feedback or rating or referring to past or present clients.
- Reputation: What are the satisfaction levels of the carriers’ customers on service and performance? Verifying a company’s credibility is possible by viewing its online reviews or feedback or seeking word from your colleagues and experts in the same industry.
- Safety: Does the carrier observe safety standards for that region? By checking the carrier’s website certificates, accreditation, or proof of compliance, you can tell if there have been accidents associated with them.
Packaging and Labeling Your Shipments
Proper packaging and labeling of your shipments protect your goods from damage, loss, or theft during transit. There should be standards in packaging and labeling of the freight to the level of the industry requirements and regulations.
Wrong packaging and labeling may lead to the rejection of shipments, additional costs for the company, or liability claims.
Here’s how you pack efficiently and securely:
- Use strong and hardy packing of boxes or packages that withhold the load of your products. Using something other than broken or used cartons/containers is advisable, which will affect the quality of your commodities.
- Use sufficient cushioning and padding materials to keep your goods from moving around or colliding. Refrain from packing your merchandise with newspaper or shredded papers since they can cause stains.
Tracking Your Shipment
Good shipment management allows you to trace, follow, and send it at the right time. With the proper tracking procedures and tools, you will know where your goods are and if they have reached their destination.
When your cargo is delayed, it facilitates following up on unexpected situations, such as planning, anticipation, and responding to emergencies.
One of these examples could be the GPS. This positional device works out the distance between you and your shipment by employing satellite signals. This location tracker lets you know where your shipment is, even when you are away from home.
Port freight tonnage decreased by 9% on a COVID-19 basis, as reported in 2022. It meant that international trade was hampered in the same manner.
But containerized maritime traffic rose 6% upwards compared with the second quarter of 2023. It illustrates a solid and favorable demand outlook. It is an essential factor that helps you promptly adjust to shifts in the business environment and customers’ needs.
Common Freight Challenges
The most challenging part regarding freight and shipping insurance is liability. Freight insurance prevents damage or even loss of products while transporting them.
Likewise, the same applies while selecting a policy or evaluating liability cover. Consequently, there will be no losses financially and legally when managing your products.
The World Trade Organisation reports that trade in goods increased by 9.5% in 2021 compared to 2020.
However, trade uncertainties, such as trade tensions, policy uncertainties, and supply chain disruptions, could slow down global trade growth in 2023 despite a predicted increase of about 4%.
Therefore, if your freight insurance and liability sides are well managed, it can help decrease the volatility and uncertainties.
Optimizing Your Freight and Shipping Processes
Conforming to critical principles in safely handling freight and cargo is essential for enhanced shipping process efficiency and cost-effectiveness. Best practices refer to time-tested approaches that work.
- Preplan and prebook your shipment. This action guarantees fair prices and availability of carriers at reasonable charges to avoid extra costs and delays.
- Make your load big, and combine your shipment. This way, you will reduce freight costs and increase load factors for each unit.
- Research and compare carriers and rates for the best deal. Hence, you will only pay for what is necessary and would have bought the most valued product.
McKinsey & Company estimates that digitalization can increase the value of services in logistics by as much as $1.5 trillion by 2025.
It means that in the digital era, only the companies that optimize their freight and shipping procedures stand a chance of survival.
Freight and shipping, as a starter, might be challenging to tackle. Freight sense for beginners is about awareness about different means of transport, appropriate packing and labeling, and challenges experienced with cross-border shipping.
Therefore, one should only choose a freight sense expert carrier that adheres to such regulations for better shipping of consignments. Shipping might be complex, but you will succeed knowing how to take over the logistics business world.