There’s an increasing occurrence of disruptions impacting international shipping. You only need to watch the news to see that. 

Global events and incidents can lead to potential delays, increased costs and reputational damage for those trying to move goods around the world.

Freight forwarders are the line of defence against these issues. We work our magic to get things where they need to be. But how do we do that?

It’s all about efficient freight management.

What Causes Supply Chain Disruption

There is a whole host of things that can prevent goods from moving through the supply chain.

Natural Disasters

Floods, hurricanes, earthquakes, heatwaves… You name it, every natural disaster can have a profound impact on the movement of freight. Unsafe roads, oceans and weather events in the atmosphere can make the transport of goods via planes, trains, trucks and sea vessels difficult or impossible. 

Manmade Disasters

Road traffic accidents, warehouse fires and oil spills are examples of manmade disasters, and they can cause massive delays or damage to goods. 

Global Events

One word. Covid-19. The pandemic that began in 2020 is the perfect example of a global event that shook the freight world, with ramifications still being felt today. 

Political Instability

Heightened political instability poses a threat to global supply chains. Territorial disputes and conflict as well as piracy and sanctions can all cause problems and delay journeys. 

Infrastructure Issues

Infrastructure in the freight sector refers to things like docks, ports and airports and the equipment and vehicles that work together to support shipping movements. 

When there are problems with equipment or machinery, for example, loading and unloading can take much longer and cause huge disruption to global supply chains. 

Labour Disputes

Worker strikes reduce operational ability and have a massive effect on shipments moving around the globe. A wave of lorry driver strikes or port worker strikes can add pain points to trade routes, especially when combined with other risks we’ve mentioned. 

Economic Fluctuations

Recessions and economic downturns can cause consumers to pull back their spending, reducing the demand for shipping solutions and creating an excess of capacity. 

Poor Packaging

When you package goods incorrectly you risk them becoming damaged. Damaged goods could be rejected by your buyer, meaning you must spend time and money rectifying the issue. 

How A Freight Forwarder Can Mitigate Risk

Efficient freight management goes a long way to mitigating risks in freight forwarding. Here are some practices and processes forwarders utilise to get the job done.

Risk Analysis

Risk analysis is a process that identifies and evaluates any potential risks that might affect freight forwarding. These risks can be both recurrent, such as fluctuations in demand, and disruptive, like natural disasters.

The consequences of each risk and the likelihood of it happening are assessed and analysed, and forwarding solutions are chosen based on the data. Historical data is also taken into account, giving insight into industry trends, and expert opinions can also be useful. 

Technology

Technology that forecasts extreme weather enables freight forwarders to take precautions and adapt flexible solutions to meet clients’ shipping needs. This is just one way that technology enables freight forwarders to handle efficient freight management.  

Tracking Systems

Several types of tracking systems help freight forwarders keep track of shipments and impart up-to-date shipping information to clients. Real-time monitoring provides full visibility for shippers, allowing them to optimise their operations. 

RFID, or radiofrequency indication communication, uses small chips and different radio frequencies to transmit signals. Radio tracking is similar to RFID, but radio trackers can transmit a wider range of signals. Powerful GPS tracking solutions paired with intuitive dashboards are also a popular option. 

Network

Another way in which forwarders employ efficient freight management is down to their extensive network of alternative routes and carriers that can be used to form part of contingency plans.

Open Comms

Freight forwarders who work hard on open communication with parties involved in moving goods keep things simple. With trusting working relationships and effective comms, visibility is strong right from the off, and shipments are always traceable.  

Open comms are also crucial between the forwarder and their clients; having all relevant information at all times means forwarders can act accordingly in the face of incidents and events. 

How You Can Minimise Risk

As the shipper, you can also help work towards efficient freight management and minimise disruptions in your supply chain.

Paperwork

It’s not just damaged or lost goods that can be a risk to smooth supply chains. Delays can occur due to misfiled and incorrect paperwork.

All paperwork must be filled out correctly, clearly and with the right information. Know your Incoterms!

To prevent paperwork from being a blocker to efficient freight management, check and check again. 

Packaging

Properly packaged goods are safer goods. How you package your goods depends on the type of goods you’re preparing to ship, and you’ve got several combinations of packaging and packing materials to choose from. 

You can read all about how to prepare your cargo for shipping in this blog. 

Insurance

Word to the wise – get cargo insurance. Carrier liability is limited, and if your goods get thrown overboard in a storm, stolen, or lost in transit, you’ll likely be up against delays and hefty financial implications. 

Not sure whether to bother? Read our comprehensive blog on cargo insurance here. 

How To Choose The Right Freight Forwarder

When selecting your freight partner, you’ll hear all about how they can save you time and money when things go right, but knowing how they avoid issues and react when issues arise is just as important.

Here are some questions you can ask potential freight partners to make sure they’ll provide efficient freight management.

How Do You Manage Risks?

What precautions does the forwarder take to identify, assess and mitigate potential freight risks? 

Can I See Some Case Studies?

Reputable freight forwarders will have extensive experience in shipping goods of all kinds. They should have case studies to hand, or be able to provide detailed examples of their involvement with shipments.

Where Can I Find Your Company Reviews?

Checking out a freight forwarder’s website should lead you to find company reviews, but if you’re struggling, ask!

Can I Speak To A Client?

Another way of finding out what to expect from a customer experience point of view is to request to speak to past or current clients.

What Should I Do About Insurance?

Finding the right cargo insurance can be overwhelming, and freight forwarders can help. Ask them for their advice to check they have your best interests at heart; more often than not shippers themselves must insure their cargo against risk.

What Comms Can I Expect?

You won’t need to speak to your forwarder every day, but regular contact is important to help support efficient freight management. Managing expectations both ways when it comes to updates can make the whole process much smoother. 

Read our expert tips for effective communication here. 

Still Wondering How To Minimise Supply Chain Disruption?

There are things you, the shipper, can do to support efficient freight management behind the scenes. But for peace of mind and potential cost savings, partner with a freight forwarder that prioritises proactive risk management strategies. 

With access to a huge array of carriers and routes, expert knowledge and robust risk analysis practices, they can help you get your goods where they need to be.

Wondering if Millennium is the right forwarder for your shipping needs? Check out our website to get in touch today.