Many disruptions occur in global forwarding. From supply shortages, increased rates and fees, driver shortages, bottlenecks at ports, and lack of ships, each one affects the flow of the supply chain industry.
Global freight visibility in freight forwarding is a logistical way to communicate and provide transparency even during disruptions. It relies on logistics and technology to carry the business from point A to B. Providing real-time visibility gives everyone involved a clear window into all aspects of the business from port to the final destination. In addition, it allows companies and customers to track cargo at any transportation point, even during common and unpredictable disruptions.
38.7% of shippers book freight directly with the carrier under contract. Nearly one-fourth of shippers use a broker and 21.7% book freight with the carrier on the spot market. Only 15.3% book a digital freight platform or forwarder, states Talk Business. These statistics are shocking considering the advantages that digital freight forwarding provides. Take a look at the benefits of freight visibility and digital freight platforms and the disadvantages of the lack of visibility.
What Is Freight Visibility?
Freight visibility is the transparency into shipment’s real-time location, container moves, expected arrivals and departures, costs, and performance. This transparency keeps everyone involved up to date, even during disruptions, and aids in avoiding additional charges associated with disruptions.
Without clear visibility, freight forwarders will lose track of their cargo and supply chain. It also prevents the ability to estimate supply and demand, contributing to high operations and transit costs.
The Costs of Poor Freight Visibility
Poor freight visibility causes many problems and a trickle-down effect in the freight industry. The supply chain relies heavily on the ability to see what is happening in all avenues. Low freight visibility leads to higher costs, capacity with carriers and suppliers, inability to track performance, and poor customer experience.
According to Transport Dive, “Containers keep sitting at ports, and demurrage fees keep tallying up, not by choice but by the difficulty of retrieving them. This has caused a financial burden to all those in the industry…and shippers paid $71.56M in demurrage fees through POLA in February 2022.” The lack of freight visibility makes these issues significantly worse. When disruptions occur, multiple problems arise, leading to the inability for cargo to be loaded and unloaded within the agreed-upon time frame and causing these fees to accumulate. These are all results of poor visibility in freight forwarding.
How More Freight Visibility Improves Cost Savings.
Disruptions in the supply chain and freight forwarding create unwanted costs and consequences. There is a massive improvement in cost savings and customer satisfaction with clear freight visibility. Freight visibility allows shipping companies to provide real-time updates, arriving and departing cargo statuses, clear communication, and customer satisfaction.
According to Supply Chain Brain, “direct spend leaders realize two times stronger improvements in on-time, in full, time to market, cost reductions, and product shortages” when freight visibility is clear.” Unfortunately, visibility in freight forwarding is dire to the organization, structure, cost-effectiveness, and overall flourishment of the freight forwarding industry.
Increase Freight Visibility in Forwarding With Cargologik
Visibility in freight forwarding is beneficial in meeting market demand and maintaining customer satisfaction. While facing disruptions in the industry, there has never been a better time to implement real-time communication and improve cost savings with customers and employees. Logistics need digital freight platforms to stay proactive and efficient amidst volatility. Increase visibility in freight forwarding and sign up with Cargologik today.