How Coronavirus is Impacting Freight Shipping Today

The coronavirus pandemic has scrambled customer demand making times difficult for freight transportation and business shipping worldwide.  The transportation and logistics industry has stepped up in major ways to help get critical medical supplies and essential products to fulfill needs. Here is a look at how COVID-19 is currently impacting freight shipping so that you can adjust your business’s logistics strategy to be cost-effective.

Air and Ocean Freight

Ocean rates are higher and, longer lead and transit times have pushed companies to change from ocean to air freight, thus increasing air rates. This is especially noted with shipments from China to the US and Europe.  During the spring months, there was a steady fall in ocean freight shipment volumes.  However, since May there has been an incline that is continuing through the summer months as well. The air freights rates have increased.  As a business owner, you will want to evaluate if air or ocean is the better option for your budget and needs.

PPLUS Global is staying current with all the rates and trends.  They also have the expertise to evaluate the best options for your business strategy.

LTL and Truckload Shipping

Trucking volumes are continuing to increase.  As it is has proven to be a steady way to deliver goods within the U.S.  Trucking volumes have increased this year in comparison to last year.

The less than truckload (LTL) shipping has been consistent, and carriers are trying to keep pricing and operating at the same rates.

How to Navigate the Current Overseas Freight Shipping Market

While the situation is unpredictable, there are steps that you can take to help make sure your freight gets to its destination.

• Compare Transportation Options – While in the past, air may have been your best option, with the change in rates you may want to compare all options to find the best choice going forward.
• Planning – Having a strategy and planning ahead will give you more options.
• Think Ocean When Possible – Airlines are still flying cargo planes, however, prices are high, so if your product’s lead time allows it, ocean might be a more cost-effective choice.
• Buffer Your Fright Budget and Transit Time – Costs due to unforeseen delays or limited capacity can occur, so be prepared.
• Warehousing Options – Look into warehousing options, if needed, due to the lowered demand and business restrictions in the U.S.
• Freight Costs and Profitability – Factor in freight costs when assessing profitability, and the current trends in sales demands.

Operational Success

• Communicate Regularly with Vendors – Staying in touch with your logistics provider will allow you to stay on top of any changes and transit times.
• Consider Which Shipping Mode is Best – Stay up to date with all shipping modes, ocean, air, and land. You may need to use a different mode than previously to keep costs down.  Consider alternative solutions like intermodal.
• Staffing and Manpower – Make sure that you have the manpower to accept your goods at arrival, this will minimize delays.
• Understand Delays and Charges – Additional charges can occur due to the unstable period.

Working with an Experienced Logistics Provider

One of the best ways to get the best rates and on-time deliveries is to work with an established logistics provider.  They work with a variety of carriers and understand all the options.   They can help you pick the best mode of transportation and ensure your profitability.  PPLUS Global understands accessorial charges that can occur with inaccurate paperwork and other errors.  We will advise you on all aspects to keep your shipping cost-effective and arrive at its final destination.  PPLUS Global is a leader with the resources to help your company shine with your customers and get you the most cost-effective solutions.  Give us a call today.