Going into the 2024 bid season, logistics providers should be focused on outlining quarterly goals, winning new business, and renewing contracts. However, the industry faces unforeseen challenges threatening to disrupt these plans. Most recently, we’ve seen the logistics sector turned upside down by persistent attacks on freight vessels in the Red Sea as a result of the Israel-Palestine conflict.
Navigating the ocean freight challenges of 2024
With 30% of the world’s container trade going through the Suez, we know this conflict has a major impact across the industry. Not only are many shipments getting rerouted and delayed as shippers aim to reduce their risk, but rising fuel demand and labor costs are having knock-on effects throughout the supply chain.
This, coupled with ongoing droughts in the Panama Canal, is majorly driving down ocean freight capacity. Shippers are opting for alternate routes and modes of transportation, increasing demand (and in turn, rates) across air, road, and rail freight.
Now more than ever, shippers need a trustworthy partner to help them navigate an uncertain landscape. Moving freight from A to B is never as simple as it sounds, but especially when operating under rapidly changing conditions. To win and retain business in the midst of this conflict, it’s critical that forwarders leverage their resources to minimize impact for their customers.
The power of a digital experience
Staying ahead of geopolitical developments is crucial for freight forwarders and cargo owners alike. Monitoring global events with the ability to easily see shipments impacted in a matter of a few clicks allows cargo owners and forwarders to anticipate potential disruptions and provide strategic advice to minimize major delays.
Whether it’s advising on alternative shipping routes or suggesting adjustments to supply chain timelines, staying ahead of the curve allows freight forwarders to mitigate risks and safeguard their customers’ cargo and business needs.
At Logixboard, we’ve noticed increased demand for visibility capabilities among shippers during times like these. As digitally-enabled forwarders, I see a major opportunity to lean into this differentiator during the sales and renewal process.
Freight forwarders leveraging tracking systems and real-time data analytics can respond quickly to changing situations. This not only aids in rerouting shipments but also enhances transparency for clients, fostering trust and confidence in the face of uncertainty. Showcase your platform in early discussions to demonstrate that you’re not just selling them a service; you’re a true collaborator in their shipping process.
Finding opportunity in the storm
In times of unexpected obstacles, standing out as a logistics provider means leveraging available resources to provide customers with an unmatched experience. While we’re up against a difficult problem, we’re also seeing unprecedented demand for dependable partners who can provide guidance and visibility.
By presenting the tech and support that prospects can expect when they partner with you, you can show that you have what it takes to not only weather the storm, but also to emerge stronger and more resilient.
Got any thoughts or opinions you’d like to discuss? Connect with Jess on LinkedIn to continue the conversation.
