Strategic supply chain planning and transition can help shippers navigate ongoing setbacks such as constant bank crossings, high prices, tariff wars, record delays, and the COVID-19 pandemic. Nationalshipperlist.com provides a list of shippers for freight brokers. The cost of coal increased a year ago; timber futures tripled to set a new record high, and steel continued to roll as soybeans and corn launched their rallies at the height of the Corona pandemic.
In 2020, shipping faced an economic downturn in the first half. Generally, the effects of the coronavirus have affected the entire trajectory of the industry. Freight brokers and logistics providers have faced two extremes in a short time.
During the first economic fallout after the pandemic, the mileage rate decreased and so did freight volumes. Loads were insufficient for people who made a living from transporting goods, which led to a rapid slowdown.
Although it sounds daunting, there is hope in the end. Air and sea freight rates are increasingly softening, demand is increasing and China is rebounding. Consumers are beginning to spend money on goods rather than entertainment and services.
Here are various trends affecting the shipping industry and how freight brokers can help:
• Industry adjustments
• Empty or skipped crossings have led to a significant shortage of ocean freight space in the industry.
• Carriers are boarding due to increased demand.
• Most carriers experienced a week or two of skipped crossings each month.
• The entire shipping industry has suffered financial losses related to the corona virus, including reduced capacity accompanied by high one-off onboard rates.
• Large blank sails
Although an expensive option compared to ocean freight, air freight is improving to reach pre-COVID-19 rates.
• Air freight rates have decreased due to the reopening of Europeans and North America
• Lack of adequate capacity forces carriers to scare brokers to upgrade passenger plans for freight
• It may take about five years to adjust to pre-2019 levels.
As the trends mentioned above continue, some sectors may recover faster than others.
Additional circumstances include:
• Carriers will encounter high demand, thus adjusting capacity and fares as they see fit to make a profit
• There are an increasing number of alternative production countries, including Bangladesh, India, Vietnam and Cambodia.
Freight brokers always strive for trusting and genuine relationships rather than transactional agreements. They tend to use these relationships to help manage the current crisis and any future tragedy that may arise.
Freight brokers should be a trusted and valued trucking capability and source of information in the marker for shippers. Building these relationships will improve industry efficiency by eliminating negotiations of brokers against each other and shippers trying to pit 3PLs against each other.
While shippers want freight moving, carriers are determined to see their loads move to keep operations afloat and pay the bills. At the same time, 3PLs and freight brokers remain the channel to bridge the needs of both parties.
When shippers were unable to find capacity and carriers could not secure loads at sustainable rates, the new role of freight brokers was defined. Freight brokers should strive to build relationships that improve the movement of goods while keeping the supply chain running smoothly. In this way, there will be a rebound in the supply chain.
Anything less than that is a step in the wrong direction. If you want a list of shippers for freight brokers, visit www.nationalshipperlist.com