On the customer-end of the freight and logistics industry, setting your expectations straight will be the top priority of making necessary adjustments in 2022 and beyond.
- How to Beat Shipping Delays
- Industry Challenges in 2022 (and Beyond)
- Sustainability Expectations: Lowering Carbon Emissions and Costs
1. How to Beat Shipping Delays
Here are some ways you can try and beat shipping costs:
- Request to have your product shipped via air freight (if possible).
- Have your order delivered to a storefront location (such as UPS or FedEx store).
- If possible, order your product directly from the manufacturer if it’s nearby your location.
Your order will ship out faster and reach you just as quickly for transitioning to air freight. But as a trade-off, you can also expect to pay more for such fast servicing. If you don’t anticipate needing to return the product, this may be a good option for your to do if you have extra disposable income to utilize.
It’s also no secret that transitioning your products to be delivered at a storefront location, such as a UPS or FedEx physical store location, can also be a viable option for you to receive your product. This may also be a viable option if you don’t have a physical address. If you’re always traveling, this can also help you receive a package if you anticipate being in a particular city at a specific time.
Lastly, due to the above issues, some companies have transitioned their manufacturing location(s) and partnered with other manufacturers in different countries closer to where their customers are located. For your sake, this has provided a more significant opportunity for you to order your products with potentially lower purchase prices and quicker arrival times.
2. Industry Challenges in 2022 (and Beyond)
As shared by Luna Sun from the China Macro Economy, she spotlighted the reasons for shipping costs rising. Sun reported her findings from the Review of Maritime Transport 2021, as published by the United Nations Conference on Trade and Development (UNCTAD).
In her words, “The surge in freight rates and associated costs are largely the result of a mismatch between soaring demand and reduced supply capacity, plus labor shortages and continued on-and-off coronavirus restrictions imposed in port regions, according to last month’s Review of Maritime Transport 2021, a flagship report published annually by the United Nations Conference on Trade and Development (UNCTAD) since 1968.” (Sun, 2021).
Rising Covid-19 restrictions in China, risks associated with labor shortages in China and the U.S., and the high costs that are ballooning upward due to a grossly inflated demand versus a tiny fraction of available supply have caused significant industry challenges in 2022 already. Predictions of it going beyond 2023 and possibly even 2024 are major concerns for the freight and logistics industry.
As a result, China’s freight industry is causing a backlash effect on customer expectations for when products will be shipped out to them. Since most customers may reside outside of China’s domain, this may make impatiens a ruling factor in businesses potentially shifting their manufacturing industries elsewhere. These issues further support the case of real-time shipping delays so many Americans have already faced here in the U.S.
3. Sustainability Expectations: Lowering Carbon Emissions and Costs
Due to growing customer interest and concern for the world we live in, there is an increasing need for the freight and logistic industry to provide sustainable options that lower carbon emissions and costs.
Since the global shutdown in 2020, it’s become indispensable for the industry to pivot and find a more efficient method for transportation of your purchases to reach you. As a result, the transportation industry is changing how they reduce carbon emissions and lower costs by following through with the major changes that come with “Industry 4.0.”
Industry 4.0 includes the following that will help in these endeavors:
- 5G Network Infrastructure
- Internet of Things (IoT) Technologies
5G Network Infrastructure is one way freight and logistics companies are helping businesses eliminate excess time taken during a trip. This is already helping to reduce carbon emissions and costs that would otherwise be transferred over to the customer’s end.
One significant way this is being accomplished is by these businesses updating their tangible asset in an “end-to-end digitization” process, which also helps them discover creative ways to repurpose their business models.
Businesses benefit from 5G Network Infrastructure by tools that allow for total order and delivery visibility on the customer’s end. In addition, it helps customers see where their package is along the journey to reach their apartment, townhome, or house in real-time.
Another major way businesses are cutting down on carbon footprint, and costs for the world economy and customers is by utilizing Internet of Things (IoT) Technologies. As shared by Gartner Research, about 42% of North American fleets have likely already implemented IoT technologies by the tail-end of 2021.
Conclusion
The customer end of the freight and logistics industry can be a tricky thing to navigate. As a customer, you are often caught in the middle of dealing with delayed shipments, overpressurized shippers & carriers, and understanding the political landscape of essential stakeholders.
However, you can beat the competition if you adjust to the new normal by being more proactive in letting your clients know what to expect for shipment times and possible delays. As a result, and more often than not, your clients will be understanding due to the current global events going on at the moment.
With all of that information aside, we at Diamond Freight Systems Inc. are prepared to serve you to the best of our capabilities! With an ever-growing need for reliable transportation and understanding staff ready to help you with your product-shipment needs, it’s time to see how partnering with our knowledgeable team can better align your expectations closer to the actual reality of the situation.
Reach us at our Contact Form!
If you’re ready to talk about essential deadlines, quotes, or even understanding our processes of freight and logistics – reach out to us today, and let’s both discover the possibilities that we can achieve.
References:
Cullen, David. “Logistics in 2022: Technology Further Rides to the Rescue.” Fleet Management – Trucking Info, Trucking Info, Heavy Duty Trucking, & Bobit Business Media, 14 Jan. 2022, https://www.truckinginfo.com/10159624/logistics-in-2022-technology-further-rides-to-the-rescue.
Engdahl, Sylvia. “Carrier and AWS Collaborate to Reduce Food Spoilage across the Cold Chain.” Amazon, Greenhaven Press/Gale, 16 Oct. 2020, https://aws.amazon.com/blogs/industries/carrier-and-aws-collaborate-to-reduce-food-spoilage-across-the-cold-chain/.
Levitt, Craig. “Trendspotting: Driving the Logistics Market in 2022.” Trendspotting: Driving the Logistics Market in 2022 | Produce News, The Produce News, 7 Jan. 2022, https://theproducenews.com/headlines/trendspotting-driving-logistics-market-2022.
Mah, Adrian. “How the Trucking Industry Is Becoming More Sustainable-and Increasing Returns-through Industry 4.0.” PricewaterhouseCoopers, PwC, 30 Nov. 2021, https://www.pwc.com/ca/en/industries/telecommunications/sustainable-trucking.html.
Ortolani, Alexandra. “The Top 7 Shipping & Logistics Trends to Watch in 2022: Easyship Blog.” Easyship, Easyship Inc., 22 Jan. 2022, https://www.easyship.com/blog/the-top-7-shipping-logistics-trends-for-2022.
Smith, Jennifer, et al. “Shipping and Logistics Costs Are Expected to Keep Rising in 2022.” The Wall Street Journal, Dow Jones & Company, 19 Dec. 2021, https://www.wsj.com/articles/shipping-and-logistics-costs-are-expected-to-keep-rising-in-2022-11639918804?mod=hp_lista_pos5#:~:text=Overall%2C%20domestic%20shipping%20rates%20for,handles%20freight%20payments%20for%20companies.
Sun, Luna. “China’s Exporters Face ‘Profound Impact on Trade’ as Freight Rates Keep Rising.” South China Morning Post, South China Morning Post Publishers Ltd., 19 Dec. 2021, https://www.scmp.com/economy/china-economy/article/3160158/chinas-shipping-insiders-brace-another-full-year-rising.
“Why Shipping Is so Expensive in 2022 and How to Navigate It.” OptimoRoute, OptimoRoute Inc., 19 Jan. 2022, https://optimoroute.com/why-is-shipping-so-expensive/.