19 May
The past couple of years had been unforgiving for the whole human race. The COVID-19 pandemic, which distressed the economies globally, has still not released the world from its clutches. Among the industries that had to bear the major brunt of the situation is the trade industry. In fact, the circumstances had been strange to say the least.
On one hand, the demand for multiple commodities increased. And on the other, the capacity to meet them through import and export faced obstruction due to a number of reasons. For example, the shortage of labour and strict pandemic norms hampered the global supply chain. The regular pandemic waves hitting different parts of the world have been making things worse.
If that was not enough, the beginning of 2022 witnessed the power struggle between Russia and Ukraine. The closure of airspaces for flights and the ongoing threat of soaring commodity prices are among the many reasons for the traders to panic. Hence, the year has already made apparent a number of challenges for various trade-related processes, including freight booking.
So, What Are the Challenges?
To begin with, the freight rates are at an all-time high. Firstly, the industry is already a hard-hit by the pandemic-related issues. Secondly, the oil and fuel prices have been on a continuous rise ever since Russia’s attack on Ukraine started. Considering the gravity of the condition, one can’t expect the prices to bow down for the next few months.
In addition, the shortage of a number of critical resources is adding to the seriousness of the circumstances. These include:
- Lack of sufficient labour at ports as well as at other points across the trade supply chain. Obviously, it leads to congestion and shipping delays too.
- The inability of various ports to run to their full capacities. Because of frequent outbreaks due to COVID-19 variants, there have been instances of lockdowns and quarantine. It hampers smooth shipping operations.
- Moreover, a number of carriers have shut down their operations to many destinations, which forces exporters to rely on whatever options they come across.
What Do These Lead To?
As a consequence of the above-mentioned challenges, the exporters currently experience two main issues – high costs and shipping delays. While making a booking for containers, they usually end up:
- Either spending a lot of time looking for the best quote
- Or choosing an expensive quote from the first few options they find.
However, this has been an issue for a long time. Though, it is more of a concern at present when spending unnecessary time and costs can hit their anticipated profits. In order to deal with it, it is necessary that they adopt certain measures that can make things a bit more favourable for them.
How to Booking Freight in 2022?
Now, the question is what different approach an exporter can follow to make freight booking simple and cost-effective. Here are some suggestions:
- Extensive Rate Comparison: Even during these tough times, you may find freight forwarders offering some of the best deals. All you need to do is find them through fast and a broad rate comparison process.
- Submit Your Preferred Rates: If you have been exporting from Australia for a long time, you may have a near-accurate idea of how much the freight should cost. So, you can share your own rates with various service providers and expect at least one of them to acknowledge them.
- Avoid Manual Processes: Due to manually filling a number of booking forms, you may be consuming a lot of time. Moreover, it may lead to errors that can further slow down the process. So, switch to electronic booking systems for faster processing.
- Use the Top Software: In 2022, the demand for electronic export management and documentation tool is bound to increase. You may also invest in one that not only accelerates freight booking but also promises an automated request for permits and electronic documentation for certificates of origin, health/phytosanitary certificates and other documents.
Altogether, you can’t expect the present circumstances to improve in the near future. However, you can still save time and money on freight booking by adopting the modern means of contacting the shipping lines.
