4 Data Challenges Freight Forwarders are Facing in 2022
Despite the fact that almost everyone has a GPS tracking device in their pocket, tracking the location and status of vessels and containers continue to be one of the top challenges facing freight forwarders in the shipping industry.
Even for those who can "see" the location of shipments, there is little they can do when they are delayed. Data on ocean shipping remains a major challenge for the shipping industry.
This article outlines the data challenges freight forwarders encounter in managing their ocean freight logistics.
1. Inaccurate and Limited Shipping Data
Accurate shipping ETA data plays an essential role in the supply chain as it typically determines the total time for delivery of the shipment. However, access to this data can be limited when it comes to certain information. Calculating the correct ETA is challenging due to uncertain external factors that impact arrival time.
2. On-time delivery of Shipping Data
The timely delivery of ETA changes and updates is crucial to freight professionals as it often has a ripple effect on the rest of the supply chain. However, these updates are usually available several hours or days after the fact, making them less useful in proactive logistics planning.
3. Hassle Finding & Providing Shipping Data
Freight forwarders play an important role in the supply chain as they act as mediators with stakeholders about the status of their cargo. However, accessing tracking data remains a challenge when it comes to locating cargo, and tracking vessel arrivals and delays.
4. Complications from the pandemic
In the wake of the pandemic, lockdowns have exacerbated the challenges of gaining reliable shipping data. Unprecedented delays at container ports, blank sailings, and port capacity constraints further impacted shipment lead times.
For supply chain professionals, getting accurate data on container and vessel arrival is crucial to maintaining smooth operations. There is a greater need than ever before for supply chain managers to have accurate, real-time ocean visibility.
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2022 was another tumultuous year for the ocean shipping industry. The combination of numerous disruptions ranging from geopolitical conflicts, Covid-19 lockdowns, industrial labor strikes, inflationary pressures, and extreme weather events gravely impacted ports worldwide and global supply chains.
The Ukraine crisis and the COVID-19 pandemic impacted global supply chains significantly in 2022, highlighting the importance of being prepared for unexpected disruptions and the need for agility and flexibility in managing these challenges. The Russia/Ukraine war disrupted trade and transportation routes, resulting in delays and increased costs for businesses that rely on imports and exports between the two countries. The ports of Mariupol and Odesa, key transit points for goods in Ukraine were disrupted and had to shut down by the conflict.
Despite the fact that almost everyone has a GPS tracking device in their pocket, tracking the location and status of vessels and containers continue to be one of the top challenges facing freight forwarders in the shipping industry.
