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Did you know that by 2018, the transportation and material moving industry accounted for 7.1% of all jobs in the U.S?
The industry employs one of the most significant workforces in the nation. By the year 2026, the number should grow further by another 6%. Additionally, the global logistics market is likely to grow to $12.6 billion by 2023.
But, with all these statistics, the shipping industry is not without challenges. Before we look at these setbacks, let’s find out what shipping industries do.
The shipping sector involves everyone whose supply chain depends on moving cargo via:
- Air freighting
- Ocean shipping
- Land freighting
- Rail freighting
These shipping companies plan, integrate, and ship cargo. They use the above means of shipping.
But, some changes are now causing the unpredictability of the industry’s future. The change factors include:
What are the Major Challenges Facing the Shipping Companies?
The global economy, technological changes, and environmental factors present challenges amongst shipping companies.
Take an example of ocean shippers. The Shipping and Freight Resource informs us that sea levels continue to rise. Again, coastal erosion keeps worsening. Sedimentation patterns are also changing.
All these are due to the constant melting of ice around the North Pole caused by global warming. Such factors continue to affect shipping companies.
Our article below will explore five significant challenges that shipping companies face. Read to find out more.
Hazardous Environmental Issues During Shipping
In the modern-day, the shipping industry faces wide-ranging environmental issues. Some of these include fuel emissions and oil spillage.
All transport vehicles depend on burning fuel, which is mostly diesel. This results in the release of some harmful chemicals in the air. Because of the high volume of the transport industry, there’s a lot of pollution cases.
Oil spillage amongst the ocean shippers also affects life in the oceans. Unfortunately, this is becoming a major challenge in the shipping industry. It’s becoming hard for transporters to maintain the recommended shipping practices. This is partly because some environmental issues are beyond their control.
The high humidity levels in the ocean are also a source of challenge. They can cause corrosion and other internal damages to sensitive tools and equipment. Such tend to happen during auto transportation via the ocean.
But, some people are now taking precautions by using things like:
- Humidity indicator cards
- Moisture-barrier packaging
Unpredictable Transportation Delays
Transportation delay is one of the common challenges that the shipping industry faces. For example, there are changes in terrain and terrible roads in remote areas. Such may cause truck accidents or breakdowns.
Weather conditions can also cause some unreliability in the transportation of cargo. The worst thing is that you cannot control such situations.
A delay in the customer’s car transportation can cause late deliveries. Such cases are likely to affect the company’s reputation. They may also lead to the loss of clients.
Other issues that may cause the unpredictability of transportation include:
- Traffic congestions
- Many checkpoints
- Toll stations
Such delays may cause the logistics companies to lose out on both time and money. The unfortunate thing here is that you cannot rule out unforeseen delays.
Nonetheless, there are reliable companies for moving cars out there that go the extra mile. They do this to ensure that clients will hardly experience delays.
They work with collection and delivery duration of around 3 to 10 working days. This will depend on whether the mode of transport is with a driver or with a car transporter.
When dealing with such reputable car shippers, you will enjoy convenience. They take the vehicle to the place indicated in the vehicle transportation quote.
When it comes to the collection, they will also notify you of the delivery at least a day before. Thus, your vehicle shipping becomes safe, fast, and convenient amidst challenges.
The Continuous Fuel Price Inflation
Fuel price accounts for the most significant part of the shipping industry’s costs. Hence, this is one of the most significant challenges that these companies face.
The increasing fuel prices cause the constant rise of freight charges. This causes an automatic reduction in the revenue and earnings of vehicle transporters.
Companies like car transportation are finding new ways to streamline the process. For example, they’re trying to optimize travel routes to lower fuel prices.
More so, the industry players are working to find fuel alternatives. They’re doing this as a way to offer more optimal solutions to enhance future operations. One of these fuel options is electric or hydrogen-powered vehicles.
Shortage of Skilled Personnel
With modern technology, there’s a rising need for a competent labor force. This includes the transportation field.
The shipping sector faces an increased shortage of skilled personnel. Most of the workers are under-skilled. They lack the competence needed to make the entire transportation process efficient. As a result, most companies experience the challenge of:
- Under-performing human resource
- High labor turnover
- Increased training costs
Damage of Items During Handling or Shipping
Due to harsh conditions in the shipping line, there are high chances of item damage. The forces used when loading items onto trucks, ships, or planes is one primary reason for the damages.
Again, the items pass through bumpy roads, potholes, and rough seas. Such increases the damaging impact.
These damages may force auto car transporters to use the extra money for repairs. Nonetheless, some shipping companies use trained and experienced packaging engineers for proper packaging.
So, if you’re shipping a car or any other form of cargo, you can also apply such measures. They will help you reduce the risk of damage.
The shipping industry keeps changing. This is especially as the global economy’s future remains unpredictable. Different freight forwarders have to accommodate the changes and adapt to them.
The truth is that shipping companies will keep encountering different challenges. The issues may differ based on whether the movers operate via road, rail, air, or ocean.
Fortunately, shipping companies can take measures to lower the risks to such issues. These measures should also help reduce the impact of problems when they occur.