Modern technology has progressed to an extent where manufacturers, suppliers, shippers, freight forwarders, logistic service providers, shipping lines, and other participants in the supply chain can track their shipments when being transported by road, tracking ocean freight remains somewhat problematic. According to a WSJ report, only about 40% of freight to the U.S. was arriving on time, which means that there is ample opportunity for the implementation of freight tracking technologies that can keep everyone informed of the cargo status.
Ocean Freight Tracking Challenges
The challenges inherent in tracking and tracing ocean freight are easy to appreciate. These issues reflect the increasing demands faced by the logistics industry due to the globalization of trade and commerce and e-commerce. The logistics industry, particularly ocean shipping, is facing a lot of pressure. It is not only because of the additional demand but also due to the poor visibility of ocean freight. While shipping lines place priority on reaching their destinations as quickly as possible, they may not always place equal importance on information sharing. There is also a common misconception that carriers keep trying to improve their data delivery, however, most of them shy away from making the necessary investments. By increasing the visibility with Cosco tracking, more benefits than just peace of mind accrue. These include a reduction in demurrage charges and compliance violations, to mention a few.
The Top Benefits of Better Management of Ocean Freight Accruing to Different Parties
Cargo Owners: Usually, cargo owners tend to negotiate shipping terms directly with the carriers. By improving the track and trace information within the supply chain, it can lead to significant benefits. These include better optimization of inventory, reduction in detention and demurrage costs, superior traceability, and improved leverage for freight cost negotiation, not to speak of improved customer satisfaction. With the cargo owner playing a direct role in freight management, the cumulative effect of these benefits can result in a significant reduction in the cost of ocean shipping.
Shippers: Individuals and businesses that initiate a shipment and bear the cost also realize the same benefits of increased visibility of ocean freight. However, if the cargo volumes are not sufficiently large, it may not make much economic sense for them to invest independently in ocean freight tracking and traceability facilities.
Freight Forwarders: The job of the freight forwarder is to move cargo from one point to another in the most efficient manner and achieve cost savings for the owner of the goods. With access to real-time information on the status of the shipment through advance connected systems, they can deliver superior service to their customers resulting in a better experience by the final customers. By making the shipments more visible, businesses can maintain better control over the inventory resulting in fewer stock-out situations and better and identification of problems that can affect the customer experience.
Freight tracking is an important component of contemporary supply chain management. By knowing the status of shipments on a real-time basis, all participants can offer faster and more economical services and deal better with unexpected disruptions.