Biggest Challenges facing the Shipping Industry Today.
The shipping industry has had with its fair share of challenges during the past few years and is expected to face even more in the near future
Here are a few of the biggest challenges today’s shipping industry is expected to experience.
There seems to be less and less people interested in this industry, add to that the retirement of many truck drivers during COVID 19
New Environmental Regulations
Stricter environmental emissions regulations help to deliver great benefits in the long run, but these could cost a series of short-term challenges for the shipping industry. According to a recent article, these new regulations depend heavily on certain technologies. The government may require companies to implement them to ensure that they meet the new regiments, but doing so will come at a cost.
Shipping IndustrySecurity risks have always been a challenge for the shipping industry, but today, they’re providing more issues to overcome. For example, pirates pose a bigger threat for shipping, especially since the number maritime piracy and armed robberies on ships in Southeast Asia and West Africa has increased.
The rising costs of necessary materials could negatively affect industry competitiveness. The increasing prices may lead to higher costs of operation. Higher prices of fuel and parts as well as poor market conditions could cause serious issues in many global shipping companies. The Malaysian domestic shipping industry is already experiencing difficulties because of these higher costs.
What is causing the shipping Industry crisis?
After a fall in shipping demand during the early days of the pandemic in 2020, a surge at the end of that year led to delays, port traffic jams, and blockages across the world. Now, containers are jammed up in ports due to rising demand and a continuing shortage of dockworkers and truckers.
The supply chain crisis could last into 2023 unless governments boost spending in ports, railways, and warehouse.
The global supply chain network is on its knees. After a fall in shipping demand during the early days of the pandemic in 2020, a surge at the end of that year led to delays, port traffic jams, and blockages across the world. Now, containers are jammed up in ports due to rising demand and a continuing shortage of dockworkers and truckers.
As shippers, you are facing many problems such as lack of resilience in supply chains, late shipments, High freight rates and lack of visibility. All of these contribute to higher cost being passed on to the end user.
Challenges facing Freight Forwarders
- Increased Cost.
- Container Capacity Remains a Problem.
- Commoditization of Freight Forwarding Makes It Hard to Stand Apart From Other Forwarders.
- Unforeseen Disruptions to Trade Cause New Challenges.
- Staffing Shortages and Retention Continue to Undermine Performance