The Covid-19 pandemic started the international shipping crisis. In Australia, the shipping crisis is showing little sign of abating. despite the drop in Covid cases. It is now still rare for shoppers to find shoes, women’s fashion, and stationery in physical stores. Here are some reasons for this continued crisis that almost affect the shipping and logistics of Australian eCommerce brands during pandemic.
Continued Supply Chain Issues
The supply chain issues are predicted to continue for up to 18 months starting February, 2022, according to Australian retailers. This is in spite of Covid cases dropping. Paul Zahra, Chief Executive at Australian Retail Association says that “this is due to the sheer volume of products and supplies within the global supply chain. The profound shortage of freight space on ships, shipping containers, and pallets exacerbated by the limited flights into the country”
High Shipping Prices
Shipping has high prices as a result of the pandemic. There has been a sevenfold increase in supply chain costs, and ordering times across the world have doubled. The managing director at Stelno Logistics Carlo Villazon, says that transporting a common-sized, 40 feet shipping container costs between US$1,000 and US$1,500. Last year’s price blew out tenfold. This is primarily due to the fact that price-fixing cartels are illegal in Australia are illegal. However, these constraints are limited to Australia alone. International shipping companies are, instead, allowed to set prices collectively.
Legal Barriers
There is uncertainty about when goods ordered from overseas will arrive. An uncertainty that prompts Australian importers to order and plans further ahead. The problem with planning ahead is that there is no certainty that those plans will stay in place. Retailers, especially in seasonal sectors like footwear, need to order and pay much earlier for the stock they are not sure will be available. ARA members, for example, don’t have enough stock or receive stock at the wrong time.
Overcome Legal Constraints With A 3PL Partner
There are many issues that are difficult for companies to work out on their own. What eCommerce brands need is a 3PL company to work with for seamless execution. Here’s how a logistics partner can help you overcome bottlenecks.
Planning Ahead
In the logistics business, last-minute plans do you no good. Expediting shipments can mean higher fees. A cost-efficient plan takes long-term arrangement. By planning ahead, overcoming problems in the shipping process will be much less of a hassle. Logistics partners with an all-in-one solution can help arrange shipping as far in advance as possible so as to mitigate unforeseen charges.
An Account Manager
Minor delays in the shipping process come from inadequate communication with manufacturers and suppliers. Whether finding suppliers or getting your first samples delivered, your best bet around the communication is to opt for a partner with the facility to source products and project manage everything to plan. Account managers facilitate this role perfectly. Resource-friendly account managers are hard to find but worth the hunt. With an extensive network in the logistics industry necessary to prepare and plan, account managers can seamlessly carry out conversations with the people responsible for manufacturing your products. Floship provides resource-friendly, efficient account managers for every project. Click here to learn more.
Working Around Environmental Damages
Ocean transport can bring about high humidity levels. As Australian supply chains deal with just-in-time delivery as well, it doesn’t do well with the unexpected, especially environmental damages. Electronics, for example, may corrode or have internal damage and delay the process as a whole. 3PL partners can arrange the necessary protection such as humidity indicator cards, moisture-barrier packaging, and desiccants.
Cargo Insurance
Items can always be damaged during transport. Therefore, it is always best to opt for cargo insurance. Cargo insurance is an excellent way of avoiding the cost of replacing or repairing damaged goods. It is best to with highly reputed insurance companies. Floship provides Flosurance, a shipping insurance solution for global eCommerce brands. The insurance would cover domestic, international, and parcel transit for all clients.
Hazmat Shipping
Shipping companies are specialized in hazmat shipping. This means that eCommerce brands can be provided with curated suggestions and services for specific packaging and handling requirements. And more importantly, eCommerce SMEs will be sure they don’t break any rules or regulations due to their legal grounding.
Experienced shipping logistic companies take the time to anticipate problems by using regional, national and international monitoring systems. With an extensive network of industry contacts, they identify and modify the most suitable shipment routes to avoid trouble spots. Floship is a logistics company with a simplified, all-in-one fulfillment solution for eCommerce and SMEs. Here, we help global eCommerce brands take control of their supply chain. We offer competitive rates and a range of services to suit your needs. Contact Floship today to get started.
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