OCEANTRANSPORT [ INSIGHT ]
by David L. Buss CEO, DB Schenker USA customerservice@dbschenker.com | 800-225-5229
Could Ocean Be the Best Solution?
Since COVID, businesses worldwide have had to contend with increased demand, limited storage capacities, and the need for fast, reliable transportation of goods. Many businesses have focused on ocean transport as a potential solution to their shipping issues.
large-scale shipments. By consolidating shipments onto a single vessel, businesses bene t from economies of scale, which means more affordable shipping rates per unit. Lower carbon footprint. Ocean transport offers a lower carbon footprint than alternative shipping methods. AN INTERMODAL SOLUTION Intermodal relies on synthesizing various transport modes to enhance ef ciency, exibility, and sustainability. By integrating ocean shipping in intermodal solutions, businesses can effectively move goods from the port of origin to a myriad of destinations. One main bene t of incorporating ocean shipping in intermodal solutions is saving on costs and time. Shipping larger quantities of goods through maritime transport is both economically and environmentally ef cient because of optimized processes. Businesses also reduce their carbon footprint by capitalizing on the energy ef ciency of maritime transport. The advantages of ocean shipping include scalability, exibility, cost- ef ciency, and sustainability. By leveraging the comparative advantages of maritime transportation, businesses can create seamless, cost-effective, and ef cient intermodal solutions. n
Labor shortages. The pandemic impacted the availability and cost of labor, leading to labor shortages that have affected industries worldwide. BENEFITS OF OCEAN TRANSPORT Ocean transport offers numerous bene ts that include: Offsetting high freight costs. Businesses looking for a budget- friendly shipping solution are moving toward ocean transport for its cost ef ciency. Ocean has emerged as a go-to option for long-distance and high- volume shipments due to its stable and consistent pricing. Shipping oversized or heavy cargo. Ocean transport continues to be one of the most economical choices when moving heavy and bulky cargo that may be too large for air transport. With various vessel types and con gurations, ocean freight can accommodate cargo that would be dif cult, if not impossible, to ship via other methods. Ef ciency. While air transport might be faster, ocean transport offers greater ef ciency, particularly regarding
In addition, many businesses struggle to maintain a steady ow of goods amidst supply chain disruptions, which include: Port delays. With consumer appetite for ecommerce trade reaching new heights, the need for ef cient logistics was never more paramount. Although signi cant leaps have been taken to help untangle the mess, businesses aren’t out of troubled waters just yet. Expensive shipping. There has been a signi cant surge in shipping expenses in the past two years, mainly owing to a blend of heightened demand and the reduced availability of services following the pandemic. There’s also erce competition for limited space, allowing carriers to hike prices. Material shortages. Companies grapple with material shortages across industries. The scarcity of valuable resources delays production and in ates the cost of goods. And political trade tensions and natural disasters negatively impact sectors such as automotive, pharma, and agriculture, making it even more challenging for businesses to remain competitive.
50 Inbound Logistics • July 2023
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