Is your spot shipment again delayed, disrupting your production schedule and supply chain?
For businesses relying on spot freight, shipping delays can disturb production and massively damage their bottom line. Up ahead, we will explore the common reasons behind these delays and strategies to navigate them.
Additional considerations for spot freight
By the nature of operations, spot freight is more susceptible to delays due to factors like:
- Price fluctuations: Spot rates can fluctuate based on supply and demand. Be prepared for potential cost increases if booking during or periods of high demand.
- Limited booking visibility: The inherent flexibility of spot freight often means bookings are made closer to the shipment date, potentially leading to less predictable schedules compared to contracted rates, giving less time for planning and adjustments.
- Competition for vessel space: During periods of high demand, securing space on a vessel can be more challenging and potentially lead to delays.
To tackle this, be prepared to adjust your shipping schedule or destination based on available spot rates and capacity. Working with a reliable logistics service provider (LSP) can help you navigate the spot market and secure competitive rates based on real-time market conditions.
Mitigate and prevent spot shipping delays (+checklist!)
By following this checklist and adopting a proactive approach, you can significantly reduce the risk of spot shipping delays and ensure a smoother overall shipping experience.
| # | ACTION | FOCUS | PREPARATION STAGE | MITIGATE | PREVENT | 
|---|---|---|---|---|---|
| 
                                #
                             1 | 
                                    ACTION
                                 
                                    Plan ahead Book early, especially during peak seasons. | 
                                    FOCUS
                                 Minimize port congestion delays 
 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             2 | 
                                    ACTION
                                 
                                    Double-check documentation Ensure all documents are accurate, complete, and up-to-date (HS codes, specs, addresses). Create a documentation checklist (proactive). | 
                                    FOCUS
                                 
                                    Prevent delays due to documentation error
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 
                                    ✓
                                 | 
| 
                                #
                             3 | 
                                    ACTION
                                 
                                    Diversify your supply chain Don't rely on a single source of materials in case of supply chain disruptions. Develop supplier relationships for early warnings (proactive). | 
                                    FOCUS
                                 
                                    Reduce impact of supply chain disruptions
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 
                                    ✓
                                 | 
| 
                                #
                             4 | 
                                    ACTION
                                 
                                    Maintain safety stock Keep a buffer inventory of critical materials in times of market disruptions. | 
                                    FOCUS
                                 
                                    Mitigate production slowdowns
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             5 | 
                                    ACTION
                                 
                                    Know the regulations Research customs clearance requirements for the destination country. Utilize a customs broker early (proactive). | 
                                    FOCUS
                                 
                                    Avoid issues in customs clearance
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 | 
                                    PREVENT
                                 
                                    ✓
                                 | 
| 
                                #
                             6 | 
                                    ACTION
                                 
                                    Monitor weather forecasts Stay informed about weather patterns impacting shipping routes due to external factors. | 
                                    FOCUS
                                 
                                    Prepare for potential weather disruptions
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             7 | 
                                    ACTION
                                 
                                    Budget for unexpected events Allocate budget to cover potential disruptions during global emergencies and external factors. | 
                                    FOCUS
                                 
                                    Financially prepare for disruptions
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             8 | 
                                    ACTION
                                 
                                    Invest in cargo insurance Protect your cargo financially from unforeseen events (delays, damage, theft). | 
                                    FOCUS
                                 
                                    Protect your freight financially
                                 | 
                                    PREPARATION STAGE
                                 
                                    Before booking
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             9 | 
                                    ACTION
                                 
                                    Work with a reliable LSP Partner with an experienced carrier for route optimization, tracking, and market navigation. | 
                                    FOCUS
                                 
                                    Optimize route, track shipments, navigate spot market
                                 | 
                                    PREPARATION STAGE
                                 
                                    Once your shipment is booked
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             10 | 
                                    ACTION
                                 
                                    Communicate proactively Maintain open communication with suppliers, LSP, and customs brokers. | 
                                    FOCUS
                                 
                                    Stay informed about potential delays
                                 | 
                                    PREPARATION STAGE
                                 
                                    Once your shipment is booked
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             11 | 
                                    ACTION
                                 
                                    Explore alternatives Consider less congested ports or inland routes if feasible to tackle congestion. | 
                                    FOCUS
                                 
                                    Adjust for congestions delays
                                 | 
                                    PREPARATION STAGE
                                 
                                    Once your shipment is booked
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             12 | 
                                    ACTION
                                 
                                    Real-time shipment tracking Monitor your shipment's location and identify potential delays. | 
                                    FOCUS
                                 
                                    Identify potential delays due to external factors
                                 | 
                                    PREPARATION STAGE
                                 
                                    Once your shipment is booked
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
| 
                                #
                             13 | 
                                    ACTION
                                 
                                    Flexible approach Be prepared to adjust schedules or destinations based on rates, capapcity, or unforeseen delays | 
                                    FOCUS
                                 
                                    Adapt to changing circumstances
                                 | 
                                    PREPARATION STAGE
                                 
                                    Once your shipment is booked
                                 | 
                                    MITIGATE
                                 
                                    ✓
                                 | 
                                    PREVENT
                                 | 
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