High-volume freight carriers move essential goods using a mix of multiple transport modes and are always on the lookout for logistics cost reduction. However, there are different kinds of bulk shipments, and the shipping protocols vary accordingly.
Bulk shipments are a crucial component of modern supply chains and fuel global industries and economies. Such goods of strategic importance include coal, wheat, cement, petroleum products, and several others.
Types of Bulk Freight
To get a deeper understanding, let’s take a look at the primary categories of high-volume shipping:
Dry Goods
The dry cargo consists of unpacked dry and solid goods that are loaded in specialized bulk carriers or vessels designed to hold dry goods in large volumes, such as food grains, fertilizers, minerals, etc.
Liquid Bulk
Also known as tanker shipment, this mode transports liquids safely in specialized vessels or tankers and the goods transported in bulk include chemicals, petrol, diesel, gasoline, liquefied gas, oils, etc.
Break Bulk
Break bulk cargo is stored in dock warehouses before the cargo ship’s arrival and is then packed and loaded individually within a vessel. The goods in this category include vehicles, heavy equipment machinery, etc.
Challenges Associated with Transporting High-Volume Shipment
Capacity Limitations – Transport modes (highways, ports, railways) may not be adequately equipped to load high-volume cargo due to the unavailability of vehicles or storage space, which leads to congestion and delays.
High Costs – Bulk loads involve higher operational costs, including fuel, labor, and vehicle wear and tear. The dynamic shifts in these cost parameters complicate budget planning. Moreover, inadequate load plannin,g such as PTL (partial truck load) inflates costs further.
Regulatory Mandates – Customs, labor laws, cargo safety protocols, and environmental policies undergo frequent updates that require significant expertise and resources for adequate adherence.
Outdated Traditional Systems – Old, disconnected software solutions do not provide real-time tracking or data analysis and are also prone to cyberattacks, often hindering smooth operations.
Unskilled Manual Labor – High-volume cargo transport requires long-haul drivers and a skilled warehouse and inventory planning workforce. Retention challenges contribute to the problem.
Global Supply Chain Disruptions – Natural disasters, geopolitical tensions, market volatility, and several other delays or issues plague the logistics chain.
Improper Risk Management – Large shipments involve heavy insurance costs to ensure the safety of the transported goods.
Beneficial Tactics for High-Volume Shippers
There are various ways in which bulk shippers can face operational challenges better:
- Sustainable Practices
Investing in fuel-efficient vehicles, alternative energy sources, and waste management strategies go a long way in controlling the rising costs.
- Diversified Collaboration
Partnering with multiple, reliable logistics partners lets shippers access adequate capacity and expertise for ensuring seamless operations.
- Dynamic Planning
Flexible supply chain plans help in adjusting to market fluctuations and disruptions better.
- Employee Training & Development
Offering regular training sessions assists with improving workforce skills and retention.
- Regular Freight Rate Audits
Frequent freight invoice auditing enables shippers to detect errors or discrepancies in billed amounts.
- Digital Transformation
Certain ways in which advanced technology solutions enable better visibility and analytics for faster decision-making, all of which reduce the long-term operational costs of high-volume shippers, include:
Dynamic Cargo Optimization
AI-powered tools automate the process of bulk load optimization, minimize empty miles, and enable route optimization by analyzing real-time updates and historical data.
Detecting Revenue Leakage
Hidden, sometimes overlooked costs lead to unnecessary costs that affect the bottom line. An automated analysis offers an extensive view of the costs to identify the sources of revenue leakage for quick corrective action.
Digital Carrier Collaboration
Data-based platforms can be leveraged to connect shippers with a reliable network of multiple high-volume fleet solution providers, enabling competitive pricing and flexibility in operations.
End-to-End Operational Visibility
IoT and telematics solutions enable real-time shipment tracking and condition monitoring to ensure compliance and the cargo’s in-transit safety.
Progressive Risk Management
Predictive analytics utilizes historical data to foresee potential disruptions or delays. Moreover, selecting high-volume cargo insurance options can be streamlined using automated solutions.
Business Benefits of an Optimized Bulk Shipping Strategy
Some of the advantages for shippers in optimizing their shipping options are:
- Lower Cost of Transportation
- Higher Profitability
- Timely Delivery
- Enhanced Global Reach
- Reliable Carrier Network
What Does the Future Hold?
The bulk shipping industry is set for some significant changes in the next decade or so. Green initiatives and technology upgrades present both challenges and opportunities in the domain. Being updated and adaptable will provide valuable support to clients to help them thrive in a competitive scenario.
Integrating the latest technology advancements has become crucial for high-volume shippers to face challenges and explore new opportunities with ease while reducing the costs incurred and optimizing their operations.
