Common‌ ‌Misconception‌ ‌In The ‌Shipping Industry

Common‌ ‌Misconception‌ ‌In The ‌Shipping Industry

The freight industry has contributed significantly to the economic growth and stability of many nations. Cross border shipping has increased over the past several decades, something that has created employment opportunities in the respective countries. There are four modes of transportation which are commonly used namely sea, air, rail, and road; each of these has its merit and demerits. Therefore, it’s very crucial to weigh each option carefully before picking your preferred method of transportation.   

The success of any shipment is dependent upon the freight company you use. Although all freight companies render the same services, they do tend to differ in their service delivery. Some carriers go the extra mile to ensure all the needs of their customers are met. Topshipping is a company in the freight industry that has offers dynamic shipping services including Amazon FBA shipping, shipping to the USA, Canada, Europe, and China.  

Even though freight is an age-old industry, there are a lot of misconceptions surrounding it. Such myths can be very costly since they easily mislead people. The following are some of the most common misconceptions in the freight industry. 

Sea Freight is Expensive

A lot of people tend to have the idea that sea transportation is very expensive; however, this is a shipping method that is regarded as the least expensive by many industry experts. Sea freight only becomes expensive when a person doesn’t do a proper cost-benefit analysis. Additionally, another factor that makes sea cargo expensive is sending small packages of cargo frequently as opposed to shipping bulk cargo. Therefore, the size of your cargo is directly tied to the cost of transportation. 

Anything Can Be Shipped Via Ocean Freight

This is another misleading information that is common with a lot of people. While the majority of items can be shipped via sea, particular items are not permissible to be transported using this method. Every item that is shipped using ocean freight has to be categorized and listed properly on a packing list which has the Electronic Export Information. All countries have their stipulated rules regarding items that are considered legal or illegal; therefore, ensure you check the rules of the country you’re exporting your goods to avoid any friction with the authorities. 

You Can Share Space in a Shipping Container

Every business owner looks for ways in which they can reduce the cost of production to maximize the profit margin. When your business involves importing items from foreign countries, it’s natural to look for ways to reduce the shipping costs as much as possible. While some people normally resort to sharing container spaces to reduce freight costs, it’s a practice that is consider illegal. Furthermore, this is something that can lead to serious problems that may end up hurting your business. This is because the other person you are sharing the space with could be smuggling contrabands. Plus, any delay in payment by the other party will affect the delivery time of your items. If you have smaller goods that need to be transported, there are several ways that you can opt to use. Consulting with a reputable freight forwarder would be the best thing to do since they can give you proper advice on the mode of transport you ought to use. 

The Rate of Shipping Are Constant

Similar to other sectors of the economy, the sea freight industry doesn’t have a constant rate. This is because the industry is also affected by political and economic factors, as well as seasonality which is largely determined by supply and demand. To avoid miscalculation that might throw you off-budget, it’s very important to familiarize yourself and understand some of the aforementioned factors. Moreover, you should also get accurate and relevant shipping quotes to verify the pricing of freight services. This will help you to make proper financial plans and projection which when done correctly, it may end up saving you a lot of money in your business. 

You will lose Visibility When You Use Multiple Carriers

Some people think that they can lose visibility when they use multiple carriers; their argument is that there isn’t a proper way of tracking cargo. However, this narrative is very incorrect. While using multiple carriers tends to cause anxiety, keeping track of your items is something that can easily be done these days considering the technological advancements. A lot of companies have resorted to using systems that can easily track every move and stage of the shipment. Thus, irrespective of whether a person uses multiple carrier options such as rail and air transportation, they can still be able to follow the progress of their cargo. Additionally, using multiple carriers can be of great benefit to you since it offers more flexibility, thus helping your business to save on money.

Freight Companies Rarely Offer Any Value

Another very common myth is that shipping companies only do tasks that can be done by your employees; therefore, they don’t offer any value. In reality, shipping carriers can play a huge part in the success of a particular company. Freight carriers can improve your supply chain and facilitate consistent delivery while ensuring that every good is handled with the utmost care. Ultimately, this translates to having incredible customer services; ergo, your business will get much visibility and recognition in your respective market.    

Rail Can’t Be Used for International Shipping

Some people think that rail isn’t a shipping method when it comes to international shipping. The truth is that rail can be used for international shipping and can help save businesses a lot of money in their operational cost. Rail shipping can be used collaboratively with other modes of transportation such as sea freight to transport cargo internationally. 

Conclusion

The misconception in the shipping industry has held back many people from expanding their business for many years now. However, the truths provided above clarify some of the popular myths circulating in the public domain. Knowing the truths in the freight industry can help you run your business more efficiently. 

 

  

 

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