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The dreadful Covid-19 pandemic plunged the global logistics and shipping industry into stagnation due to severe cross-border trade restrictions, which lead to falling in the demand and supply of goods globally. In a post-pandemic world, a sudden spike in global imports and exports has pushed international shipping prices to an all-time high, as the shortage of container spaces is hitting the shipping industry badly.
Freightos reported that the price of a shipping container increased by 80% since November 2020 and by nearly thrice over the previous 12 months. Nearly 80% of all global trade, or all commodities transported by truck, ship, or other means along important trade routes, are affected by the price hike. The worldwide supply chain has been subjected to a unique set of challenges as a result of the Covid-19 pandemic. Freight businesses have made adjustments over the past year, but the logistical nightmare that the lockdowns unleashed clearly exists even today.
According to the UNCTAD policy brief, “Changes in consumption and shopping patterns triggered by the pandemic, including a surge in electronic commerce, as well as lockdown measures, have actually led to increased import demand for manufactured consumer goods, a large portion of which is moved in shipping containers.”
Five Factors which Increased Freight Shipping Costs
The shipping industry is burdened by a few ongoing problems that drive up the cost of international shipping, including:
- Global eCommerce adoption is increasing
Increased parcel volumes are driving up demand for container capacity as consumer buying patterns change. The already constrained maritime freighter capacity was squeezed in December 2020 due to a 23% increase in US inbound cargo loads from the previous year.
The overwhelming volume of last-mile eCommerce delivery is causing couriers like FedEx to suffer. By 2025, eCommerce-related parcel volume is anticipated to reach 100 million daily. Already under stress, logistics experts are spending extra hours to prepare for a future dominated by international eCommerce.
- A shortage of manpower
A lack of workers is affecting ports, warehouses, and manufacturing centres. Despite safety precautions taken after the outbreak, people have been slow to return to work.
Stagnant employment is largely a result of restricted access to vaccines in some regions and stimulus-boosted salaries in the United States. Logistics companies must operate at a lower capacity and increase rates to make up for a lack of workers.
- Irregular openings and closings
Regulating the capacity of shipping containers is challenging for shipping businesses because of varying access to important ports. Although there are new breakouts and closures, particularly in Asia, economies are eager to revive manufacturing output. In turn, irregular lockout schedules interfere with the regular collection and delivery times. This results in unstable access to essential shipping infrastructure and a slowed flow of products.
This irregular activity slows delivery schedules and causes products to accumulate in ports. Companies are more active in managing operations as new capacity becomes available, which keeps labour prices high.
- Port restrictions and congestion cause delays
For those in the international supply chain, port congestion, especially in the US, is a big issue. The average delay time for late vessels is growing while fewer ships are sticking to their delivery timetables.
- Shipping Containers Are Scarce
There was a significant global movement of shipping containers last year. In other words, desperately needed empty containers are stranded in overcrowded, jam-packed, or closed ports.
Few containers are available for a return trip to Asia or Europe when lesser ships arrive at US ports. This causes massive stockpiles of goods at warehouses and port terminals within the United States, slowing down shipping delivery times overall. Additionally, pickups for transport truckers—including picking up fresh loads and unloading empty containers—take longer in congested ports.
Significance of Planning a Budget in International Shipping
Without adequate budget allocation, you might be forced to pay more for delivery services, which would reduce your profit margins. Additionally, you might have to shut down your company. Setting up a budget for international shipping can help you understand what kind of profits you need to scale and how to do it. You’ll labour within those constraints to cover the expenses allocated for this purpose.
8 Cheapest Courier Services to Ship Globally From India
Nimbuspost, an AI-enabled shipping aggregator platform, was introduced in 2018 and is quickly becoming one of the major stakeholders in India’s logistics market. It provides warehousing, fulfilment, and domestic and best international shipping solutions through NimbusGlobal, a fully integrated logistics platform. The company works with India’s top 27+ different courier partners around the country, including Blue Dart, Delhivery, XpressBees, DTDC, and Shadowfax.
The NimbusPost dashboard has a number of useful features, including an order verification system, an automated non-delivery report, a live shipment, order booking, post-purchase shipping alerts, and performance tracking. In order to offer the greatest delivery options for e-commerce, it is rapidly expanding its presence in several Southeast Asian and European nations.
Shiprocket X is a low-cost global courier aggregator by Shiprocket that provides global shipping from India to more than 220 nations. The connection with courier partners like One World and Aramex, which gives you a competitive advantage of pre-negotiated, deeply discounted rates, is the best feature of its system. Additionally, you receive a wide range of excellent services. The first 50g of its international shipment starts at Rs. 290.
One World is among the most well-known companies in global shipping. They enable you to ship across more than 220 countries, including the USA, Canada, Europe, Africa, and others, through the numerous services they provide for your international orders. Depending on the type of shipment, the delivery period for their services is between two and three days.
Aramex, one of the leading international courier services, offers specialised international logistics services to emerging and established eCommerce companies. They have operations all around the world and provide shipping services to more than 240 countries. Sellers looking for speedy shipping should consider their export express shipping. Additionally, they have 2 extra options under the headings of priority and value express under export express. Value Express is a cost-effective, time-efficient delivery service for sending goods.
The United States, Canada, Singapore, the United Kingdom, Europe, Australia, and New Zealand are all part of its extensive global network. To give your company the range of options it requires, E com Shipping Solutions offers unmatched express delivery services, air freight shipping, and ocean freight shipping.
For fulfilling orders internationally, DHL is a well-known company. Along with cutting-edge shipping tools, tracking systems, and a weekly billing system, they have more than 53 years of experience in international logistics. These functions cover all of your shipping requirements. DHL is undoubtedly your best option if you’re seeking a trustworthy yet affordable courier provider.
When it comes to shipping for online purchases, India Post is the most reliable network in India. They ship to more than 213 countries and charge exceptionally low shipping costs abroad. Additionally, you can choose between air parcel shipping or their EMS fast post service, depending on what is most suitable.
TNT India is known throughout the world for its quick shipping capabilities. They provide a variety of services in India, including quick shipment, customs clearance, and pick-up at the door. The finest thing is that they offer customised prices to regular shippers. The USA, Australia, Canada, China, Germany, Italy, the Netherlands, Singapore, and a few other countries are among its delivery destinations.
Conclusion
As the world recovers from the curse of the pandemic, unprecedented growth in international shipping is likely to be seen in the upcoming years. E-commerce companies and several e-tailers who have suffered heavily due to the pandemic will now have opportunities to recover from losses, by choosing the best international shipping partner for sending couriers from India to different nations, at affordable rates.
For efficient management of the supply chain for all your international shipping needs, you can also partner with top shipping aggregators in the business, such as NimbusPost, which is dedicated to offering AI-powered logistics solutions to multiple e-commerce businesses in the country and across various South Asian and Europian countries, under the service offered by their fully integrated platform, NimbusGlobal.
