Due to a long list of unexpected events, including geopolitical crises, trade wars, the pandemic, and many others, the freight market is experiencing a period of volatility that threatens to derail supply chains across the globe. Because of the sustained volatility in the market, you have prolonged transit times, soaring costs, and constant supply chain disruptions. Although the market’s volatility is unprecedented and scary, you can effectively navigate it with the right tools and supply chain model. One such tool or technique is the application of real-time data in the freight/shipping process.
Understanding the Impact of Real-Time Data in a Volatile Freight Market
Imagine making all necessary shipping arrangements, where you have outlined the cost of transportation, evaluated all the necessary rates, planned out your preferred schedule, and how long it will take to ship the freight. Only to commence operations and realize that what you ironed out a few days ago suddenly doesn’t work anymore due to a change of rates, disrupted schedules, or some logistical anomaly.
The impact on your supply chain management may vary depending on how robust it is, but one thing is sure: it will cause disruptions that will inconvenience or slow down your operations. The nature of the freight market volatility is such that information is hard to come by and when they do come, they are often very complicated and could take some time to decipher. For instance, the primary method of distributing change in freight rates and schedules is done through complex spreadsheets that could take time and some expertise to decipher. Sometimes, even the rates that are made available are still lagging the market.
The entire business logistics management in the freight market can be tedious and time-consuming. Despite the many impacts of technology, the freight market largely fails when it comes to leveraging technology to distribute and simplify information and payment processes. Amidst all these, gaining access to real-time data in the current freight market will be an absolute game changer for your freight operations. However, there are challenges.
Challenges to Accessing Real-Time Data In a Volatile Freight Market
Although the concept of real-time data is attractive, especially when dealing with freight market volatility, accessing it comes with its fair share of challenges for freight forwarders, shippers, and carriers. Some of these challenges are:
Challenges to Accessing Real-Time Data In a Volatile Freight Market
1. Poor-Quality or Inaccurate Data
In the freight market, everyone has something to say. Because it is difficult to get uncomplicated information from the source, it can sometimes be confusing, especially when you are presented with multiple data points. The problem with poor quality data is that it tends to derail your operations when you work with it, especially when it concerns regulations and compliance. Curbing this will certainly entail identifying a source you can trust. This way, you can tune out the other sources or information.
2. Data Fragmentation
A freight operation has many parts working together. In the freight market, getting all the information one needs, such as to ensure no hiccups occur across the freight forwarding process, is often difficult. This is because data across the freight market is scattered across different sources and databases. You will need to find a way to consolidate all data into one system before you can accurately depict the information you desire.
3. Technology Limitations
As we mentioned earlier, despite the vast nature of the market, many parts of it still lag behind in adequately leveraging technology to disseminate information and collect payments. You may have all the technology in place, but when the information you need comes from a much slower source, you can do nothing about it. Sometimes, you still have to contend with poor internet connections and system compatibility when that is through. All these slow down the process, affecting your access to real-time data.
4. Carrier Secrecy and Data Privacy
Carriers are often reluctant to disclose information about their operations to avoid revealing trade secrets. Data privacy is also a key factor in the refusal. Freight can sometimes contain private information such as shipping details, cargo type, and operational metrics, making data harder to obtain.
How Real-Time Data Can Help You Navigate a Volatile Freight Market
Despite the challenges in getting real-time data in today’s volatile freight market, introducing real-time data to your shipping operation will give you control over a market that tends to shift as the day changes. Here is how it can help you navigate the volatility of the freight market.
How Real-Time Data Can Help You Navigate a Volatile Freight Market
1. Visibility and Transparency in The Market
Access to real-time data gives you visibility into market-wide operations and conditions and helps simplify global supply chains. Suddenly, you are no longer walking in the dark or playing guessing games about what the market is saying. This visibility keeps you updated on changes in demand, capacity, rates, schedules, and geopolitical situations.
With visibility, you can expertly track, plan, and make changes immediately as needed. This will greatly limit the impact of the market volatility on your operations. More importantly, it gives you a head start with the competition because you can make faster and more informed decisions. Sometimes, days before the others can.
2. Dynamic Pricing and Route Optimization
When your freight operations and supply chain models have access to real-time shipping, you can offer your customers a more dynamic pricing option, which allows you to serve them better and enhances your services. With dynamic pricing, your services can reflect the current market conditions and more stable pricing. Your customers will be happy to pay if you can guarantee effectiveness.
Traditional routes may not always be the best, especially considering the current security threats plaguing the freight forwarding industry. With real-time data, you can find and access other routes that will still get you to your destination and ensure your transit time is impacted minimally.
3. Proactive Risk Management
The issue with freight market volatility is that it often leads to unexpected situations. Many times, these situations can be damaging to your freight operations, which makes them undesirable. With access to real-time data in your freight operations, you have the ability to proactively respond before it becomes a problem.
Proactively resolving undesired situations that may arise in the cause of the freight operation makes your operation much more effective and eliminates the probability of supply chain disruptions across the board.
4. Supply Chain Agility and Flexibility
Because the market is so volatile, supply chains are bound to suffer. However, with real-time data, you can offer your clients a chance to have much-needed flexibility and agility in their supply chains. This is primarily because their operations can adjust and adapt on demand or as needed.
Real-time data also allows you to effectively and accurately monitor market trends and competitor activities in real-time. With this, you can capitalize on emerging opportunities, optimize resource allocation, and maintain a competitive edge in a volatile freight market.
5. Customer Satisfaction
Real-time data in an increasingly volatile freight market enhances operational effectiveness and stability. This, in turn, allows you to better meet customer demands, which in turn gains you their loyalty and gives you a competitive advantage.
How to Access Real-Time Data with Terminal49
Earlier in the article, we mentioned the vast data sources in the freight industry. We also explored the issues with poor quality data, data fragmentation, and the limited role of technology in the freight market. All of these make it challenging for freight forwarders and supply chain logisticians to access real-time data and insights.
You will struggle to access 'true' real-time data without properly tackling any of these headwinds. However, at Terminal49, we have the solution. We collect, streamline, and integrate data across various segments, including shipping lines, marine terminals, and railroad operators, into one easy-to-use dashboard and data pipeline. We also ensure every data point is accurate and up to date by verifying and standardizing every data point.
Now, you have real-time data at your fingertips. Create an account today to get started.
