Beyond Freight Costs: 6 Factors Influencing Your Customer's Decision

The recent capacity crunch in sea freight, stemming from the Red Sea crisis and other disruptions, highlights why cost is no longer the sole factor for shippers. Here's a deeper dive into the crucial elements shaping decisions in the industry today:

1.Transit Time:

The rerouting of vessels around the Cape of Good Hope has significantly increased transit times. This delay affects the entire supply chain, leading to longer lead times and potential stockouts. Customers now expect not just the fastest delivery but the most reliable option available.

This means forwarders need to go beyond simple rate comparisons and invest considerable time in ensuring nothing goes wrong with delivery timelines. They must demonstrate thorough diligence in combing through an extensive array of carrier options to guarantee the best choices for their customers, which in a simple way, should be available for them to compare readily in one place.

2. CO2 Emissions:

Environmental concerns are increasingly important. The alternative route around Africa not only takes longer but also results in higher CO2 emissions. For instance, a large container ship traveling from Shanghai to Hamburg produces 38% more CO2 via this route.

Companies striving to reduce their carbon footprint must weigh the environmental impact alongside financial costs. Forwarders need to be prepared for potential cost offsets related to emissions in the