Tuesday, 09 July 2024
The recurrent Houthi attacks in the Red Sea have generated major disruptions in the recent Supply Chain landscape.
Rising Red Sea Risks Drive Up Shipping Costs and Insurance Premiums
Houthi geopolitics in the Red Sea are challenging the whole global supply chains. Ships now navigate the longer route around Cape of Good Hope, abandoning the quicker Suez Canal passage. This significant detour, coupled with the need for increased capacity, strains the already stressed system, pushing freight rates back to near-pandemic highs. Insurance premiums for shippers have also skyrocketed. These combined factors create unexpected costs for shippers, becoming the new normal and impacting consumer prices worldwide. (BNN Bloomberg)
Mitigating Shipping Challenges with Qwiik
While the shipping industry has always grappled with price fluctuations and vessel delays, in today’s climate, efficiently acting upon a vessel’s final arrival date is even more crucial than ever. Recognizing this critical need, Qwiik has developed the most advanced Agency solution. This translates to swift shipment processing in mere minutes. Through digital documentation and payments, Qwiik streamlines operations for faster and more accurate handling. Ultimately, this helps companies shield themselves from unforeseen costs. By leveraging Qwiik’s innovative solutions, you can navigate the current complexities of the shipping landscape with greater efficiency and mitigate the impact of rising costs.
Navigating a Challenging Environment
Shippers facing today’s challenging environment can extend beyond Qwiik’s solutions and explore alternative actions. Optimizing logistics by utilizing various modes like sea freight, air, train, or a combination, can help secure a more reliable and resilient supply chain.
When it comes to managing highly fluctuating costs, renegotiating contracts with carriers is always an option. However, having a diversified procurement strategy often proves to be a more strategic approach. Focusing on maintaining long term relationships directly with a few shipping lines in order to build respective trust is paramount. In parallel, choosing shorter term contracts based on price and space commitment via strong freight forwarders can help balance and optimize customers options.
More information: Qwiik.com
Contact us: Contact us – Qwiik
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