The freight capacity in that period is going through major crises, so many suppliers and importers seek to increase their freight capacity, and the aim is to increase their ability to ship the largest possible volume of goods without problems, especially since the freight capacity faces major problems and restrictions, and until the freight capacity is increased there A number of strategies to be followed, and in this article we will show you all a number of Strategies for Expanding freight capacity transport.

Increasing the Capacity of Freight Transportation

freight capacity

In order to be able to increase the freight capacity when shipping goods, you need a number of steps ,strategies and shipping tips that enable you to do so.

The following are the most important things that may help you in Increasing the Capacity of Freight Transportation:

  • Adjust your expectations about transportation and the supply chain forecasting. Your expectations should reflect reality and start planning your vision accordingly in order to adapt to the transportation crisis that may not disappear until after a long time.
  • Prepare your KPIs as well as your budget and commitments to align with the new standards, as old or historical standards no longer work in the current circumstances.
  • Adjust your supply chain model for your business so that it reflects the realities of the current supply chain, and you should make this model more focused on transportation.
  • Increase your visibility by monitoring the shipment status and thus improve logistics operations and gain customer trust and satisfaction.
  • Optimizing transportation with flexible transportation planning, scheduling and dynamic routing, which will help you boost timely delivery as well as reduce labor costs.
  • Promote and strengthen carrier partnerships, which will help you understand what your company needs to do to become more efficient.

Creating Strategies for Expanding Freight Transport Capacity in Saudi Arabia

There are a number of increasing disruptions facing supply chains during that period, threatening the ability to transport goods, and this is evident in a number of Arab countries such as Saudi Arabia.

In order for us to expand the cargo transportation capacity in the Kingdom of Saudi Arabia, there are a set of basic strategies that must be incorporated and relied upon. 

Saudi Arabia is working hard to expand its cargo transportation capacity, and the Saudi government is giving the transportation and logistics sector great attention to improving the situation. 

Also, in the recent period, large capital has been allocated to expansion plans with an increase in government spending on infrastructure and transportation, which will contribute to Expand Freight Transport Capacity in Saudi Arabia.

Economic Consequences of freight capacity

Because of the huge bottlenecks faced by freight capacity, there are many economic consequences, and the shipping industry has taken a severe hit after the Corona pandemic,

And it has negatively affected freight capacity. The following are the most important Economic Consequences of freight capacity:

  • Threat to global economic growth.
  • High shipping costs, as freight rates for freight have doubled since the beginning of the year until now.
  • Failure to meet demand and rising consumer prices.
  • Declining demand for goods.
  • The massive rise in container freight rates.
  • The scarcity of containers and the absence of empty containers, whether for import or export.
  • Increasing the arrival time of goods from Europe and China regions due to the lack of empty containers.

The Problem of Defining Freight Capacity

One of the other problems facing freight capacity during that period was the difficulty of defining Freight Capacity.

Therefore, shippers need to be more flexible, and this can be done by following more than one method, extending delivery periods and offering night transportation services and special delivery.

It will also help to try to provide the feature of shipping on non-peak days, as well as using the communication companies to develop your shipping schedules.

Freight capacity pinch will continue into 3rd and 4th quarters, 3PL forecasts

freight capacity

There is an expectation by third-party logistics (3PL) that Freight capacity challenges will continue until the third and fourth quarters of this year.

Many also expect the freight crisis and Freight capacity challenges to continue into the first quarter of the new year.

Maersk expects the continuation of the freight market crisis until at least the first quarter of next year, as a result of the growth in global demand for container trade faster than previously expected.

She also predicted that the global demand for containers in 2022 will increase by 2-4%, and the largest shipping line in the world sees that the global demand for sea freight will grow between 7-9% in the new year.

Old habits must change to achieve freight sourcing success

The best solution to meet that crisis and expand freight capacity is to get rid of old habits that will require shippers to fundamentally change their supply strategies.

They will also need to make cooperative partnerships with the best shipping companies to help them get out of this crisis and face it, thus freeing their companies from danger in a large proportion.

As the old habits used to expand the freight capacity and the various freight operations no longer work in light of this huge crisis and the great challenges facing the freight capacity.