It’s hard to ignore that 2022 wasn’t the best year for shippers. Unfortunately, the same problems of labour shortages, market volatility, and rising fuel prices don’t seem to be going anywhere this year. Many in the shipping industry have struggled to maintain schedules, customer satisfaction, or on-time shipping. Of course, this isn’t ideal in the slightest, but there is some hope. Business owners are looking for ways to develop long-term solutions, adopting tech strategies to help them through these unprecedented territories.
If anything is clear from the last few years it’s “anything can happen”. With the pandemic and the Ukraine war, being able to adapt quickly and integrate other solutions is imperative. So, with this in mind, we have compiled the best three tech strategies for shippers this year. Let’s jump right in.
Utilise the denied party list
In short, a denied party list is an umbrella term used to describe the list of trading partners which are off bounds. Think, watch lists, sanction lifts, restricted party lists, concern lists, and embargoes countries.
The conflict in Ukraine has highlighted the need for vetting trading partners and utilising denied-party screening solutions. Various geopolitical and economic tensions can change the global trade environment so quickly. In a world that can change so drastically in such a short amount of time, shippers are facing increasing pressure to keep up with various dynamics, form the correct trading relationships, as well as making sure that various suppliers, customers, and partners aren’t on sanction lists.
Globally, there is heightened security, rising fines, complex sanctions, and regulatory regimes. Technology can help with compliance in all aspects, and making the most of the denied party screening will ensure that you aren’t conducting business with bad actors.
When companies conduct business with countries, companies, or people on this list, they could be subject to fines, closures of financial processing, and prosecution. Not to mention, your shipping company could be denied the right to import and export goods. It’s worth keeping on top of to ensure that you are in the clear.
A little tip would be to audit all your records of compliance to ensure that you aren’t at risk, too.
Make the most of global trade intelligence
A key theme for 2023 is vast movement and changes, something that can be difficult to keep on top of. So, the ability to find alternative markets, trade lines, suppliers, and customers is an appealing advantage for your company. This is especially true when the global supply chain is so unstable at the moment.
It’s likely, as a shipper, you are very knowledgeable about your supply chains, but the global supply chain may be something of an enigma to you. Don’t worry, you don’t have to memorise this yourself, you can just utilise the global trade intelligence technology.
Global trade intelligence solutions are essentially ways to see the vast array of global traders that you could import from or export to. It’s also a great piece of tech to integrate into your company to help you make more informed decisions, automate analysis, and identify market shifts.
Many shipping companies also make the most of global trade intelligence solutions to help them make the most cost-effective decisions, especially in terms of transportation and routes. Every shipping company should make the most of global trade intelligence.
Use Harmonised Tariff Schedule and Harmonised System Classifications
If you’ve been in the shipping industry for a while, you’ll likely know how important it is to keep an eye on every aspect of logistic costs and tariffs – they can change your profit margins exponentially.
Thankfully, there are technologies for Harmonised Tariff Schedule (HTS) and Harmonised System (HS) classification and all cost calculations. These pieces of tech can allow shippers to analyse all their finances for their current and new trade networks.
In the past, classification methods were incredibly labour-intensive. It originally required research in hard copy and intensive research. These pieces of technology make these difficult tasks much easier, faster, and more accurate. Essentially, up-to-date tariff information from all around the world is accessible with a cloud-based solution. It is a surefire way to ensure shipping companies choose the best supply chain, helping to maximise their profit.
You’ll be aware that the tariff landscape is everchanging, so this type of technology is so worthwhile using. Also, HTS and HS keep shippers up to date with the fluctuating costs of duty and tax – something that is especially important during global unrest and changing markets.
These are three pieces of technology that will help completely change your shipping company. Shippers are under immense pressure and troubles, and being able to use these important pieces of tech will help you navigate the industry, as well as maximise profit.
Regardless of your business size or age, these three things will help raise you.