Challenges grappling sea freight companies

As their name implies, sea freight companies engage in the shipping of goods and cargo from one seaport to another. Sea freight transport entails the shipping of bulky goods across the seawaters, which might not be possible through other alternative means of freight transport such as road, rail and air.

Despite this major advantage, it is important to note that sea transport companies face myriad challenges in their normal operations. This article looks at some of those challenges:

Piracy at sea

Many sea freight companies have suffered significant losses due to attacks by pirates who steal and destroy the goods on transit. In some cases, the pirates may hijack the cargo vessels and demand hefty amounts of cash as ransom, which intimidate the collapse of these sea freight companies that fall victim to sea piracy.

Due to the piracy threat posed by the sharp rise of pirate mobs, insurance coverage firms that provide cover for goods being ferried across troubled waters have hiked their premiums, meaning sea freight coverage is quite costly much to the dissatisfaction of sea freight companies. At the end of the day, sea freight transport is a costly business to run for many carriers.

Climatic conditions

Sea freight companies also experience severe losses due to harsh climatic conditions such as sea storms and oceanic tides. This frequently affects the navigation of the cargo vessels resulting in delays and ensuing spoilage of perishable goods such as horticultural products. When such products go bad at the hands of the sea freight companies, obviously they are forced to cover the losses. This contributes to huge sums of money being channeled into refunds and compensation thus threatening the economic stability of these transport companies.

Stiff competition

Freight companies operating across the seas have always been exposed to stiff and apparently unfair competition from other means of transport such as rail, road and air. For example, if you were to compare the cost for transporting goods between railway and sea you will notice that rail transport is much less expensive compared to sea transport.

Although sea transport companies might like to provide competitive pricing in response to fellow other competitors, they cannot because sea transport involves many challenges compared to rail and other transport means. As a result, many customers due to the competitive pricing will opt for other means of cargo transport apart from sea and this threatens the livelihood of sea freight companies.

To learn more, contact a company like Jayde Transport with any questions you have.


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