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The Benefits of Outsourcing Transportation To A 3rd Party (3PL)

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Transport trucks

Outsourcing the transport element of logistics has become more popular in recent years for a good reason. 3PLs specialise in logistics and have become extremely effective at managing the transport aspect of the industry. The range of different benefits 3PLs provide is impressive and these benefits are what we are going to be discussing below in the context of transportation.

Efficiency in both time and price

Firstly, let us talk about efficiency the primary benefit of 3PL is the increased efficiency that they bring to operations. For example, a 3PL can leverage existing technology in its network to optimise routes and speed up delivery times.

However, the benefits do not end there 3PLs also come with the advantage of having pre-established relationships with carriers meaning they can effectively negotiate improved rates and bring down the total cost of the operation.

3PLs scale and evolve with your business

Over time you may find that your business has grown and evolved and as a result, the transportation needs of the business will also change. The second benefit of 3PLs is that it supports the growth of your business by offering flexibility. As your business expands, 3PLs can adapt swiftly to meet the changing transportation requirements.

Improved Customer Service

Outsourcing transportation to a 3PL can also help improve customer service. 3PLs have the expertise to manage complex transportation needs, including multi-modal transportation, cross-border logistics, and last-mile delivery.

This helps to ensure products are delivered on time, in the right condition, and to the correct location. By providing reliable and efficient transportation services, a company can improve its customer satisfaction and customer loyalty.

A larger network

Another advantage you can leverage by partnering with a 3PL is the size of their network. This allows you to transport your products to a broader range of locations with minimal additional investment from your business. Furthermore, a larger network enables 3PLs to manage transportation risks, such as delays, more effectively. In case of a route closure or blockage, a 3PL with a well-established network can quickly and efficiently reroute the transportation of goods.

Concluding thoughts

Outsourcing transportation to a 3PL offers a range of benefits for businesses of all sizes. By leveraging the expertise and resources of a 3PL, companies can reduce costs, increase efficiency, and improve customer service. This can help businesses stay competitive in today’s rapidly changing economic environment.

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Logistics

Affordable, Reliable & Highly Tailored Overnight Road Services Delivers With Superior reach & in Record Time

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African man near transport trucks

In a world where businesses demand swift and dependable logistics solutions, Seabourne Logistics is leading with its innovative ONR (overnight road service), setting new industry standards, delivering goods punctually and rapidly expanding its reach to cater to a rapidly growing clientele.

Designed to provide quick and efficient deliveries throughout South Africa, reaching destinations typically accessible solely by air, the overnight service gives clients a competitive edge in today’s fast-paced market.

“The success of our overnight road service can be attributed to our dedication to quality, reliability, and cost-effectiveness,” says Garry Harris, Director at Seabourne Logistics ZA. “We understand that our clients’ success depends on their ability to have goods delivered on time and within budget, and we take that responsibility very seriously.”

Transporting goods overnight by road presents numerous benefits. The foremost advantage is its cost-effectiveness, offering potential savings of up to 50% compared to airfreight services. Moreover, it excels in cargo handling, boasting greater space and flexibility than airlines. This facilitates the transportation of hazardous materials and liquids, which may be subject to stricter airborne regulations.

“While road transport does have its limitations, it is considerably more accommodating, permitting the carriage of items like aerosols or lithium batteries that may be restricted on flights. Importantly, our service consistently upholds high quality standards, ensuring minimal disruptions,” continues Harris.

Seabourne have created distribution hubs and fulfillment centres which are strategically positioned across the country to cater to the growing clientèle. Not only has it increased the service’s reach, but also allows for more efficient transportation networks.

The company has invested heavily in the development of this service.  All linehaul vehicles are equipped with long-range tanks and anti-fatigue cameras that are consistently operated by a double crew, whose activities are closely monitored by a 24-hour control room.

Iveco Turbo Daily 50C 70 vehicles with reinforced heavy-duty tow bars and 1.5-ton trailers are operated within their warranty period on the overnight road service – ensuring reliability. The fleet is subjected to bumper-to-bumper service checks every second to third day, depending on the rotation schedule.

The vehicles have dimensions measuring 4500 (length) x 1700 (width) x 1900 (height), with a carrying capacity of 2.5 tons and 16 cubic metres of space. The trailers have dimensions of 3300 (length) x 1600 (width) x 1700 (height) and can carry 1-1.5 tons with 9 cubic metres of available space. To enhance their robustness, the rear sections of the vehicles are equipped with aluminium cladding walls and Marley-type floors, complete with sunken securing points.

“Businesses, driven by price sensitivity and competition in service delivery, are increasingly opting for this intermediate service that ensures next-day delivery,” explains Harris. “It holds great value in industries like the automotive sector, where the quick movement of parts is crucial. It offers convenience and flexibility, allowing for multiple deliveries in a single trip to remote places often left out from next-day delivery. Moreso, we’re constantly working on expanding our service reach and footprint across the country, providing our clients with a cost-effective solution,” concludes Harris.

The growing logistics company moved to a new and improved facility in November, doubling their warehousing space and preparing to further enhance their reach and maintain their excellent personal service.

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Freight Forwarding

Air vs. Maritime Freight Transportation

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Plane flying over cargo ships

Among the popular forms of transport within the freight industry, two of them are seen as extremely efficient with regard to transporting goods over long distances. These forms of transport go by the name of air and maritime freight transportation. Even though they’re very different, they can work really well together, as we’ll explore later on in this article.

Table of Contents

In this article, we’ll be looking at:

What is Air Freight Transportation?

Plane in front of cargo ships with another plane flying over

Air freight transportation, often referred to as air cargo, is the expedited movement of goods via aircraft. This mode of transportation is favoured for its speed and reliability, making it the essential choice for businesses dealing with time-sensitive cargo.

How Air Freight Transportation Works

The process of air freight transportation involves the following key steps:

Step 1: Cargo Acceptance

Businesses deliver their goods to an airport cargo terminal, where the items are inspected, documented, and prepared for flight.

Step 2: Loading and Transport

Once cleared for departure, cargo is loaded onto aircraft, ranging from small cargo planes to jumbo jets, depending on the volume and nature of the goods.

Step 3: Air Transit

The cargo is flown to its destination airport, where it is unloaded and cleared through customs.

Step 4: Final Delivery

After customs clearance, the cargo is transported to its final destination, often by ground transportation.

The Top 4 Benefits of Air Freight Transportation

There are a couple of reasons why people continue to invest in the air freight industry. Below is a list of some of the benefits of air freight transportation.

1.     Speed:

Air freight is unparalleled when it comes to delivering goods quickly. It significantly reduces transit times, making it an ideal choice for perishable or time-sensitive cargo.

2.     Reliability:

Air cargo schedules are highly predictable, thanks to the frequent and regular flight services offered by airlines.

3.     Global Reach:

Air freight connects virtually every corner of the globe, enabling businesses to access international markets with ease.

4.     Enhanced Security:

Airports have stringent security measures in place, reducing the risk of theft and damage to cargo.

What is Maritime Freight Transportation?

Maritime freight transportation, commonly known as sea freight, involves the shipment of goods via cargo vessels across oceans and seas. This method is renowned for its cost-effectiveness, particularly for bulk and non-perishable cargo.

How Maritime Freight Transportation Works

The maritime freight transportation process encompasses several stages:

Stage 1: Cargo Loading

Cargo is packed into shipping containers at the origin port and loaded onto cargo vessels.

Stage 2: Voyage

The cargo vessel embarks on its journey across the sea, navigating established maritime routes.

Stage 3: Port Unloading

Upon reaching the destination port, cargo containers are unloaded, and customs clearance procedures are initiated.

Stage 4: Onward Transport

Goods are transported from the port to their final destination, typically by road or rail.

The Top 4 Advantages of Maritime Freight Transportation

The maritime freight industry has its challenges that need to be addressed continuously, but there are a couple of reasons why it hasn’t disappeared.

1.     Cost Efficiency

Sea freight is often more economical for large or bulky cargo due to its lower shipping rates.

2.     Eco-Friendly

Maritime transportation is comparatively eco-friendly, with lower carbon emissions per ton of cargo transported.

3.     High Capacity

Cargo vessels have immense capacity, making them suitable for transporting vast quantities of goods.

4.     Versatility

Sea freight can handle a wide range of cargo types, from consumer goods to heavy machinery.

How They Can Work Together

In an increasingly interconnected world, businesses often find that combining air and maritime freight can be a winning strategy. Air freight ensures the swift delivery of time-sensitive components or products, while sea freight handles larger volumes of goods more economically. This harmonious partnership can help optimise supply chains and reduce overall transportation costs.

FAQ: Clearing the Air and Water

If we haven’t answered some of the questions you had in mind, have a look at the frequently asked questions below:

Is air freight more expensive than sea freight?

Yes, air freight is generally more expensive per kilogram or cubic meter of cargo due to the speed and reliability it offers.

Can fragile items be shipped via sea freight?

Yes, fragile items can be shipped via sea freight by using proper packaging and stowage techniques to minimise the risk of damage during transit.

How long does sea freight take compared to air freight?

Sea freight takes longer, often several weeks, whereas air freight can transport goods across continents in a matter of days.

Final Thoughts

In the world of freight transportation, there is no one-size-fits-all solution. The choice between air and maritime freight depends on various factors, including the nature of the cargo, budget constraints, and delivery timelines.

By understanding the strengths and weaknesses of each mode and considering the possibility of combining them strategically, businesses can navigate the global supply chain with confidence, delivering their goods efficiently and profitably to markets around the world.

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Freight Forwarding

AI in the Maritime Freight Industry

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Ship carrying shipping containers on the ocean

Technology is continuing to revolutionise industries and the maritime freight industry, one of the popular forms of freight transportation in South Africa, isn’t an exception. The industry is on the brink of another transformation with the potential of integrating artificial intelligence (AI) into the industry.

AI promises to bring some exciting new benefits to the harbour, although we shouldn’t expect the implementation of AI to be smooth sailing, as it comes with its challenges as well.

Table of Contents

In this article, we’ll be exploring:

Let’s set sail.

The Benefits of AI in the Maritime Freight Industry

There are many reasons why people are so excited about AI joining the maritime freight industry at the shore. Below is a list of the most significant.

1. Enhanced Operational Efficiency

The maritime freight industry can get very complicated given that there are so many moving parts. Any opportunity where technology can help simplify the process is welcome, and AI could do just that.

One great example of this is predictive analytics. This allows shipping companies to optimise routes and fuel consumption based on issues like bad weather in real-time. This reduces cost and minimises the overall environmental impact of the industry.

2. Improved Safety

Concerning maritime freight transportation, safety is of utmost importance. Artificial intelligence has the ability to identify potential safety hazards in real time. Hazards such as weather anomalies can be detected, enabling swift responses and reducing the likelihood of accidents at sea.

3. Enhanced Cargo Tracking

With the help of AI, real-time visibility into cargo shipments is possible. You, as a customer, will be able to monitor the status and location of their goods from the harbour right to your doorstep. You’ll know exactly where your product is at all times.

The Challenges of AI in the Maritime Freight Industry

Nothing’s perfect, and the maritime freight industry is no exception. It comes with its fair share of challenges, some of which are listed below.

1. High Initial Investment

A huge issue with implementing technology into the maritime industry is the hefty upfront costs. Smaller organisations may get discouraged because of this, although the implementation of AI may be more cost-effective over the long term.

2. Data Quality and Security

Artificial intelligence relies heavily, if not entirely on data. Making sure that the data is accurate, secure and private is a constant challenge organisations have to deal with. Any data breach can result in severe consequences for both organisations and individuals.

3. Workforce Adaptation

One of the biggest concerns with regard to the integration of AI is how employees would have to adapt. Organisations will have to train their employees to use their newly integrated AI systems which my add more to the initial cost of the implementation. Employees may also resist the change from the traditional system, a system that they’re very familiar with.

Final Thoughts

AI is in a position to completely change the maritime freight industry. Let’s not forget about the challenges we’ll need to overcome to successfully make that happen. Getting excited over benefits such as enhanced operational efficiency is great, but finding ways we could mitigate the challenges as well is equally important. If we can do that, we’re on our way to a more safe and efficient maritime freight industry.

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