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Statista reports that Malaysia handled approximately 26.66 million containers in 2020 and recorded a total cargo throughput of 140,396 tonnes in the second quarter of 2022 alone. Despite being a major maritime logistics hub in the SEA region, the container, sea freight, and international freight management challenges in Malaysia are daunting.
Recent reports reveal that Malaysian maritime logistics are suffering from three major concerns and that the freight sector is still reeling from the aftereffects of the global pandemic. The three challenges include – container and vessel capacity shortage, skyrocketing landside and depot gate charges, and high detention and demurrage (D&D) costs. The capacity issues are directly leading to the shortage of truck drivers, distribution challenges, and spawning higher shipping and trading costs.
Currently, the cost of a new 20ft container in Malaysia is almost US$4,000, and this is apart from the other freight and logistics costs. Once the goods have arrived at the port, ensuring timely unloading, safe and secure movement toward the warehouse/destination hub, and orchestrating efficient delivery – the problem set is huge.
All these trends are driving businesses toward automation and digitized management of assets, such as shipments, containers, vehicles, and workforces.
Below, we discuss how automated container tracking software in Malaysia can help businesses overcome all the challenges shared above. We also share the different benefits of investing in a smart freight management system that can boost the efficiency of freight operations and reduce costs significantly.
Container tracking software offers a unified and real-time view of the shipments/containers across international and domestic borders via a single dashboard. Businesses can get automated alerts/messages for key milestone events and predictive alerts for detention and demurrage that help reduce costs.
Businesses using software for container tracking in Malaysia can get direct access to multiple advanced functionalities, such as unified shipment tracking, automated shipment lifecycle management, analysis of transshipment ageing, carrier, volume, and more. They can get granular insights into freight movements, and freight status and also leverage predictive analytics for orchestrating more efficient consignment pickup and distribution.
Before we move on to discuss the benefits of container tracking and how businesses can reduce freight management costs with it, let us have a quick look at the various challenges in freight management.
The poor visibility over container movements and the inability to have granular insights on shipment movements lead to a partial understanding of freight movement and plan pickup and distribution based on hunches. Further, the majority of insights into shipment movements rely on manual calls and emails businesses have to make to individual carriers and logistics partners.
Hence, the pickups and cargo unloading are rarely aligned, and businesses end up bearing higher operational costs.
Demurrage and detention are major concerns for businesses as they come unannounced. The inability to have granular insights into the shipment status leads to poor awareness about the exact date of arrival at the port, and containers might stay loaded for longer.
Likewise, port congestion and ship faults can also delay the shipment arrival and unloading. Furthermore, in case the containers have arrived earlier than expected, and the goods are still not loaded because there is no communication regarding early arrival, the businesses end up paying fines in the form of detention and demurrage.
Another critical problem is the shortage of container or vessel capacity, which means businesses often struggle with freight procurement, vessel booking, and spot inquiries. Manual procurement restricts the number of options a business can have and also leads to inefficient bookings.
Traditionally, there is no unified dashboard-like interface for checking the bookings, shipment status, freight procurement, freight management, detention, and demurrage management and collaborating with multiple stakeholders. As the businesses don’t have any access to real-time insights on shipment/container status, they are unable to share this information with the end customers, which degrades the CX as well. Any type of shipment delay lead to increased queries, and loss of customer trust and affects the business profitability.
Next, we discuss how using AI-powered container tracking software in Malaysia and coupling that with an end-to-end international logistics management system can overcome these challenges.
The software for container tracking helps businesses track and get the status of all the shipments in real-time. They can get automated alerts for key milestone events, such as passed XYZ port, etc. Businesses can also leverage automated workflows to send these automated alerts to multiple stakeholders in the system in a personalized manner.
This ensures:
Automated container tracking software offers predictive insights and alerts for effective and efficient management of detention and demurrage costs. Also, these predictive alerts enable businesses to orchestrate the last mile activities from the port as per the real-time status of the shipment.
Smart container tracking solution in Malaysia streamline the collaboration and communication among multiple stakeholders, such as custom housing agents (CHAs), line forwarders, and freight forwarders. The businesses get a feature-rich dashboard for the integrated management and better collaboration across and within their teams. This enhances transparency, agility, and productivity across the supply chain operations.
Freight forwarders and manufacturers deal with multiple containers and multiple shipments, and each one of those goes through a distinct life cycle, thereby increasing the complexity of international cargo operations.
A shipment goes through the following lifecycle stages:
Smart container tracking software solutions in Malaysia come with inbuilt lifecycle management features. Thus, the freight forwarders are kept updated about different life cycle events for multiple shipments.
Another crucial benefit offered by the software for container tracking is predictive ETAs for multiple stakeholders. The businesses can share these ETAs with end customers to keep them informed about the real-time arrival updates of their consignments. This not only elevates the overall CX, but it also helps reduce customer query calls, helps orchestrate highly efficient last mile, and makes the entire supply chain more transparent.
AI/ML-powered software comes with in-built data analytics and reporting capabilities that help businesses get actionable data insights and improve their freight management and orchestration processes. Businesses can get access to crucial data, such as how many shipments from a particular shipping line were delayed, which shipping line offered the most profitable services, etc.
While businesses can unlock multiple benefits by using smart container tracking software in Malaysia, coupling container tracking with end-to-end freight management solutions can help amplify the results and cost savings.
Businesses can integrate the international logistics management dashboard with their existing tech infrastructure and unlock higher efficiency, more reliable international logistics and much more. They can leverage the in-built workflows for carrier management, spot inquiries, RFQ management, and freight procurement, across multiple shipping lines and get more profitable options for sending cargo.
Shipsy’s AI-powered EXIM solution presents numerous advantages to businesses. It facilitates the monitoring of incidental expenses, enables transparent logistics management, and aids in accomplishing business goals.
By utilizing this platform, businesses can partner with over 300 freight forwarders and more than 55 shipping lines, while also being able to effortlessly keep track of demurrage and detention. Furthermore, the platform’s unified shipment tracking functionality provides businesses with real-time visibility into container movements and shipment progress. In addition, it integrates with over 40 3PLs with timestamps, allowing for real-time planning.
Shipsy’s intelligent shipment tracking solution helps businesses to:
Shipsy’s freight procurement solution streamlines business operations through an integrated dashboard that consolidates stakeholders, communication, and processes. This dashboard unlocks numerous potential benefits, such as enhanced efficiency, increased control, cost savings, and improved customer service, and helps businesses achieve the following:
To begin using Shipsy’s container tracking software in Malaysia or to learn more about our comprehensive international freight management solution, please contact our experts and schedule a personalized demo today!
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