Product Updates

Case Studies

Press Releases

## What are Incoterms?

Incoterms a.k.a International Commercial Terms were first developed by the International Chamber of Commerce (ICC) during 1936. These terms have since been used as standard terms in sales contracts for importing and exporting. 

They are also internationally recognized rules that define which party arranges for the payment and handling of goods during shipping, from origin to destination.

However, do note that not every Incoterm is applicable for every mode of transportation.  

Below is the chart that summarises all the Incoterms. 

[Download the Incoterms 2025 PDF](https://assets.cargobase.com/Incoterms_2024_cheat_sheet_dbc9f5eacb.pdf) 

![Incoterms-2024-cheat-sheet-1.png](https://assets.cargobase.com/Incoterms_2024_cheat_sheet_1_5e30ef54f9.png)

## Are there any updates for Incoterms in 2025?
There are no updates for Incoterms in 2025. The latest version remains to be [Incoterms 2020](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/). These terms are roughly updated every 10 years. Hence, we should be expecting the next update in the year 2030. 

## Why is it important to know your Incoterms?
As importers and exporters, knowing the right Incoterms can be very beneficial as it 

### 1. Brings about clarity and certainty
Incoterms help to clarify the responsibilities of both parties, which helps reduce the chances of disputes and delays

### 2. Reduce costs
With a lower level of probability for delays, unnecessary costs can also be avoided.

### 3. Reduce risks
Incoterms also help to lay out who bears the risk at different stages of a shipment, which will help both parties to manage risks more effectively. 

### 4. Simplify communications
By understanding the intricacies, both parties can facilitate clearer communications with each other at any point of the shipment. 

## What are the 7 Incoterms for all modes of transportation?

### EXW:  Ex-Works or Ex-Warehouse

![incoterms chart on EXW Ex Works](https://assets.cargobase.com/EWX_Ex_Works_250ebda08c.png)

EXW (Ex-Works or Ex-Warehouse) places minimum responsibility on the seller and maximum responsibility on the buyer. The seller's only obligation is to make the goods available at their own premises (usually their factory or warehouse), suitably packaged and ready for collection.

**Seller risk**: Lowest

**Buyer risk**: Highest

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### FCA: Free Carrier

![Incoterms chart on FCA Free Carrier](https://assets.cargobase.com/Free_Carrier_41ecacb154.png)

FCA (Free Carrier) divides the responsibilities between a seller and a buyer at a designated location. It falls somewhere between the seller-friendly EXW and the buyer-friendly DAP/DDP in terms of cost and risk allocation.

**Seller risk**: Lowest

**Buyer risk**: Highest

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### CPT: Carriage Paid To

![Incoterms chart of CPT Carriage Paid To](https://assets.cargobase.com/CPT_Carriage_Paid_To_29d30d8d3b.png)

CPT (Carriage Paid To) is an incoterm that requires the seller to transport the goods at their own cost to a named destination. 

**Seller risk**: Low

**Buyer risk**: High

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

### CIP: Carriage and Insurance Paid To

![Incoterms chart on CIP Carriage and Insurance Paid To](https://assets.cargobase.com/CIP_Carriage_and_Insurance_Paid_To_ce1c608461.png)

CIP (Carriage and Insurance Paid To) defines the seller's responsibility to deliver the goods to a carrier, arrange and pay for carriage to a named destination, and provide insurance coverage for the goods during transit.

**Seller risk**: Low

**Buyer risk**: High

**Insurance**: Yes (only during transit phase)

**Freight cost**: Seller bears the most cost 

### DAP: Delivered at Place

![Incoterms chart of DAP Delivered at Place](https://assets.cargobase.com/DAP_Delivered_at_Place_69b7696b90.png)

DAP (Delivered at Place) denotes that the seller delivers the goods to the buyer’s named location, ready for unloading. It places more responsibility on the seller than FCA but less than DDP. It is a popular choice for sellers who are looking to offer some flexibility for buyers while managing costs and risks on their side. 

**Seller risk**: High

**Buyer risk**: Low

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

### DPU: Delivered at Place Unloaded

![Incoterms chart of DPU Delivered at Place Unloaded](https://assets.cargobase.com/DPU_Delivered_at_Place_Unloaded_51d1629196.png)

DPU (Delivered at Place Unloaded) requires the seller to deliver the goods and unload them at the buyer’s named location. It is the only incoterm that requires the seller to unload the goods. 

**Seller risk**: Highest

**Buyer risk**: Lowest

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

### DDP: Delivered Duty Paid

DDP (Delivered Duty Paid) places the maximum responsibility on the seller in an international trade transaction. It essentially means the seller takes care of everything involved in delivering the goods to the named place of destination, which can be anywhere agreed upon by the buyer and seller.

**Seller risk**: Highest

**Buyer risk**: Lowest

**Insurance**: NA

**Freight cost**: Seller bears the most cost 

## What are the 4 Incoterms for sea or inland waterway transport?

### FAS: Free Alongside Ship

![Incoterms chart of FAS Free Alongside Ship](https://assets.cargobase.com/Free_Alongside_Ship_9f677f8d5f.png)

FAS (Free Alongside Ship) denotes that the seller is responsible for delivering the goods alongside the buyer’s vessel at the named port of shipment. The buyer shall bear the responsibility for the costs and risk of loss or damage from that moment.

**Seller risk**: Low

**Buyer risk**: High

**Insurance**: NA

**Freight cost**: Buyer bears the most cost

### FOB: Free On Board

![Incoterms chart of FOB Free on Board](https://assets.cargobase.com/Free_on_Board_4fbd33add8.png)

FOB (Free On Board) is an incoterm that places the responsibility of transferring the goods onto the nominated vessel on the seller, while all subsequent costs and risks become the buyer's responsibility.

**Seller risk**: Medium

**Buyer risk**: Medium

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### CFR: Cost and Freight

![Incoterms chart of CFR Cost and Freight](https://assets.cargobase.com/CFR_Cost_and_Freight_4bcd2d10a5.png)

CFR (Cost and Freight) defines that the seller is responsible for delivering the goods to the port of destination, and for paying the freight costs.

**Seller risk**: Medium

**Buyer risk**: Medium

**Insurance**: NA

**Freight cost**: Buyer bears the most cost 

### CIF: Cost, Insurance and Freight

![Incoterms chart of CIF Cost Insurance and Freight](https://assets.cargobase.com/CIF_Cost_Insurance_and_Freight_557411aac6.png)

CIF (Cost, Insurance and Freight) requires the seller to be responsible for delivering the goods to the port of destination, and for paying the freight and insurance costs.

**Seller risk**: Medium

**Buyer risk**: Medium

**Insurance**: Yes (Only for onboarding on main carriage phase)

**Freight cost**: Buyer bears the most cost 

## What are some of the best practices and tips for incoterms?

While learning the incoterms is good theory knowledge, applying best practices can practically ensure your shipments go smoothly. Here are some of the best practices to take note of:

### 1. Evaluate your shipping goods

Consider whether your goods will get affected in any way in any sort of critical condition. Some of the questions to ask yourselves could be:

- Are they fragile?
- Are my goods perishable?
- Are they of high value and low risk is key?
- Do they require temperature control?

From there on, you should have a clearer idea about which incoterm is best, with the most appropriate risk transfer points and insurance options that will facilitate the smoothest delivery. 

For example, if you are looking to ship out fragile cargo, you might want to consider CIF instead of EXW since insurance has to be covered in this incoterm. Or, if you are shipping sensiive goods with short shelf lives, DAP or DDP could be better incoterms to look at as they tend to facilitate a faster delivery. 

### 2. Ensure compliance

It is always key to know the compliance rules ahead to prevent any scramble at any point of the delivery process. So, be sure to research important import/export information such as restrictions, licenses, and taxes. 

This step will help you select the appropriate Incoterms that facilitate obtaining necessary export documents (e.g., FCA for export clearance or DDP for import clearance). 

### 3. Know your appropriate freight modes

As shown above, not every incoterm covers all modes of transportation. If sea freight is not an option, incoterms such as FAS, FOB, CFR and CIF should not be at the top of mind as they are exclusive incoterms used for sea or inland waterway transportation. 

Choosing the appropriate freight modes could also affect costs, which is also a key factor to consider while determining the best incoterm to use. For example, shipping your goods via air freight with incoterms such as DAP or DDP as the seller could impact your budget.  

### 4. Documentation

Shipping rules and regulations around the world changes from time to time and when new regulations arise, you may need to review or adjust your selected incoterm and associated documentation. 

It is always wise to clearly state your selected incoterm in the contracts, including the named place (if applicable) and any insurance provisions. This step will help prevent ambiguity, confusion, and even legal disputes if things happen to be serious. 

Be sure to also archive all relevant documentation (invoices, customs declarations, insurance certificates, etc) properly for compliance checks, audits or potential claims. 

<ProTip/>

### 5. Consult supply chain experts

Shipping your goods can be very complex and challenging, which can complicate decisions to select the right incoterm. This is when it would be best to consult a supply chain expert who has experience in dealing with shipments and incoterms to help determine the most suitable incoterm in your best interest. 

## Are there any limitations for incoterms?

While incoterms are great at clarifying delivery responsibilities, They do not address the following:

### 1. Payment terms

Incoterms do not cover payment terms. Separate agreements will be needed for this aspect. 

### 2. Product details

They do not identify the prices and the specific goods being sold. Clarifications for these will be required to be facilitated between the buyer and seller. 

### 3. Payment methods

Though incoterms do clarify on who will bear the cost at which stage, they do not determine the mode of payments for any kind of shipments. 

### 4. Ownership or title transfers

Incoterms do not determine when the official ownership or title transfers of the goods shift from the seller to the buyer. A separate mutual agreement on this has to also be facilitated between the buyer and seller. 

### 5. Customs documentations

While incoterms do specify who handles customs clearance, they do not detail the specific customs documents required. Both parties have to align on this aspect in order to prevent any potential bottlenecks or disputes. 

### Legal and non-legal disputes

Regarding legal or non-legal matters pertaining to performance issues (e.g. delays, non-deliveries, etc), Incoterms are not developed to handle them. Instead, robust contracts have to be reviewed and agreed upon by both parties to properly administer these matters should they occur. 


## Liked our guide? Cargobase helps Shippers like you every day!

We trust you found our Incoterms guide helpful! Cargobase helps enterprise shippers, like you, to manage transportation orders, compare spot vs contract freight rates and execute shipments across all freight modes. Our customers see an average of 27% cost savings within 6 months of implementing our solution.

If you would like to learn how Cargobase TMS can help elevate your transportation management processes, feel free to [book a consultation](https://www.cargobase.com/contact-us) with us today. 












































large_Guide to Incoterms 2023 (1).png

medium_Guide to Incoterms 2023 (1).png

small_Guide to Incoterms 2023 (1).png

thumbnail_Guide to Incoterms 2023 (1).png

xsmall_Guide to Incoterms 2023 (1).png

Freight ship in the middle of the sea.png

Even the most seasoned professionals could use a refresher when it comes to Incoterms. This is why we have prepared this guide that provides a simplified overview and some best practices to fully maximize the use of them.

The Incoterms 2025 Guide Simplified to Demystify Shipping

**Singapore, 20 November, 2024** - Cargobase, a logistics technology platform for enterprise shippers, today announced that it has achieved SOC 2 Type II compliance, specifically meeting the Security, Availability and Confidentiality (SAC) Trust Services Criteria. This independent verification underscores Cargobase’s commitment to data security, system reliability and the protection of sensitive information, reinforcing the company’s dedication to setting industry benchmarks in secure logistics solutions. This attestation complements Cargobase’s ISO 27001 certification, further strengthening the foundation of trust our customers rely on.


“We're proud to announce that Cargobase has achieved SOC 2 Type II compliance, demonstrating our commitment to data security and meeting the evolving needs of our clients. Recognizing the growing importance of this requirement within the industry, we've invested in robust security measures to provide our customers with the confidence and assurance they require,” **said Wiebe Helder, CEO at Cargobase**.


“In the dynamic world of logistics and supply chain management, large volumes of sensitive data are exchanged daily,” **said Arnout Wagenaar, Chief Strategy Officer at Cargobase**. “Data security is paramount for our customers, who entrust us with information critical to their operations. Achieving SOC 2 Type II compliance underscores our unwavering commitment to data integrity and protection, thus building trust with our partners and allowing us to better serve the needs of enterprise shippers worldwide.”


#### Understanding SOC 2 Compliance 

The SOC 2 framework is a globally recognized standard developed by the American Institute of CPAs (AICPA). It focuses on Trust Services Criteria, including Security, Availability and Confidentiality to ensure that systems are protected from unauthorized access, reliably available to customers and employees, and that sensitive information remains confidential.

#### What is SOC 2 Type II Compliance?

Obtaining a SOC 2 report involves a CPA audit to attest to an organization’s security controls. It aims to determine whether the controls put in place are designed correctly. 

Type I reports evaluate an organization’s controls at a single point in time, whereas a Type II report examines how well those controls perform over a period of time (typically 3-12 months).

#### What it means for our customers 

This achievement reaffirms Cargobase's position as a trusted partner for enterprise shippers worldwide. By prioritizing data security, we empower our clients to navigate the complexities of global logistics with peace of mind.


large_Blog Images & Graphics (1200x600).png

medium_Blog Images & Graphics (1200x600).png

small_Blog Images & Graphics (1200x600).png

thumbnail_Blog Images & Graphics (1200x600).png

xlarge_Blog Images & Graphics (1200x600).png

xsmall_Blog Images & Graphics (1200x600).png

Blog Images & Graphics (1200x600).png

SOC 2 represents our unwavering commitment to data security, reliability, and privacy compliance for our customers—building trust, enhancing risk management, and setting industry benchmarks in secure logistics solutions.

Cargobase Secures SOC 2 Compliance For Leading Spot Freight Automation & Transportation Management System (TMS)

## Customer Background 

Cascade Die Casting Group (CDCG) is a privately held company with deep expertise in die-cast manufacturing. Founded in 1978, CDCG has grown significantly through strategic acquisitions, enabling the company to expand and operate three High-Pressure Die-Casting Facilities and two Precision Component Divisions, serving clients across the United States and Mexico.

With Cargobase’s seamless road freight management, CDCG efficiently ships hundreds of orders across North America, covering over 530,000 kilometers with multiple providers. This robust logistics network delivers custom-engineered aluminum and zinc die-cast products tailored to the specialized needs of industries ranging from automotive and power tools to electronics, medical equipment, heavy trucks, and gaming.

![CDCG case study - Testimonial.png](https://assets.cargobase.com/CDCG_case_study_Testimonial_79fc28ee0d.png)

## The Challenge

**Inefficient Freight Procurement:**
Contacting 3-4 freight partners for every shipment and waiting for their responses made freight procurement a lengthy task.

**Price vs Reliability:**
Entering a back-and-forth battle with providers to find the lowest shipment price without sacrificing reliability.

**Manual Invoicing:**
Every invoice was processed manually, making it hard to track and maintain consistency between quoted and invoiced amounts.

**Scale Limitations:**
Operations were not large enough to pursue a contract with a single vendor. This single-vendor route also risked exposure to market-based price hikes.

## The Solution

CDCG sought a tool to replace manual freight procurement, avoid lengthy price negotiations, and guarantee the best rates with reliable deliveries.

#### Key Features Deployed:

- **Automated Quote Procurement:** Fully automated workflow to request and compare spot rate and rate cards from vetted providers.

- **Tracking & Visibility:** Our map-based interface shows active shipments, which gives managers full network visibility. Automated tracking integrates with major providers across all modes.

- **Invoice Audit:** Comprehensive audit trails and reporting simplify cost recovery, allowing easy comparison between invoices and quotations from customers and suppliers.

- **Analytics:** Leverage volume, spend, and spot quote insights to negotiate fair rates confidently, identifying your most valuable providers across lanes and freight modes.

- **Centralized Messaging:** Effective team communication and collaboration with a user-friendly interface that keeps everyone aligned throughout the shipping cycle.

- **Quick Implementation:** Cargobase's versatile platform seamlessly integrates with CDCG’s existing systems, data, and workflows.

## Key Results 

Transporting raw materials, equipment, and finished products from 69 pick-up locations, Cascade Die Casting Group has leveraged our solution for sustained growth:

- **Automatic tracking:** The platform automatically generates BOL and shipment tracking, ending needless emails and consolidating tracking in one view, including those from suppliers and external bookings. 

- **26% Cost Reduction:** Cargobase enabled CDCG to reduce logistics spending by 26% with a platform that fosters natural vendor competition. Our clients save time and money as vendors keep rates competitive to win business—minimum negotiation is needed.

![CDCG case study - key results 1.png](https://assets.cargobase.com/CDCG_case_study_key_results_1_771aff64b3.png)

- **Customized quote options:** Dedicated customer success teams provided assistance in customizing quoting options to match CDCG’s specific industry requirements.

- **Increased Productivity:** CDCG can now send quote requests simultaneously to 7+ vendors in minutes. Users can select the best option for each case with all quotations received in a single, easy-to-compare view. Invoice approvals are also streamlined for quick reconciliation between original quotes and invoice amounts.

- **Fast Adoption by Internal Teams:** With a user-friendly interface, CDCG’s internal teams swiftly mastered the platform, learning to become effective from day one.

- **Access to Freight Analytics:** Built-in analytics instantly display the value of securing the best shipment deals. Performance metrics are utilized to negotiate fair rates and identify valuable providers for a competitive edge.

![CDCG case study - key results 2.png](https://assets.cargobase.com/CDCG_case_study_key_results_2_7e115fd21a.png)

## Conclusion 

Through its partnership with Cargobase, Cascade Die Casting Group has transformed its logistics operations, achieving an impressive 26% cost savings, productivity gains, and improved visibility across its supply chain. 

By adopting a comprehensive platform that centralizes procurement, tracking, and invoicing, CDCG has replaced manual, time-consuming processes with streamlined, automated workflows, freeing resources to focus on strategic growth. 

If you’re ready to achieve similar results, Click [Here](https://www.cargobase.com/contact-us) to speak to our experts today.




large_Newsletter Images & Graphics (600x314).png

medium_Newsletter Images & Graphics (600x314).png

small_Newsletter Images & Graphics (600x314).png

thumbnail_Newsletter Images & Graphics (600x314).png

xsmall_Newsletter Images & Graphics (600x314).png

CDCG Cost Savings on Road Freight.png

Explore how Cascade Die Casting Group saved 26% on road freight costs using automated freight procurement, eliminating manual processes and boosting productivity. 

CDCG’s Path to 26% Cost Savings on Road Freight Through Automated Freight Procurement

## Customer Background

Our Customer is a global leader in semiconductor technology and a top manufacturer of microchips powering billions of electronic devices. They drive progress through smarter mobility, efficient power management, and cloud-based autonomous systems. With a presence in 40 countries and a diverse team of over 50,000 employees, including 9,500+ in R&D, they serve more than 200,000 customers worldwide.

Rooted in a commitment to sustainability, the company designs and builds products, solutions, and ecosystems that address environmental and social challenges. Investing in proprietary technologies and an extensive manufacturing footprint ensures supply security and quality for its customers. Their focus is on long-term trends reshaping industries and society, paving the way to a smarter, greener future while pushing the boundaries of what technology can achieve.

![5.png](https://assets.cargobase.com/5_00f2ea79f9.png)

## The Challenge

**Control and Compliance:** 
As shipment volume increased, using emails to secure quotations from providers and obtain internal cost approvals became increasingly challenging. Without a centralized system, it's difficult to ensure that every team of a global organization uses vetted and compliant providers.

**Cost Management:**  
Time-consuming, manual quotation processes contribute to rising operational costs. The lack of quote comparisons resulted in missed opportunities for cost savings, preventing the organization from securing the lowest possible rates for each shipment.

**Visibility and Coordination:** 
Difficulty achieving complete visibility due to fragmented processes and coordination across the shipment cycle impacts efficiency and responsiveness, making it harder to identify bottlenecks and optimize performance.

**Complex Global Operations:** 
With semiconductors in high global demand, managing a vast supply chain across diverse geographies and high shipment volumes presents unique daily challenges. Coordinating the movement of raw materials, components, and finished goods requires precise management to maintain continuity.


## The Solution 
![STmicroelectronics  case study - solution.png](https://assets.cargobase.com/S_Tmicroelectronics_case_study_solution_1149d2c971.png)
In 2018, the Customer partnered with Cargobase to streamline their logistics pipeline and enhance freight management across APAC, which expanded to 26 locations, including locations in EMEA and North America. Implementing Cargobase’s spot freight solution enabled complete compliance control, access to competitive quotes, and greater visibility into their logistics operations.

#### Key Features Deployed:

- **Automated Spot Quote Procurement:** A centralized system simultaneously sends quote requests to selected providers, showing all quoted rates on a single screen. This facilitates spot quote comparisons, reducing overall spending. 

- **Automated Workflows:** Establish individual user permissions, automate approval workflows, streamline order entry to expedite processing, and minimize errors.

- **Control Tower Visibility:** Our map-based interface of inbound and outbound shipment events at various locations gives managers the full picture of what’s coming through the network.

- **Analytics & Reporting:** Track and benchmark provider performance digitally to identify top providers using metrics like on-time delivery and pick-up.


## Key Results
![STmicroelectronics  case study - key results .png](https://assets.cargobase.com/S_Tmicroelectronics_case_study_key_results_62d22bf919.png)
With about 1,500 shipments booked through 55 Logistics Service Providers, Cargobase's platform has helped the company reap the following rewards:

- **27% Cost Avoidance:** By accessing competitive quotes with a quick turnaround, the Customer achieved an average of 27% cost avoidance for their spot freight. Automating the booking of regular shipments further enhanced these significant savings. 

- **Systematic Control and Compliance:** With all teams transitioned from emails to a single platform, regional teams had greater control with set workflows defining shipment booking authorization. Procurement teams could ensure strict compliance with internal policies from day one, ensuring local teams worked only with vetted providers.
Company policy mandated at least 2 quotes per request. With Cargobase, they managed to secure 2.97 quotes per spot request on average across different freight modes (Air, NFO, OBC, Ocean, Road).

- **Better Visibility and Decision-Making:** Dashboards enhanced shipment visibility by providing a holistic view of events, including schedules, documents, approvals; leading to faster decision-making and improved coordination. With access to proprietary operational data, the team could now factor crucial information like transport schedules and provider performance into their decision-making, instead of solely focusing on cost.

- **Improved Collaboration and Communication:** Centralizing the quotation process eliminated hundreds of unread emails, increasing the overall productivity of logistics teams across the regions. By keeping all communication on-platform alongside individual shipment details, all stakeholders could collaborate better and avoid costly miscommunication.


## Conclusion

Cargobase empowered a global Semiconductor Manufacturer to consolidate regional control over spot freight, achieving a 27% cost-saving on quoted shipments. 

Our centralized dashboard provides complete operational visibility, enabling faster, more efficient collaboration and eliminating hundreds of emails along the way. 

Regardless of industry, Cargobase simplifies transportation management. [Click here](https://www.cargobase.com/contact-us) to talk to us and learn more. 

large_Blog Graphics.png

medium_Blog Graphics.png

small_Blog Graphics.png

thumbnail_Blog Graphics.png

xlarge_Blog Graphics.png

xsmall_Blog Graphics.png

Blog Graphics.png

Semiconductor manufacturer achieves control over spot freight, gains complete tower visibility, & saves 27% on shipment costs.

Global Semiconductor Manufacturer Consolidates Regional Control Over Spot Freight

Supply chains are highly susceptible to volatile events and their ripple effects. A prime example is the 2021 Suez Canal blockage, where a single vessel obstructed a crucial trade route, causing an estimated $60 billion in disruptions and delays. As we look toward 2025, the greatest supply chain challenges will continue to be events that cause widespread disruptions globally.

![Supply Chain Challenges 2025.png](https://assets.cargobase.com/Supply_Chain_Challenges_2025_438dc89181.png)

## The Role of Trade Route Disputes in Supply Chain Instability

The current global economy is tremendously interconnected, and trade route disputes alongside geopolitical tensions pose the most significant challenge to supply chain stability. This is most evident in the ongoing US-China trade tensions; tariffs and barriers force companies to rethink sourcing strategies and diversify production locations. 

Trade route disruptions coerce companies to reroute shipments, leading to longer transit times and higher costs. For instance, the Cape Town route, though viable, is slower and more expensive than direct paths like the Red Sea and Suez Canal. **With BIMCO predicting that normal shipping through these key routes will not resume until 2025, businesses should develop adaptive strategies.** Currently, 40% of Asia-Europe trade is rerouted around the Cape of Good Hope, adding one to two weeks to shipping times. Additionally, 90% of container ships previously using the Suez Canal have shifted to this longer route.

Regional conflicts further exacerbate market challenges. Ongoing instability in the Middle East and Eastern Europe continues to affect the flow of goods, energy supplies, and raw materials. Political turmoil not only influences supply chain reliability but also increases global trade's cost and complexity. As businesses navigate these disruptions, they face an increasingly volatile environment where traditional trade routes are frequently compromised.


## How Climate Change Disrupts the Global Supply Chain

Today, a billion-dollar extreme weather event occurs every few weeks. Forty years ago, one happened every four months. From floods and hurricanes to droughts, these events cause widespread disruptions, making supply chains less reliable and more vulnerable. Weather is the cause of 23% of all road delays in the US, costing trucking companies between $2 billion and $3.5 billion annually. **Cargobase notes that disruptions caused by weather events remain a key risk in 2025.**

More disruptions mean longer delivery times, higher costs, and reduced output. Further complicating matters, many supply chains are so complex that manufacturers lack full visibility of all their suppliers, making adapting to climate change a laborious challenge. Each point in the supply chain is a vulnerability, where a single breakdown can create widespread ripple effects.

Supply chains contribute around 60% of global carbon emissions, which are linked to extreme weather events. Reducing carbon footprint lowers greenhouse gases and minimizes the frequency of such events. Hence, prioritizing sustainability could prompt faster deliveries, fewer disruptions, and lower transport costs. Yet companies face the difficult task of cutting emissions in a short time frame to avoid even greater financial losses from a worsening climate.

## Market Shifts Towards Friend-Shoring & Nearshoring

As companies diversify manufacturing to build more resilient supply chains, India has emerged as a key option for friend-shoring, offering low geopolitical conflict and a competitive cost base. However, poor infrastructure remains a significant challenge, requiring time and resources. Meanwhile, Mexico benefits from nearshoring due to the ongoing US-China trade dispute, becoming a favored location for manufacturers serving the US market.

Looking ahead, the interplay between geopolitical strategies and environmental challenges will continue to shape global supply chains. As environmental policies and regulations tighten, companies must invest in green technologies, which can be costly and difficult to implement without disrupting operations.

Additionally, the rise of e-commerce, accelerated by the pandemic, has heightened demand for faster shipping and delivery. This shift places immense pressure on logistics networks to meet growing consumer expectations while maintaining efficiency and cost-effectiveness.

**In 2025, all these dynamics may drive a shift from global supply chains to more localized networks of buyers and suppliers.** Many companies will increase site sourcing and manufacturing closer to end customers to meet evolving demands. These shifts are not just strategic choices but necessities. Businesses must adapt to remain competitive and sustainable in a rapidly evolving global landscape. 

## Skills Gap in Adopting AI & Machine Learning for Supply Chains 

Artificial intelligence (AI) is often portrayed as a magical solution to every business problem, leading companies to develop unrealistic expectations. In reality, AI and machine learning (ML) systems heavily depend on high-quality data to function effectively. The focal challenge for companies will be to source, clean, and manage data that AI systems can use to make accurate and reliable decisions while integrating legacy infrastructures without disrupting operations.

AI technology’s rapid evolution adds another layer of complexity, with game-changing features emerging every few months for all supply chain stages. Companies are often left playing catch-up, trying to adapt and stay aligned with advancements. This constant transformation means that adopting AI and ML demands new, ever-changing skills and expertise, and many organizations may struggle to train or hire the right talent to manage and oversee AI systems productively. **This skills gap can significantly impede successful adoption.**

Cybersecurity is another critical risk. Tech-driven supply chains rely heavily on digital systems, making them vulnerable to hackers and data breaches. A successful cyberattack can compromise not only operations but also sensitive customer and business data, leading to significant financial losses and reputational damage. Businesses planning to adopt AI and ML must prioritize robust cybersecurity measures to protect their systems and data from these escalating threats.

## Automation Across the Value Chain

Technologies enable businesses to rethink supply chain management and reap value from data, but it only has utility when people effectively leverage these tools. This underscores the need to preserve the human element in an increasingly automated supply chain. Companies face tough decisions about the balance between automation and workforce, as well as the potential layoffs that may result. In service-focused industries, where personal relationships are vital, the human touch remains irreplaceable, even as processes become more technological. Ultimately, doing business involves people, and this interaction adds immense value to the end-user experience.

Automation technologies, such as robotics and automated guided vehicles, are becoming standard in warehousing operations, handling tasks like picking, packing, and transporting goods around the clock without breaks. Moreover, warehouse, transportation, and inventory management software automate back-office functions like inventory tracking and order processing. This reduces reliance on human labor for repetitive tasks. 

As automation continues to shape the value chain in 2025, companies must decide how to navigate its impact. Will they replace employees with machines and reduce their workforce, or will they take on the challenge of creating new roles where human workers and automated systems collaborate? **The future of supply chain management depends on how well businesses balance technological advancements with human expertise.**

## Conclusion

As we approach 2025, the logistics landscape is clearly evolving at an unprecedented pace. Cargobase stands ready to help businesses tackle any challenge with our robust, intuitive, and intelligent Transportation Management System. By partnering with us, companies can enhance supply chain resilience, staying ahead of disruptions while navigating a complex global market. At Cargobase, we are more than just a technology partner; we are your ally in building a resilient and agile supply chain. [Contact us](https://www.cargobase.com/contact-us) to learn more!

large_supply chain challenges 2025.png

medium_supply chain challenges 2025.png

small_supply chain challenges 2025.png

thumbnail_supply chain challenges 2025.png

xsmall_supply chain challenges 2025.png

supply chain challenges 2025.png

As we near 2025, businesses face growing challenges in supply chain management. Staying agile & resilient is essential to avoid significant losses.

5 Supply Chain Challenges For 2025

## Background

The customer is a leading global manufacturer of rear-view vision systems for commercial vehicles. With a deep-rooted commitment to innovation and quality, it has grown from a small team to a major force within the industry. Based in South Carolina, the company's state-of-the-art facility houses engineering, research, and design operations serving the Western Hemisphere.

They demonstrate dedication to their employees and a strong focus on technological advancement which has propelled the company to the forefront of the market, earning prestigious awards and certifications. With a focus on safety and innovation, their award-winning products are used in trucks, buses, construction, and agricultural equipment worldwide.

![Testimonial Mekra lang](https://assets.cargobase.com/Testimonial_Mekra_lang_d230e9ea92.png)

## The Challenge

**Absence of a Robust Approval Workflow:**
The manufacturer grappled with inefficient manual approval processes that hindered operational agility and prolonged cycle times.

**Inefficient Freight Procurement:**
The absence of a competitive quotation request process for regular and expedited freight, coupled with a limited supplier pool, restricted cost optimization opportunities.

**Escalating Expedite Costs:** 
The surge in expedited shipments following the COVID-19 pandemic placed significant strain on the company's logistics budget, necessitating a more strategic approach to managing urgent freight.

**Limited Visibility into Cost Recovery:**
Lack of comprehensive reporting and data analytics hindered the effective tracking, allocation, and recovery of logistics costs from customers and suppliers.


## The Solution 

The Company needed a tool that would eliminate manual processes and widen its supplier pool while simultaneously providing cost visibility and efficient freight procurement.
![Mekra lang case study - solution .png](https://assets.cargobase.com/Mekra_lang_case_study_solution_74bf3ccde8.png)
#### Keys Features Deployed:

- **Automated Spot Quote Procurement:** Fully automated workflow to request and compare spot rate and rate cards from vetted providers 

- **Order Approval Flows:** Streamlined approvals, automated workflows, and standardized order entry to expedite processing while minimizing errors.

- **Invoice Audit & Analytics:** Full audit trail and extensive reporting facilitated cost recovery data from customers and suppliers

- **Centralized Messaging:** Enabled effective collaboration and communication for individual shipments throughout their shipping cycle. 

- **Quick Implementation:** Cargobase's adaptable platform seamlessly integrates with its existing systems, data, and workflows. 


## Key Results 
![Mekra lang case study - key results.png](https://assets.cargobase.com/Mekra_lang_case_study_key_results_5ff1609ba6.png)
After six months of implementing Cargobase TMS, the Company experienced significant improvements:

- **20% Cost Reduction:** Cargobase facilitated a 20% decrease in overall logistics spending through automated freight procurement and competitive quotes.

- **100% Expedite Control:** A paperless authorization workflow provided 100% control over expedited shipments, with the added advantage of avoiding 30% of all previous expedites through improved communication with suppliers.

- **Increased Productivity:** By automating workflows and eliminating manual processes, existing teams could work more efficiently without the need to onboard and train an additional FTE, resulting in immediate cost and time savings. 

- **Widespread Adoption by Internal Teams:** The intuitive interface made it easy to use the platform from Day 1, which led to proactive improvements to internal processes.


## Conclusion

Cargobase empowered a vision systems manufacturer to navigate its post-pandemic growth trajectory with confidence. The platform's customizable features, intuitive user interface, and cost-effective plans proved invaluable assets.

This case study serves as a compelling example of Cargobase's ability to optimize logistics operations and propel businesses toward greater success. Ready to optimize your logistics and start saving? [Schedule a free](https://www.cargobase.com/contact-us) consultation to explore how we can help your business reach its full potential. 


large_Vision Systems mekra lang.png

medium_Vision Systems mekra lang.png

small_Vision Systems mekra lang.png

thumbnail_Vision Systems mekra lang.png

xsmall_Vision Systems mekra lang.png

Vision Systems mekra lang.png

Cargobase empowered a vision systems manufacturer to navigate its post-pandemic growth trajectory with confidence.

Vision Systems Manufacturer Achieves 100% Control Over Expedite Shipments

Most companies expect a TMS solution to streamline operations, encompassing tasks such as managing bookings, tracking cargo, handling documentation, and generating reports. However, central to an effective TMS is visibility— a cohesive element that integrates these diverse processes, bridges information gaps, identifies potential risks and ensures the seamless flow of information among stakeholders. This, in turn, allows companies to anticipate and mitigate any supply chain disruptions effectively.

## **The Comprehensive Lifecycle of Ocean Container Visibility**

Visibility isn't just a snapshot; it's about monitoring the entire lifecycle of an ocean container, from planning export flows to managing in-transit exceptions, overseeing arrival and customs workflows, and avoiding detention and demurrage fees. This holistic approach ensures every stage of the supply chain is visible, traceable, and actionable.

### Planning Export Flows with Visibility

Visibility begins at the very start of the supply chain journey—during the planning phase of export flows. Comprehensive visibility allows businesses to leverage historical data on transit times, carrier performance, and route efficiency. This data-driven approach facilitates better decision-making when selecting routes, carriers, and schedules, ensuring the most efficient use of resources and minimizing potential disruptions.

Additionally, operators can access real-time terminal data, such as Earliest Receiving Dates (ERD) and cutoff times, to initiate export operations effectively. Given the frequent changes in incoming vessel schedules, it's crucial for operators to monitor ERD and cutoff times continuously. This vigilance helps prevent detention and demurrage charges at the origin by ensuring containers are accepted within the specified timeframes. 

Such a proactive approach to planning improves the accuracy of delivery timelines and reduces the risk of delays and additional costs. Furthermore, visibility extends to monitoring CO2 emissions, enabling companies to make environmentally conscious choices and comply with sustainability standards.

### In Transit Exceptions

The true power of visibility is realized when it goes beyond merely informing you about the status of shipments. It's about pinpointing the 5 or 10 shipments out of a hundred that are at risk of delays and potential losses, enabling quicker and more decisive action. During transit, real-time tracking allows for the immediate identification and resolution of any exceptions, such as delays or route deviations.

Another key aspect of visibility is predictive insights, including providing accurate estimated arrival times (ETAs), which help shippers understand the causes of disruptions, identify their origins, and mitigate them effectively while there is still time to act. This means potential issues can be addressed before they escalate, ensuring that shipments remain on track and minimizing the impact on the supply chain.

### Arrival and Customs Workflows

As containers approach their destination, having visibility into pre-arrival alerts becomes crucial for initiating customs documentation and procedures promptly. Accurate and timely data on customs clearance status can ensure smooth transitions, preventing unnecessary delays. This heightened visibility helps reduce the risk of hold-ups and penalties, ensuring that all necessary documentation is in order and that regulatory compliance is maintained to avoid any potential bottlenecks in customs workflows.

Accessing information directly from the terminals—rather than relying solely on carrier websites—enables shippers to obtain real-time details about yard locations, truck appointment schedules, and the readiness of containers for pickup at the import terminal. This direct access ensures enhanced operational efficiency.

### Detention and Demurrage Avoidance

Visibility during cargo transfers at terminals is essential for avoiding additional costs related to detention and demurrage. Real-time updates ensure that containers are picked up and returned within the stipulated time frames, preventing fines and unnecessary expenses.

Visibility into terminal operations offers real-time updates on crucial container milestones, such as pickup availability, appointment dates, yard locations, and holds. Additionally, alerts for potential delays, like the Last Free Day (LFD) or cargo rollovers, empower shippers to act decisively and avoid costly disruptions.

For instance, consider a scenario where a company's cargo destined for the UK is transshipped at the Singapore port. If the cargo arrives after the departure of the second vessel scheduled to carry it to the UK, this creates a significant challenge for the company. However, with timely notifications about such potential delays, the company can proactively secure space on the next available vessel. The containers could remain stranded at the transhipment port without such alerts, leading to further delays.

Given the new OSRA compliance requirements, the datasets needed at US importing terminals are constantly changing. It's crucial to continuously monitor the availability of empty return slots for specific carriers and terminals. This vigilance ensures shippers are prepared to file any claims against detention and demurrage (D&D) costs later on, helping to mitigate potential financial impacts.

## **Stitching Data from Multiple Sources**

To achieve this level of comprehensive visibility, integrating data from various sources—such as carriers, terminals, vessel AIS and customs—is essential. Consolidating this information from diverse sources into a single, intuitive dashboard integrated into the TMS allows shippers to access actionable real-time insights throughout the entire shipment lifecycle, from initial planning to final delivery. This centralized platform offers a complete overview, enabling early detection and proactive management of potential issues, thereby minimizing disruptions and enhancing the efficiency of the supply chain.

## **Enhancing User Experience Through Integration**

Shippers are looking for integrated solutions for automating booking workflows and understanding disruptions that impact costs and customer experience. Such integration ensures that all stakeholders are aligned with the same information, enabling prompt and coordinated responses to potential issues.

The collaboration between [Portcast](https://www.portcast.io/) and Cargobase exemplifies this integration, providing shippers with a seamless workflow and robust tools to manage their supply chain effectively.

**Also Read:** [Cargobase and Portcast Forge Strategic Partnership to Enhance Supply Chain Visibility for Clients Worldwide](https://www.cargobase.com/blog/cargobase-and-portcast-forge-strategic-partnership-to-enhance-supply-chain-visibility-for-clients-worldwide)


large_Cargobase Port.png

medium_Cargobase Port.png

small_Cargobase Port.png

thumbnail_Cargobase Port.png

xsmall_Cargobase Port.png

Cargobase Port.png

Discover how a robust TMS, fueled by real-time data, can optimize planning, predict disruptions, and streamline operations for maximum efficiency.

From Status To Action: How Real-Time Visibility Optimizes TMS Performance

As Cargobase's Head of Sales for USA & Canada, Henry Julicher thrives on tackling business challenges. With 14 years of experience in the aviation industry, he takes an analytical approach to meet his customers' needs and foster strong working relationships.

Unsurprisingly, Henry has set new milestones since joining Cargobase. His enthusiasm for solving problems inspires his teammates.

Let's delve deeper and get to know the man behind the success!

## **Hello Henry! Care to kickoff your spotlight by giving us a brief introduction and a fun fact about yourself?**

Yes, sure. Henry Julicher here and I’m the Head of Sales for USA and Canada. 
Now, for the fun fact, I was actually born 2 months premature by accident in the USSR and I hold dual citizenship! 

I’ve been with Cargobase for about 8 months now and It’s been incredible thus far. We’re proud to have launched our US operations and established our presence in the region by setting up our office in Detroit. 

The Detroit office is located really close to some of the best supply chain universities. I can foresee recruiting some of the smartest young logisticians out there and I’m personally feeling very excited about nurturing our team here. Fingers crossed!

## **Tell us what do you love most about working in Cargobase?**

I admire the fact that Cargobase is an innovative company with a strong ambition to achieve its goals. The transportation management platform is intuitive and really user-friendly. It’s like using an app on your phone, it’s clear from day 1.

I also appreciate the entrepreneurial culture of the company. This translates to employees having lots of autonomy and trust from the organization. Every team member can develop their own strategy and reap their own rewards through sheer hard work and effort. 

It’s a very supportive working culture and that really lifts the team spirit up. 

As a sales team, we encounter many customers from different companies every day. This allows us to have the opportunity to help solve various complex logistical challenges and this is definitely an elevating experience that I'm grateful for as well.

## **What’s your passion/mantra in life?**

Sustainability for sure. I’m always looking to explore different ways on how I can be resourceful enough to leave as little impact on our planet as much as possible. 
At this point in time, any sort of sustainable process that can help us save and reduce carbon footprint is definitely worth promoting. Even the classic mantra that I've always loved: Reduce, Reuse, Recycle. It’s great to see that technology has been able to help motivate the global community in putting those words into action as there are now many apps that have helped me and many others to be mindful of how we use our natural resources. 

Speaking of how technology promotes sustainable actions, Cargobase’s TMS platform is also capable of helping companies be more aware of their freight processes and workflows. Its data analytics function can help monitor CO2 emissions per shipment and produce insights that can lead to more informed decisions on a shipment-by-shipment basis. 

So, be it on a corporate or individual level, any small change towards making the planet a better place is progress. Collectively, we can all make a big, positive difference in this mission and I’m hopeful that the rapid development of technology will help elevate the collective efforts too.

## **Share with us the best advice you could give for Getting Ship Done.**

That’s a great question! I think “best” could be subjective for everyone. But, I’m going to just share my two cents worth of advice that I think could be valuable for everyone else. 
To me, staying organized and prioritizing tasks is key. I always make sure every task for the day is clear and manageable. I really love the Apple notes app on my device as I can easily create to-do lists and share them with all relevant team members. 

As there can be so much going on when I'm working, I will also set reminders and dedicate blocks of time for me to work on tasks that are more challenging or less interesting. This is especially helpful for me when I realize that chipping away at a task over time will be much easier than just waiting till the last minute to complete it. 

I’m also aware that as we get older, it becomes harder for us to remember things. So, technology helps in this regard too. Not sure if this applies to others but Siri has been a great help for me when it comes to reminders. 

Every task requires decisions to be made and some could be more crucial than others. I think in this day and age, it’s a great time to also take advantage of what data can do for us when it comes to decision making. Take financial budgeting SaaS apps for example. I’ve been using Monarch Money and it has helped me manage my budgeting better than how I could do it independently. Those visual datasets and actionable insights have been really helpful in informing me about what I spent my money on and where I can save more. 

It’s impressive to witness how far technology has come to help individuals boost their own productivity. I believe it’ll only improve further and it’s always good to explore on the different technology solutions to see how it works out for you to #GetShipDone.

Looking to boost your freight perfomance and efficiency? Be sure to contact us to schedule for a [FREE consultation](https://www.cargobase.com/contact-us) and find out how Cargobase TMS can unleash the full potential of your supply chain!








large_Cargobase Spotlight - Henry Julicher.png

medium_Cargobase Spotlight - Henry Julicher.png

small_Cargobase Spotlight - Henry Julicher.png

thumbnail_Cargobase Spotlight - Henry Julicher.png

xsmall_Cargobase Spotlight - Henry Julicher.png

Cargobase Spotlight - Henry Julicher.png

Henry Julicher, Cargobase's Head of Sales for USA & Canada, brings a unique background and a drive for success. Today, we seek to find out more from the man himself. 

Cargobase Spotlight: Henry Julicher, Head of Sales, USA & Canada

Rapid technological advancements and an increasingly volatile geopolitical climate are creating a constant state of flux for many businesses backed by traditional supply chains.

Businesses are realizing the limitations of their dated supply chains and are searching for a new approach – one that prioritizes adaptability and resilience. This is where agile supply chains come in. But, what exactly is an agile supply chain, and how can businesses establish one in order to thrive in the modern business environment? 

![Agile puzzle piece](https://assets.cargobase.com/Agile_4c18cd4560.png)

## What is an Agile Supply Chain

An agile supply chain is a supply chain framework designed to foster adaptability and responsiveness. 

Unlike traditional supply chains that are more rigid, businesses that have adopted agile supply chain models tend to perform better in the face of constant change. It prioritizes real-time information, open communication, and strong partnerships throughout the entire end-to-end process.

![Shippers at port](https://assets.cargobase.com/Shippers_at_port_8310a045fb.png)

## The Rising Importance of Agile Supply Chains for Businesses

The world is changing at breakneck speed, and so are customer expectations. Technological advancements have fueled a desire for faster freight delivery. Traditional supply chains, often rigid and slow-moving, are struggling to keep up with this ever-growing demand for fast turnaround times.

The rise of deglobalization and protectionist trade policies exacerbates the struggle. Countries are increasingly prioritizing domestic needs, which can disrupt established supply chains that rely heavily on international resources within very short notice. 

Extreme weather events are also becoming more frequent and severe than before, causing significant disruptions for businesses with inflexible supply chains. 

All of these obstacles can be crippling for businesses. But, by embracing agility, businesses can overcome them and thrive in a more uncertain business environment. 

![Shippers at work](https://assets.cargobase.com/Shippers_at_work_fef57e2857.png)

## What Makes a Supply Chain Agile

An agile supply chain is based on several components:

### Data Visibility
As the saying goes, "you can't manage what you can't measure." This holds especially true for agile supply chains as data is the invaluable prerequisite required to establish visibility. End-to-end data visibility provides a clear picture of a business’s entire operation, from procurement and inventory levels to shipping statuses and real-time customer demand.

### Adaptability
The hallmark of an agile supply chain is its ability to seamlessly pivot in the face of change. This doesn't mean anticipating every twist and turn but more about building a system that can adjust swiftly when market demands shift or disruptions arise.

### Fast Response
In the fast-paced world of business, the ability to react quickly to changes is paramount. An agile supply chain excels at this by fostering a culture of rapid response, where information flows freely, decisions are made swiftly, and teams are empowered to take action.

### Efficient Inventory Management
In an agile supply chain, inventory transforms from a static stockpile into a strategic asset that fuels the ability to respond to dynamic market conditions. This is only possible with end-to-end data visibility as it reveals a clearer picture of inventory levels, predicts potential shortages, and ensures businesses are not holding onto excess inventory that eats into their profits.

### Collaborative Environment
Agility isn't a solo act – it thrives on collaboration. An agile supply chain is an interconnected ecosystem where all stakeholders, from suppliers and partners to employees and even customers, work together seamlessly. Effective communication and collaboration are the cornerstones of this ecosystem, fostering a shared understanding of goals and enabling everyone to adapt to market changes or disruptions as a unified force.

### Effective Risk Management
There are no risk-free supply chains. Not even agile ones. However, agile supply chains tend to be fortified with effective risk management strategies that help to quickly identify potential bottlenecks, vulnerabilities in your supplier network, and anticipate market fluctuations. In this way, businesses can develop contingency plans quickly to navigate over these hurdles smoothly.

![shippers in warehouse](https://assets.cargobase.com/Shippers_in_warehouse_04d7378980.png)

## 5 Steps to Establishing an Agile Supply Chain
While the benefits of agile supply chains are undeniable, implementing significant changes within your organization will undoubtedly require a well-defined roadmap. 

Here are 5 key steps that can help to transform your supply chain into a powerful engine of responsiveness and efficiency. By following these steps and fostering a culture of continuous improvement, you'll be well on your way to achieving true agility and unlocking the competitive advantages it offers.

### 1. Always Start with a Supply Chain Audit

Don't settle for a rough assessment. An agile supply chain demands a thorough and insightful audit, going beyond identifying basic bottlenecks. If possible, partner with a consultant experienced in supply chain optimization. Their expertise should help you:

- Uncover Hidden Inefficiencies: Consultants can utilize industry benchmarks and best practices to identify areas where your processes are underperforming, even if they seem efficient on the surface.

- Assess Vulnerability Across the Network: The audit should extend beyond your internal operations. Look for potential risks within your supplier network, transportation routes, and even regulatory environments.

- Develop a Future-State Roadmap: A valuable audit goes beyond problem identification. It should provide a clear roadmap for improvement, outlining the steps required to transform your current state into a future-proof, agile supply chain.

By investing in a comprehensive audit, you gain a clear picture of your strengths and weaknesses, allowing you to prioritize improvement efforts and maximize the return on your investment in agility.

### 2. Keep Your Stakeholders Engaged

Agility can only thrive on collective intelligence and shared ownership to ensure every piece of communicated information, data or insight is well-aligned and understood. No business should ever embark on this transformation journey alone so be sure to engage with all key stakeholders, including:
- Suppliers: Develop a collaborative partnership with your suppliers. Share your goals and challenges, and work together to identify opportunities for joint optimization.

- Logistics Partners/Carriers: Open communication with your transportation and warehousing providers allows for the development of more flexible and responsive logistics solutions.

- Internal Teams: From procurement to sales, ensure all internal teams understand the goals of agility and their role in achieving them. Gather input and leverage their expertise to develop well-rounded solutions.

### 3. Leverage Technology

Technology is the backbone of an agile supply chain. Invest in the right tools to gain real-time visibility across your entire network and unlock valuable insights that fuel agile decision-making. Consider these key solutions:

- Transportation Management Systems (TMS): Gain real-time visibility into your transportation network, optimize routes, and manage carrier relationships for improved efficiency and reduced costs.

- Warehouse Management Systems (WMS): Optimize warehouse operations, streamline inventory management, and ensure accurate fulfillment for on-time deliveries.

- Advanced Analytics Software: Move beyond basic reporting. Leverage data analytics to identify trends, predict demand fluctuations, and make data-driven decisions that optimize your entire supply chain.

Do note that supply chain technological solutions are very powerful tools, but it's only as effective as the strategy behind it. Be sure to carefully evaluate your needs through a supply chain audit first and select solutions that align with your overall agility goals.

### 4. Keep Testing

We can’t stress this enough but agile supply chains are never a one-time fix. With the current supply chain landscape being so volatile, It's only going to be a continuous journey of adaptation. So, before embarking on a full-scale transformation, you will need to mitigate risk and keep refining your approach by implementing pilot programs. These programs allows you to:

- Test New Processes and Technologies in a Controlled Environment: Pilot programs allow you to assess the effectiveness of new approaches in a smaller, less risky setting. This allows for data-driven adjustments before a wider rollout.

- Identify Potential Challenges and Course Correct Early: Pilot programs can uncover unforeseen obstacles you may not have anticipated during the planning phase. Addressing these challenges early ensures a smoother and more successful full-scale implementation.

- Gather Valuable Data and Feedback: Pilot programs provide real-world data and stakeholder feedback that can be used to refine your overall approach and ensure the success of the wider initiative.

Through these pilot programs, you are also able to foster a culture of experimentation and continuous improvement, which is crucial for teams to develop the best solutions to navigate the path with agility and more confidence.

### 5. Optimize Over Time

Building an agile supply chain requires a commitment to continuous monitoring, evaluation, and improvement. Here's how to ensure your agile journey is a success:

- Regularly Review Performance Metrics: Track key performance indicators (KPIs) that measure the effectiveness of your agile supply chain. These may include lead times, inventory levels, customer satisfaction metrics, and overall supply chain responsiveness.

- Solicit Stakeholder Feedback: Continuously gather input from all stakeholders involved in the supply chain. Their insights can help you identify areas for further improvement and ensure your agile strategy remains aligned with evolving needs.

- Adapt and Optimize: Based on the insights gained from performance metrics and stakeholder feedback, be prepared to adapt your agile strategy and processes as needed. Agility thrives on continuous improvement, so embrace flexibility and a willingness to refine your approach over time.

![Supply chain visibility](https://assets.cargobase.com/Supply_chain_visibility_9cf2c47fdc.png)

## How Cargobase fits into your agile supply chain

We foresee that the global supply chain landscape will continue to be volatile moving forward, with agility being more of a requirement rather than an option. 

Fortunately, a wide array of technology solutions such as Cargobase TMS are available to help kickstart and establish a more agile supply chain. 

Cargobase TMS is an integration-friendly transportation management system that offers a suite of tools that are critical for the foundations of an agile supply chain. From offering real-time visibility for accurate shipment tracking to data analytics that empower better informed decisions, businesses will be able to [manage their freight](https://www.cargobase.com/shipment-execution) seamlessly with every freight forwarder they work with. 

To learn more about how Cargobase TMS can be a part of your supply chain agile transformation plan, be sure to [contact us](https://www.cargobase.com/contact-us) for a FREE consultation to find out. 





large_Speeding freight truck.png

medium_Speeding freight truck.png

small_Speeding freight truck.png

thumbnail_Speeding freight truck.png

xsmall_Speeding freight truck.png

Speeding freight truck.png

Agile supply chains are critical for businesses today. It's time you get to know how to establish one yourself with 5 key steps.  

5 Crucial Steps for Building an Agile Supply Chain

The globalized world brings immense opportunity, but also heightened risk. Disruptions caused by pandemics, geopolitical tensions, and even climate change have exposed the vulnerabilities of opaque supply chains, raising the importance of establishing end-to-end visibility across supply chains. 

According to a survey by Tive, nearly 80% of supply chain professionals globally recognize the importance of real-time visibility in 2024. However, only less than half of the respondents have adopted this technology.

This disconnect between recognition and implementation reveals the complexity involved to bridge the gap from acknowledging the need for visibility to actually achieving it. At the same time, it presents a valuable opportunity for innovation and collaboration as businesses look towards digital transformation and form strategic partnerships to stay ahead of their competitors.  

![Sea port](https://assets.cargobase.com/seaport_534e913006.png)

## Why Supply Chain Visibility is Important

In today's dynamic world, supply chains face constant hurdles. Unforeseen delays, fluctuating costs, and ever-changing customer demands can throw even the most well-oiled operations off track. However, by establishing supply chain visibility across the board, these hurdles can be reduced as shippers get to experience significant benefits.

### Enhanced Decision Making

Shippers get to see the entire supply chain to better optimize freight operations, allocate resources, and choose the best routes in real-time.

### Increased Efficiency and Cost Savings

Real-time tracking and ETAs allow shippers to plan better, avoid delays, and cut storage and [demurrage fees](https://www.cargobase.com/blog/demurrage-vs-detention:-what-are-they-and-how-to-avoid-them).

### Improved Customer Satisfaction

Customers can plan their logistics better as they can track shipments accurately, share accurate ETAs, and empower their customers to plan their logistics more efficiently. 

![man using supply chain software](https://assets.cargobase.com/man_using_supply_chain_software_e6cf0f74f1.png)

## What to Look Out For When Selecting Supply Chain Visibility Software

The good news is that there are plenty of digital solutions to help companies get more visibility into their supply chain. The challenge lies in finding the right fit for you business.

Every company’s requirements is different and so are the capabilities of each supply chain visibility software in the market. By engaging all stakeholders in a discussion to be transparent about existing visibility gaps and assessing the desired level of detail required for different parts of the supply chain, the actual requirements of the company can be uncovered. 

Here are some great questions worthy to evaluate if a software meets your needs.

### 1. Can the supply chain visibility software be configured to your company’s needs?

Configurability is one of the first factors to consider when it comes to selecting any supply chain visibility software. While extensive customization is technically possible with any system, it can come with long term costs.

The ideal solution should offer robust data sharing capabilities that enable customized outputs aligning to the company’s requirements, without a steep maintenance burden. 

### 2. Is the supply chain visibility software compatible with the systems in your tech stack?

While a multitude of visibility solutions exist, their coding and structure can vary greatly. Incompatibility with any current systems, especially regarding real-time data sharing can result in a waste of resources and inefficiency.

Prior to choosing the right platform, it is imperative for all stakeholders to understand their visibility processes and limitations. This knowledge will provide better clarity in selecting software that integrates seamlessly, ensuring a smooth transition and effective tech stack implementation for long-term success.

### 3. Does the software streamline customs and transport management?

Customization is arguably the most important factor. The ability to configure data views and workflows around customers, transportation, logistics, tracking, and market insights empowers teams to streamline routine tasks. 

As a result, teams can be more effective and better focus on work that matters more. Look for visibility solutions with robust add-ons that offer reliable and customized data that can truly optimize your operations.

### 4. Does the software make it easier to understand drayage needs?

Top-tier supply chain visibility software will be able to empower shippers with real-time insights for better drayage planning. This translates to efficient pickup scheduling at ports, avoiding costly bottlenecks and delays. 

After all, seamless data sharing is crucial for smooth logistics. In a fast-paced supply chain environment, collaboration is key. Real-time data readily available to all stakeholders avoids disruptions and ensures a smooth flow of operations.

### 5. Is the software up-to-date with the industry’s Information Security protocols?

It is important to look for solutions with robust data security measures to ensure sensitive information remains protected. Keep a lookout for software that employs industry-standard security protocols like encryption and access controls. Multi-factor authentication and user activity monitoring are also excellent security measures that can further enhance security by preventing unauthorized access and ensuring data integrity.

### 6. Does the vendor’s customer support align with your business needs?

Customer support should also not be overlooked. The software provider has comprehensive onboarding, 24/7 assistance and a presence in your business locations should always be the preferred choice, to ensure all team members can effectively utilize the visibility tool.

![presentation in office](https://assets.cargobase.com/presentation_in_office_93eb398b9d.png)

## Enhance Supply Chain Visibility with Cargobase TMS

Though establishing supply chain visibility could require a lot of time and self-assessment, it is starting to become more of a necessity than a competitive advantage as supply chain management becomes more fast-paced and unpredictable. 

That being said, Cargobase TMS has helped many shippers achieve it with great success through a holistic suite of supply chain solutions, including its [real-time visibility](https://www.cargobase.com/real-time-visibility) function, [data analytics](https://www.cargobase.com/analytics) and seamless collaboration platform.It can also be easily integrated to many CRMs and ERPs, and can be implemented with in weeks, not years. 

Looking to find out about how Cargobase TMS can boost your supply chain visibility and freight management capabilities? Be sure to [contact us](https://www.cargobase.com/contact-us) for a FREE consultation to learn more!



large_Supply Chain Visibility.png

medium_Supply Chain Visibility.png

small_Supply Chain Visibility.png

thumbnail_Supply Chain Visibility.png

xsmall_Supply Chain Visibility.png

Supply Chain Visibility.png

As the supply chain landscape gets more unpredictable, establishing end-to-end visibility becomes ever more important. But, what should supply chain leaders look out for when implementing them?

Improving Supply Chain Visibility: How To Get Started

## Background

Our customer is a global manufacturer with 200,000 employees worldwide. The company is exposed to supply chain challenges that can lead to disruptions in the production process and eventually lead to delivery delays. When such events occur, the company quickly looks at their logistics team to reduce impact by turning to specific logistics services.

These services are often referred to as Premium Freight, as they go beyond the standard service levels. Examples of such services are LTL, sprinters, express air freight, charter flights, and includes "upgrading" from Ocean to air freight to reduce transit times.

![auto case study quote.jpeg](https://assets.cargobase.com/auto_case_study_quote_e5ccbce3af.jpeg)

## The Challenge

#### Lack of Visibility & Control Due To Inefficient Manual Processes

- They were heavily reliant on emails and phone calls to communicate with their logistics partners, which were time-consuming and error-prone.

- An approval process with a third-party solution, which did not fully meet their tiered approval levels, and the original vendor had long stopped development support.
 
- Freight invoice auditing and approval was performed manually by logistics operations staff. 
 
- Compliance was an issue, as regional office had little or no control over the providers that their local operations staff selected


## The Solution
#### The Cargobase solution was implemented in manufacturing plants in North America, Asia Pacific and Europe

![Auto case study stats.jpeg](https://assets.cargobase.com/Auto_case_study_stats_fd8c602138.jpeg)

**Keys Features Deployed:**
- Order Booking Approval Flow
- Spot Buy Quoting
- Track & Trace
- Invoice Audit
- Analytics  

**Fully automated request for quotation workflow**, with reuse of previously used information, procurement rules and single-screen solution comparison. Full data insights on providers quoting performance. 

**Centrally controlled pool of logistics service providers**, where each provider has a capability profile. Logistics service providers can be shared among locations and regions to gain further benefits. 

**Enriched quoting and shipping data with internal references**, validation cost centers and enhanced reason code insights, across the organization.
A fully automated multi-level pre-booking approval flow, where users can’t book a shipment without the approval from one or multiple approvals.

## Key Results
![auto case study key results.jpeg](https://assets.cargobase.com/auto_case_study_key_results_4ea0f8a861.jpeg)

- **Greater Operational Visibility**: Through automation, execution leadership had more control and insight into the premium freight process. Access to operational data and analytics enabled process optimisation.  

- **Compliance under control**: the shipper now meets compliance and company rules by receiving more quotes (average of 4.67 quotes) from only approved providers, with only 17 mins to receive the first quote. Logistics teams can compare and get management approval, in a fraction of the time.

- **Cost reduction**: Within 6 months of implementation, the shipper observed 25% cost reduction on their premium freight.




large_Automaker Case Study image.png

medium_Automaker Case Study image.png

small_Automaker Case Study image.png

thumbnail_Automaker Case Study image.png

xsmall_Automaker Case Study image.png

Automaker Case Study image.png

See how Cargobase gave the Executive Leadership of a Global Automotive Manufacturer control and insight into their logistics processes.

Global Automaker Achieves 25% Cost Avoidance In Premium Freight

Since the start of her career in logistics, Cecilia Parra has always been captivated by the industry's constant evolution. After joining Cargobase, she was empowered to develop herself further and discover deeper fulfillment by forging positive relationships with shippers through multiple successful Cargobase TMS implementations.

Not only is Cecilia an experienced veteran in the industry with over 10 years worth of experience, she is also an individual with a very dynamic personality, a sweetheart to be around with and an absolute team player who’s always willing to contribute. Joining us today to shed some light is Cecilia herself!

## Hola Cecilia! Will you give us a brief introduction with a fun fact about yourself?

**Cecilia**: Sure. I’m Cecilia Parra, the Regional Sales Manager of Cargobase overseeing the Mexico market. I first joined Cargobase about 2 years ago as a Customer Success Manager for the North American region and when we expanded to Mexico, I had the honour to open the office and transitioned myself to become what I am today! The entire journey to help clients #GetShipDone has been a rewarding one and I'm so grateful to have experienced it. 

Aside from fulfilling the duties of my 9 to 5 role as a Regional Sales Manager, I’m also studying to become a floral designer! 

## Tell us what do you love most about Cargobase?

**Cecilia**: I love the fact that Cargobase is a company where everyone can truly be themselves, have fun while working, and at the same time, feel a sense of accomplishment whenever we help our customers make their lives easier with Cargobase TMS! 

It’s also a company that has a diverse workforce as we have teams situated across different parts of the world. Such an environment provides us with the invaluable opportunity to learn about different cultures and discover the means to support each other when we don’t get to see each other physically all the time. 

## What’s your passion/mantra in life?

**Cecilia**: There’s this quote by the famous Greek philosopher, Epictetus that resonates deeply with me: “It’s not what happens to you, it’s how you react to it.”. Personally, I'm a mum with a disabled child. Life was challenging for him at the start, but he has learned to develop immense resilience over time. 

Seeing him relentlessly overcoming his obstacles in life has always been a great motivation for me to pursue my goals no matter the situation, and it’s essential to have motivation especially when I’m in sales.

## Share with us the very best advice you could give for Getting Ship Done.

**Cecilia**: I think every shipper needs to embrace the information age now and actionable data will be the key to achieve success moving forward. There’s this saying “What is not measured cannot be improved” which rings very true to all of us in this day and age, and many companies are starting to realize the importance of insights throughout their supply chain. 

So, why not start to #GetShipDone with Cargobase and gain actionable insights to find out what needs to be improved right?

Looking to boost your freight perfomance and efficiency? Be sure to contact us to schedule for a [FREE consultation](https://www.cargobase.com/contact-us) and find out how Cargobase TMS can unleash the full potential of your supply chain!!





large_Cargobase Spotlight - Cecilia Parra.png

medium_Cargobase Spotlight - Cecilia Parra.png

small_Cargobase Spotlight - Cecilia Parra.png

thumbnail_Cargobase Spotlight - Cecilia Parra.png

xsmall_Cargobase Spotlight - Cecilia Parra.png

Cargobase Spotlight - Cecilia Parra.png

Our Regional Sales Manager of Mexico, Cecilia Parra, has always been known as the "sweetheart" in Cargobase according to her colleagues and even her clients. Find out more about her values at work and what drives her passion in logistics!

Cargobase Spotlight: Cecilia Parra, Regional Sales Manager (Mexico)

By prioritizing sustainability, traditional shipping practices can be revolutionized to pave the way for a cleaner planet. This is where green shipping emerges as a game-changer.

In this article, we'll delve into the world of green shipping and explore why it's poised to become a dominant force in the future of freight.

## What is Green Shipping

Green shipping refers to a set of practices that aim to minimize the environmental impact of freight transportation. These revolve around key aspects such as reducing carbon emissions, optimizing fuel efficiency, adopting cleaner technologies, and establishing sustainable practices. 

As today’s supply chain operations are increasingly complicated, a collaborative approach in working with sustainable stakeholders is key in achieving success in global green shipping. 

## The Problem with Shipping Today

While the global shipping industry serves as the lifeblood of international trade, It is also facing a critical crossroad. While it efficiently moves goods across vast distances, today’s shipping practices come at a significant environmental cost. 

Let’s take a closer look at the key challenges of shipping today:

### Pollution and Climate Change

Today’s global shipping operations rely heavily on fossil fuels and it is estimated to account for up to 10% of global [CO2 emissions](https://www.cargobase.com/blog/what-you-need-to-know-about-scope-3-emissions-for-csrd) by 2050. These emissions severely impact climate change, disrupt weather patterns and contribute to rising sea levels. Additionally, air and water pollution from ship engines and bilge water threaten marine ecosystems and coastal communities. Ignoring these environmental concerns is simply not an option anymore. 

### Fuel Inefficiency

Many traditional shipping practices are inherently fuel-inefficient. Factors such as slow turnaround times in ports, inefficient route planning, and older vessel designs contribute to unnecessary fuel consumption and higher emissions.

### Limited Transparency

Many supply chain companies today still lack data on fuel usage and emissions. Without actionable data, It is difficult for companies to justify the need to optimize their shipping operations using more sustainable methods and track their own carbon footprint.

<ProTip/>

## Why the Future of Freight Is Green and Companies Need to Embrace It

The winds of change are blowing strong in the freight industry, especially when it comes to sustainability. Here are some of the driving forces behind this shift and why companies should also start embracing a sustainable approach to freight transportation:

### Sustainability Will Remain As A Global Imperative

Climate change and environmental degradation are pressing global issues. As a result, these issues have inspired consumers, governments, and regulatory bodies to demand for a more sustainable future. In the world of freight, acting on green shipping practices will demonstrate your commitment to global environmental responsibility which ensures your place in a future shaped by your sustainable practices. 

### Long Term Economic Advantages

Green shipping practices can deliver significant cost savings through optimized routes, fuel efficiency, and potential access to green financing. These economic benefits are only likely to increase as fuel prices fluctuate and the demand for sustainable solutions grows. Companies that invest in green shipping now will be well-positioned to capitalize on these long-term economic advantages.

### Technological Advancements

Innovation is a driving force behind green shipping. As technology continues to evolve, we can expect even more efficient and sustainable solutions to emerge. Early adopters of green shipping practices will be best placed to leverage these advancements and stay ahead of the curve in a rapidly changing industry.

### Change in Regulations

As awareness of the environmental cost grows, various global regulatory bodies such as the International Maritime Organization (IMO) are taking decisive action to address the problems by implementing stricter emission reduction targets, and more regulations are on the horizon. Failure to comply with these regulations can result in increased costs, hefty fines and disruptions to supply chain management. By adopting green shipping practices now, companies can stay ahead of the curve and avoid costly compliance issues.

### Consumers’ Demands

Today's consumers are increasingly conscious of the environmental impact of the products they purchase. A growing number are willing to pay more for sustainable options and actively seek out companies that are committed to responsible practices throughout their supply chains. Embracing green shipping will allow companies to demonstrate their commitment to sustainability, enhance brand reputation and attract environmentally conscious customers.

## Charting the Course for a Greener Future of Freight

The transition towards a more sustainable shipping operation will present significant rewards in the long run. Through a successful transition, companies will be able to establish a positive environmental impact and gain a competitive edge.  But, it might be challenging without adopting the right tools to keep up. 

This is when Cargobase TMS comes in as a holistic solution. Apart from helping shippers [manage freight](https://www.cargobase.com/freight-management) efficiently, its [carbon visibility](https://www.cargobase.com/reporting-analytics) feature empowers companies to automatically track and calculate their carbon emissions across various freight modes, giving them a clear picture of their carbon footprint.


Ready to set sail for a greener future of freight? Schedule a FREE consultation with us to learn more about how Cargobase TMS can help kickstart your business’s journey towards a more sustainable future of freight. 



large_Freight ship in ocean.png

medium_Freight ship in ocean.png

small_Freight ship in ocean.png

thumbnail_Freight ship in ocean.png

xsmall_Freight ship in ocean.png

Freight ship in ocean.png

The global shipping industry is a powerhouse of international trade. But, its environmental impact can't be ignored as it's a very carbon-intensive industry. This is where Green Shipping comes in. 

What is Green Shipping and Why It's The Future of Freight

[Singapore, June 7th, 2024] — Cargobase, a premier global Transportation Management System (TMS) platform, and Portcast, a leader in supply chain visibility, are partnering to deliver actionable data and operational efficiency to shippers.

In a concerted effort to elevate the overall customer experience throughout the shipment lifecycle, from planning to booking to real-time tracking, the partnership is poised to harness the respective strengths of the companies. Cargobase TMS is used by enterprise shippers worldwide to streamline freight management, unify shipment tracking and improve operational visibility across various freight modes. Portcast will deliver enhanced visibility through real-time shipment tracking, terminal insights, predictive analytics on shipment arrivals, and delay and exception reasons.

This integration of Portcast's advanced visibility features within Cargobase' TMS solution enables seamless orchestration of workflows for shippers. It provides end-users with access to actionable visibility data with exception management and delay reasons. 

“In today’s dynamic logistics landscape, shippers crave real-time visibility into their supply chain. They need data-driven insights to manage disruptions and optimize their supply chains proactively. Our partnership with Portcast directly addresses this need by integrating their industry-leading container tracking and predictive ETA technology with the Cargobase TMS platform. This empowers Cargobase users with actionable visibility data within a single, intuitive dashboard, enabling them to make informed decisions, mitigate risks and ensure timely deliveries.” – Wiebe Helder, CEO, Cargobase. 

Talking about the partnership, Portcast CEO Nidhi Gupta stated, “Shippers are looking for integrated solutions for automating booking workflows and understanding what disruptions impact them and what they could do to mitigate the impact on costs and customer experience. With Cargobase and Portcast, we address their needs comprehensively.”

## About Cargobase

Founded in Singapore in 2013 by Wiebe Helder (CEO), Cargobase is a global logistics software company whose mission is to simplify logistics for all. Its solution: "Logistics Software That Works". 

Cargobase TMS is designed for shippers to manage their local, regional or global supply chains across all freight modes, giving logistics professionals the visibility and control to make better decisions from day one. 

Cargobase TMS is used in 50 countries by leading enterprise shippers across Automotive, Semiconductor, Oil & Gas and Industrial Machinery sectors. Cargobase is currently ranked #6 out of 184 TMS Solutions worldwide by G2, and has offices in Singapore, Malaysia, Netherlands, Mexico, and the United States. 

For more information, please contact: [marketing@cargobase.com](marketing@cargobase.com)

## About Portcast

Portcast, as a supply chain visibility provider, adopts a data-first approach. With advanced analytics and cutting-edge technology at the core, Portcast's solutions, including Real-Time Container Tracking and Exceptions Management, transcend conventional tracking methods. 

Drawing from an expansive network of over 170+ ocean carriers and NVOCCs, 5000+ vessels, 1200+ ports and terminals, 350+ air freight carriers, and 70+ global data sources, the company processes an impressive 5 million data points daily. This wealth of information allows for delivering precise location insights, and predictive ETAs and ETDs for every (air)port along the voyage, empowering stakeholders to revolutionize downstream planning and exceptions management within their global supply chains. 

For more information, please reach out to: [contact@portcast.io](contact@portcast.io)


large_Cargobase x Portcast

medium_Cargobase x Portcast

small_Cargobase x Portcast

thumbnail_Cargobase x Portcast

xsmall_Cargobase x Portcast

Cargobase x Portcast

We have partnered with Portcast, a leader in supply chain visibility. Check out how this strategic partnership will make a positive impact to all shippers.

Cargobase and Portcast Forge Strategic Partnership to Enhance Supply Chain Visibility for Clients Worldwide

In today's competitive shipping landscape, efficiency and cost control are paramount for businesses of all sizes. But, with multiple modes of transport, fluctuating rates, and constant demands for faster delivery times, managing freight logistics can be a complex task. This is where a robust Transportation Management System (TMS) can be a viable solution. 

## What is a Transportation Management System (TMS)?

According to Freightwaves, Transportation Management Systems (TMS) are logistics software solutions used by shippers to streamline and optimize all aspects of their freight logistics operations. The software acts as a central command center for their shipping needs, providing real-time data, automating tasks, and offering powerful tools to manage every step of the journey, from order placements to final delivery.

Choosing the right TMS software can be an overwhelming task though, especially when there’s a growing number of TMS solutions available now. But, investing time to evaluate the requirements of a TMS specific to your business needs can prove worthwhile as it helps to streamline operations, optimize costs, and boost your bottom line in the long run.

![Automotive manufacturing supply chain](https://assets.cargobase.com/Automotive_manufacturing_supply_chain_0d6205f09b.jpg)
## Understanding your business needs 

Every business differs in size, requirements, and industry. This is why it’s most important to start from assessing them before even looking at what a TMS provides and a successful TMS implementation largely depends on it. Here are some factors that are worthy to be assessed: 

### Identify the challenges to address

The thought of investing in a Transportation Management System literally arises from the need to solve challenges and listing them down is a great start to understand your requirements better. 

Are you struggling to secure the best rates? Do you lack visibility for your shipments? Are your processes way too inefficient? Or are you facing communication gaps between your team and carriers? Check in with your team members for a deeper dive to find out which part of the freight management process is the root of the problem. 

### TMS goals

Once you have determined what your freight management challenges are, it should become clearer for you to define what you expect out of a TMS.

If one of your key challenges is inefficient processes, the TMS should be able to streamline workflows or establish asynchronous communication between teams to expedite shipments. If visibility is a problem, you should expect the TMS to empower your team with [real-time shipment tracking](https://www.cargobase.com/real-time-visibility) or establish better collaboration within your supply chain network.

### Business size and industry

While there's a vast array of TMS solutions in the market, each of them have their own strengths and could be better suited for certain business types, depending on the company’s size and industry. 

For example, a large MNC managing complex global supply chains might require a robust TMS with features like advanced analytics, multi-modal support (think air, ocean, ground), and robust security protocols. On the other hand, a smaller, domestic-focused business might prioritize user-friendliness and potentially a solution at a more affordable price point.

From an industry level, an e-commerce company which thrives on speed and efficiency, might prioritize features like real-time inventory management, fast order fulfillment options, and potentially even integration with their online store platform. Conversely, a company in the oil & gas industry might require features that can support hazardous materials and compliance with specific regulations.

![Representation of freight management processes](https://assets.cargobase.com/Representation_of_freight_management_processes_649c0eb71c.jpg)

## Evaluating Transportation Management System (TMS) features 

After evaluating your business needs, it’ll be good to understand some of the key features a transportation management system will provide.  

### Transportation order management

This is where most freight orders begin. The transportation order management feature streamlines workflows between internal teams and logistics personnel. Structured order input and documentation management reduces errors, and improves overall efficiency, which is especially valuable for companies with complex operations. 

Some transportation management systems are also able to seamlessly integrate with ERPs or warehouse management systems (WMS) to improve workflows. This also helps to reduce errors as freight details don’t have to be keyed in again manually, which leads to a reduction of costly wrong orders and missed deliveries. 

### Transportation planning

A transportation planning feature in a TMS enables shippers to consolidate multiple orders into a single shipment, eliminating the need to deal with multiple quotations to get a shipment out. Through this feature, shippers will be able to save more time and be more efficient in transporting multiple orders in time. 

Shippers are also able to gain more control over their shipping journey through point-to-point or multi-leg shipment creation, which allows shippers to select the best lanes with the fastest delivery times and freight modes to further optimize their transportation times. 

<ProTip/>

### Freight rate management

A [freight rate management feature](https://www.cargobase.com/freight-management) serves as a liaison interface for easy freight rate comparison and efficient negotiation. It streamlines operations and communication with carriers in the shippers’ network and eliminates the need for multiple emails or follow-up calls. 

When requesting a quotation, shippers can inform carriers about their shipping criteria by selecting the standardized attributes in the platform. This helps to facilitate a consistent and compliant quotating process, which gives shippers the transparency to make informed decisions. 

### Shipment execution

A shipment execution feature provides an overview of all ongoing shipments and real-time status updates to inform every stakeholder involved. 

Instead of endless email threads, shippers will be able to receive notifications from the carriers within the platform. If required, they can communicate directly with carriers for any queries regarding a particular shipment. 

All details and milestones of every order should also be available for reference through an audit trail to help facilitate a clearer communication flow. 

### Visibility

Visibility features are developed to provide shippers with enhanced tracking capabilities that can offer them more granular shipment updates, all within the system. 

These can come in many forms, from a map-based interface that raises alerts to real-time GPS shipment tracking. By knowing the shipment statuses in real time shippers will be able to anticipate imminent disruptions better and mitigate them before it happens. Operations team will also be able to plan better and avoid incurring additional costs such as [demurrage charges](https://www.cargobase.com/blog/demurrage-vs-detention:-what-are-they-and-how-to-avoid-them).

### Invoice audit

Freight auditing has been known to be a manual process that’s inefficient and error-prone. This is when [invoice audit](https://www.cargobase.com/invoice-matching) features of a TMS can help to consolidate all invoices and highlight discrepancies automatically.

In some transportation management systems, there are also in-built resolution centers that allow shippers to resolve discrepancies with carriers within the platform, ensuring a clearly documented audit trail in the event of a lawful dispute. 

Some invoice audit features can also be integrated into external management systems, ERPs or business intelligence platforms for compliance purposes. This is especially valuable for companies that incorporate a more dynamic financial system.

### Data and analytics

Transportation management systems today have [reporting and analytics](https://www.cargobase.com/reporting-analytics) that help you glean valuable insights to optimize your freight operations.

There are many different metrics that can be tracked in a TMS, such as freight volume and spend, carrier performance, or cost by freight mode. By determining which of them are valuable metrics for the business and monitoring them consistently, shippers will be able to know where to reduce costs and where they can further optimize for better performance. 

![Supply chain professionals evaluating solutions via a discussion](https://assets.cargobase.com/Supply_chain_professionals_evaluating_solutions_via_a_discussion_538babd55b.jpg)

## Key considerations for selecting the right TMS software

It’s always good to do your due diligence to determine which TMS best cater to your business needs. Here are some key consideration:

Here are some key consideration points to consider:

### User-friendliness

On the surface, user-friendliness might seem like a trivial consideration. But, bear in mind that freight management is dynamic and complicated. Imagine if your team is saddled with a TMS that has a poor user interface. That adds on to the complication, leads to a waste of resources and hinders the success of transforming your freight management processes.

A good TMS should be developed with a “user-first” approach, that enables users to simplify every task in a freight management process. Take some time to consider your team’s technical proficiency and find product demonstration opportunities to experience the interface as a team to determine whether a TMS is easy to navigate. 

Some other user-friendly attributes to look out for include clear menus, readily accessible functions, and minimal training requirements. Ideally, a good TMS interface not only has to be clear, it also has to minimize cognitive load and allows your team to focus on completing tasks with utmost efficiency. 


### Scalability for future growth

Supply chains are dynamic in nature. Businesses may experience rapid growth, expand into new regions, or even enter a merger with another company. This is when a TMS has to be scalable enough to fit the expanding needs of the business and be future-proof.

Especially for a fast-growing business, adopting a TMS that cannot scale or keep up with the demands of a business will become a roadblock to its future success. As a company expands, it can experience an increase in shipment volumes, expect more carriers to partner with, or even require new functionalities. A TMS with weaker scalability will have difficulty supporting these demands and might also incur a heavy cost if the system needs to be replaced with a more scalable TMS. 

Every TMS has its own range of scalability and before deciding to adopt a TMS, it’s very important to determine if it can adapt to the needs of your long-term business growth by determining what are the scalable attributes required. Some of them that’s worthy of consideration include flexible configurations, additional modules, and the ability to handle growing data volumes seamlessly. If you plan to expand beyond your current freight modes, look out for features that support multi-modal transportation.  

### Integration capabilities

Freight management is only one process in an entire supply chain and transportation management systems are the key software that supports the process. For an entire supply chain to work seamlessly across the board, all other processes that are backed up by other dedicated software have to be synchronized with each other. This is when software integration comes into the picture. 

Technically, the more control a business owns in the supply chain, the more important software integration becomes a key consideration to prevent a fragmented data landscape from forming. If left unchecked, it can lead to serious errors, delays, and ultimately, a lack of visibility into entire supply chains. 

A great place to start is by connecting with your tech team on the existing tech stack details because different transportation management systems have varying integration capabilities. Consider the important systems the TMS has to integrate with. These could include your WMS, ERP, or even your accounting software. It’s also ideal to find out how seamless data exchange between your existing systems and the TMS be. A seamless integration can eliminate the need for manual data entry, reduce the risk of errors, and provide a more unified view of your entire operation. 

### Cost and value

Budgets arguably play the most decisive role in deciding whether a particular TMS is to be adopted. But, it’s always crucial to adopt a cost-benefit analysis approach to determine what is the long-term value the TMS brings to the business instead of deciding based on cost.

Consider a scenario where adopting a seemingly low-cost TMS might seem to be a solution that meets the company’s budget. But, it lacks features critical to your operation, forcing you to revert back to manual workarounds or purchase additional software. This can ultimately negate any initial cost savings. Instead, focus on the total cost of ownership, which should provide a more comprehensive picture that includes implementation costs, any potential maintenance fees or training expenses, and the long-term impact on your supply chain efficiency. 

<ProTip/>

### Provider reputation

Adopting a TMS is more than just an investment. It’s also about establishing a long-term partnership with a reliable provider. After all, transportation management systems are a dynamic product, and you’ll need to work closely together to ensure its smooth operation and maximize its potential. 

The most reputable TMS providers tend to have a proven track record within the industry, with well-established customer relationships and demonstrably successful implementations across various business types. Look out for positive testimonials and case studies that showcase how the TMS has helped companies overcome specific challenges and achieve tangible results. Industry awards and recognition can also serve as valuable indicators of a vendor’s expertise and commitment to innovation. 

### Customer support

But a truly exceptional reputation goes beyond accolades. An ideal provider should also offer exceptional customer support with teams of experts readily available to answer your questions, address technical issues, and guide you through any challenges that might arise. 

So, when choosing a TMS provider, don't hesitate to enquire more about their support structure. A comprehensive onboarding process, ongoing training opportunities, and readily available resources are also hallmarks of a vendor that truly prioritizes customer success.

Proactive measures are also invaluable. Some providers do regular check-ins, performance reviews, and provide access to product updates/enhancements to ensure their TMS continues to evolve alongside your business needs.


![Cargobase TMS software](https://assets.cargobase.com/Cargobase_TMS_software_3231a8cf8e.png)

## Why Cargobase TMS might be your perfect fit

We hope you are now well-equipped to select the right TMS software for your business. You can use your newly acquired knowledge to see if Cargobase TMS is a good fit for your business. 

Cargobase TMS is a cloud-based TMS solution designed to streamline freight operations, optimize costs, and provide shippers with greater control over their entire logistics network.

Here’s what sets Cargobse TMS apart:

- **User-centric design**: Our intuitive interface prioritizes ease of use, minimizing training time and ensuring smooth user adoption across your team.

- **Scalable architecture**: As your business grows, Cargobase TMS scales with you to accommodate your evolving needs, whether it's handling increased shipment volumes, expanding into new markets, or integrating with additional systems.

- **Seamless Integrations**: Cargobase TMS seamlessly connects with your existing WMS, ERP, accounting software, or e-commerce platform, eliminating data silos and fostering a unified view of your entire supply chain.

- **Cost-Effective Solutions**: We offer flexible pricing plans to fit your specific budget and operational needs. Cargobase TMS isn't an expense; it's an investment that pays off by improving cost savings, boosting efficiency, and inculcating a competitive edge for your business.

- **Unparalleled Support**: Our dedicated customer support team is committed to your success. We provide comprehensive onboarding, ongoing training, and readily available resources to ensure you maximize the value of Cargobase TMS.

Curious to know more? Be sure to [schedule a FREE consultation](https://www.cargobase.com/contact-us) with us to discover how Cargobase TMS can be your esteemed partner to transform your supply chain into a well-oiled system of efficiency, visibility, and cost-control. 
Cheers!

large_Man ordering freight in a warehouse.png

medium_Man ordering freight in a warehouse.png

small_Man ordering freight in a warehouse.png

thumbnail_Man ordering freight in a warehouse.png

xsmall_Man ordering freight in a warehouse.png

Man ordering freight in a warehouse.png

There are many TMS software in the market and it can be tricky to select the right one for your business. This is why we've structured a detailed guide to help you figure your needs and what should you look out for in a TMS. 

The Ultimate Guide: How to Choose the Right TMS Software 

As a Customer Success Manager of Cargobase, Anne Yip is dedicated to providing the most holistic customer experience to all of our users. With her cheerful disposition and inquisitive mind, it’s no wonder she is an asset to the customer success team as she’s always looking to help with an open heart. Even her presence in the office is widely appreciated as her positivity alone keeps the entire team going. 

Today, we speak to Anne herself to find out more about her. 

## Hello Anne. Shall we start with a casual introduction? You can start by telling us a fun fact about yourself. 

**Anne**: For sure! I’m Anne, the customer success manager based in Cargobase’s HQ at Singapore. This is my third year with Cargobase and while looking back, I realized we’ve expanded so much ever since I started! It has been an exciting journey thus far.
Now, here’s my personal fun fact. When I was a kid, I had a pet lizard for a night. Unfortunately, it escaped, leaving its tail behind, wriggling when I touched it. I was horrified and cried profusely. Ever since then, I developed a phobia for anything that wriggles (worms, snakes, etc)! 

## What do you love most about Cargobase?

**Anne**: I love the team spirit and diversity in the company because we have colleagues based in different parts of the world. Also, kudos to HR for introducing an avenue on Slack, where we share what we did on the weekend, giving everyone a glimpse of life on the other side of the world.

That aside, I also appreciate the Cargobase TMS product itself as I get to experience how it truly simplifies complex freight procurement processes for shippers. Even a user with zero experience using a TMS tool can manage to master it within a matter of hours. That’s how user-friendly our platform is. 

We also continuously improve our platform by introducing new features and upgrading the interface to further simplify entire freight procurement processes.

## Share a personal anecdote or example that highlights your love for Cargobase

There's this great sense of satisfaction whenever I see customers rolling out Cargobase further across their company. It tells me our software is really making a difference in their logistics process –  they're seeing the value and want their whole team on board. That's what motivates me!

## What’s your passion/mantra in life

There’s this quote by Oprah Winfrey, “Great communication begins with connection” that resonates so much with how I develop relationships with people around me. I’ve always believed that we can only have deeper conversations if we have a strong yet authentic connection with them. 

This also relates so much to my role in Cargobase because I’m always communicating with our customers to ensure their success in using the platform. But, to do that, we need to keep that authentic connection going so that the relationship between us continues to evolve. 

Some of the ways we try to cultivate relationships with our customers is by visiting them regularly at their offices or remotely (whenever possible), and do our best to sincerely understand them better on what’s working and what’s not. Once they recognize that we are truly working with them as partners, they will start to feel a level of trust with us and they’ll be more willing to communicate. 

## Best advice for getting “ship” done

I’d say strive to look for new ways to complete tasks more effectively and efficiently. After all, we just want to get our “ship” done right? So, why not work on the same amount of tasks with less effort! 

Technology is also advancing at such a quick pace today. It’s also wise to ride this wave, open up ourselves to new tools or apps to help transform our daily tasks at work or even within the scope of our own personal lives. 

Last but not least, it’s always better to speak to someone whenever there’s a problem because you may come across a valuable point of view that you have never thought of and that might be game changing for all you know!



Looking to boost your freight perfomance and efficiency? Be sure to contact us to schedule for a [FREE consultation](https://www.cargobase.com/contact-us) and find out how Cargobase TMS can unleash the full potential of your supply chain!!





Cargobase Spotlight: Anne Yip, Customer Success Manager (Singapore)

large_Anne Yip.png

medium_Anne Yip.png

small_Anne Yip.png

thumbnail_Anne Yip.png

xsmall_Anne Yip.png

Anne Yip.png

Making sure users are maximizing Cargobase TMS's potential has always been Anne's forte and dedication. Learn more about her approach to customer success and what keeps her motivated at work!  

## In your experience, what are the most common challenges that shippers encounter when implementing Cargobase, and how do you help shippers overcome them?

**Thomas**: The most common challenges revolve around change management, data quality/accuracy, and also understanding their own processes. But, every implementation to help solve those challenges is unique in its own way. Fundamentally, we work with them to understand and map their current processes. Then we can advise them on the changes they need to make to adopt the new system. 

It’s not as simple as configuring software for the shippers. It’s the whole package of consultancy, understanding their business and setting them up for success. We don’t see ourselves as vendors. We see ourselves as valuable strategic partners that are invested in our customers success.

## According to you, how much of a difference does a good customer success team contribute to an overall TMS user experience?

**Thomas**: I’d personally like to call it a customer experience team - includes Solution Implementation, Customer Success and Support. A good customer experience team is the key differentiating factor between a TMS software provider and a strategic partner. A partner is committed to the client’s success and cultivates a long term relationship with the client. 

To us, a holistic customer experience goes beyond delivering 24/7 support. We also look into helping them with user adoption, ensuring user satisfaction across the company, maximizing their ROI and supporting them with continuous improvement. 

## How do you intend to enhance the customer experience through Cargobase?  

**Thomas**: We are already starting to place more emphasis on elevating customer satisfaction as we want to retain long lasting working relationships with our customers.

One of the strategies we came up with is to split the customer experience team into 3 divisions - Implementation, Customer Success, and Customer Support. In this way, the team can be more focused and dedicated to enhance the existing relationships with our customers.  

## How does Cargobase differentiates itself from other TMS implementation processes and solutions

**Thomas**: Aside from delivering a more holistic customer experience, I’d say we managed to develop the software in a way that doesn’t require a long implementation period because we are a lean and fast team. It can easily be done in as little as 4 weeks and this enables our customers to start driving change quickly.

## How important are strategic partnerships in today’s supply chain landscape?

**Thomas**: They are indispensable for navigating complexity and mitigating risks, while driving innovation and growth. These partnerships enable Cargobase to leverage expertise, resources, and networks to optimize costs and expand market reach.

## How does Cargobase leverage strategic partnerships to offer a comprehensive and seamless shipping experience?

We strategically partner with transportation providers, customs brokers, and technology firms to offer a comprehensive TMS solution. It could revolve around enhancing features such as a live shipment tracking function. We recently partnered with a large Integration Platform-as-a-Service (iPaaS) provider to further enhance our TMS capabilities on the frontend, to become more flexible and easier for our customers. We want to be a differentiator in the logistics industry, so partnerships are extremely important.

## How’s the future of logistics going to be and are there any trends you are witnessing? 

**Thomas**: It’s going to be shaped by technology-driven advancements such as automation, robotics, and predictive analytics. There’ll also be lots of emphasis on how these new  technologies can help streamline operations and enhance efficiency. 

Sustainability will be a key focus. The need to develop eco-friendly transportation modes and supply chain optimization practices to reduce carbon footprint will be increasingly important to shippers and providers. With our upcoming product releases, Cargobase is playing into the initiatives and is showing that they are ready for the future!

Looking to boost your freight perfomance and efficiency? Be sure to contact us to [schedule for a FREE consultation](https://www.cargobase.com/contact-us) and find out how Cargobase TMS can unleash the full potential of your supply chain!

large_Thomas HOD feature series (Landscape format).png

medium_Thomas HOD feature series (Landscape format).png

small_Thomas HOD feature series (Landscape format).png

thumbnail_Thomas HOD feature series (Landscape format).png

xlarge_Thomas HOD feature series (Landscape format).png

xsmall_Thomas HOD feature series (Landscape format).png

Thomas HOD feature series (Landscape format).png

From forging win-win partnerships to developing cutting-edge solutions, Thomas van Merode, plays a key role in Cargobase's growth and innovation as the VP & Head of Customer Solutions and Partnerships.  Let's delve deeper and explore the strategic thinking behind the man himself!


Bridging The Gaps with Thomas van Merode, VP & Head of Solutions and Partnerships of Cargobase

Feeling like your freight shipping costs are spiraling out of control? You're not alone. Many businesses get hit with unexpected fees that eat away at their profits without them knowing. 

According to Global Trade Magazine, supply chain logistics account for 5% to 50% of a product’s total cost. If your logistics costs land close to the 50% mark, then this article is for you!  

We'll unveil 5 hidden freight costs that can easily be reduced. Plus, there’s also a handy checklist with tips to help keep hidden costs in check. [Download it now](https://campaign.cargobase.com/free-hidden-cost-checklist-download).

## Hidden cost 1: Inaccurate freight classification leading to overcharges

Freight classification is the lifeblood of freight pricing. It's a code assigned to your shipment based on factors like weight, density, and value. Carriers use this code to determine the shipping cost. But, what happens when this classification is wrong? They can lead to significant freight bill audit errors.

**Example scenario**: Imagine you're shipping a box of plush toys. You might classify it as "toys (stuffed)," which falls under a specific freight class with a set price. However, what happens if the carrier mistakenly classifies it as "electronics"? This new class would come with a higher price tag, resulting in an overcharge on your freight bill.

### Causes of Inaccurate Freight Classification

These classification mishaps can be caused by:

- **Human error**: A simple typo during data entry can throw the whole classification off.

- **Incorrect descriptions**: Not providing a detailed enough description of your goods can lead to misinterpretation.

- **Outdated NMFC codes**: The [National Motor Freight Classification (NMFC)](https://nmfta.org/nmfc/) system assigns these codes. Using an outdated code can result in inaccurate pricing.

![Young supply chain professional checking on accesorial charges.jpg](https://assets.cargobase.com/Young_supply_chain_professional_checking_on_accesorial_charges_bbee7e0ca3.jpg)

## Hidden cost 2: Unexpected accessorial fees and surcharges 

Beyond the base shipping rate, accessorial fees and surcharges can add to your freight bills. These are additional charges levied by carriers for services beyond standard transportation, like liftgate delivery, address correction, or fuel surcharges. While they may seem insignificant individually, these charges can quickly add up.

**Example scenario**: You have a palletized shipment that requires a liftgate to unload your goods. This service comes with an accessorial fee. But, the carrier also charges you an unexpected "limited access" fee because your delivery location has a narrow driveway. These unforeseen surcharges can significantly inflate your final bill. 

### Causes of unexpected accessorial fees and surcharges

- **Complex Fee Structures**: Carriers often have intricate fee structures with various accessorial charges. This can be challenging to keep track of them all, especially for businesses with frequent shipments.

- **Hidden in the Fine Print**: These fees can often be buried deep within the terms and conditions of service contracts or tucked away in obscure corners of the freight bill.

- **Inconsistent Application**: The application of accessorial fees can vary depending on the carrier, route, and even the individual driver.

![Supply chain professional negotiating rates over a laptop](https://assets.cargobase.com/Supply_chain_professional_negotiating_rates_over_a_laptop_04bf9f98aa.jpg)

## Hidden cost 3: Not negotiating rates on carrier contracts

Carrier contracts can be a double-edged sword. While contracts lock in baseline shipping rates, it’s easy to miss out on significant cost savings opportunities from lower rates in the spot market, or renegotiating more favorable rates upon contract renewal. These missed opportunities become hidden costs that silently inflate your freight shipping costs.

**Example scenario**: You happen to renew your freight contract with a carrier without renegotiating the terms. Over time, shipping volumes or industry standards might have shifted, presenting an opportunity for a more favorable rate. But, because there was no renegotiation, you could be stuck paying an outdated rate that doesn't reflect current market conditions. 

### Causes of missed carrier contract negotiation opportunities

- **Too much focus on convenience**: Renewing with a familiar carrier seems easier (but possibly more expensive) than the perceived hassle of looking for alternatives and negotiating.  

- **Limited market rate knowledge**: Without a clear understanding of current market rates and competitor offerings, it's difficult to know what's a fair freight rate.

- **Overemphasis on base rates negotiations**: Negotiations often solely focus on securing a lower base rate, neglecting other cost-saving opportunities like negotiating specific accessorial fees or fuel surcharge caps.

<ProTip/>

![Supply chain ops team discussing late payment issue](https://assets.cargobase.com/Supply_chain_ops_team_discussing_late_payment_issue_60a1b03681.jpg)

## Hidden cost 4: Late payment penalties

In the fast-paced world of freight shipping, even a slight delay in settling your bills can trigger hefty late fees. These penalties are unnecessary freight costs that can ultimately erode your profits.

**Example scenario**: There has been a confusion with the invoices and it causes you to miss the due date on your freight bill. The carrier imposes a late payment penalty, adding an extra layer of cost to your shipment. These late fees can be a significant burden, with some carriers charging upwards of 10% or a flat fee per day past the due date. Over time, these penalties can add up and eat away at your bottom line, potentially impacting your creditworthiness with the carrier.

### Causes of late payment penalties

- **Disorganized Invoices**: With multiple shipments and carriers, keeping track of due dates can be challenging. A single missed invoice can result in a late payment penalty.

- **Manual Processes**: Manual invoice processing can lead to delays and missed deadlines, especially for businesses with high shipment volumes.

- **Varying penalty structures**: The terms of late payment penalties can differ significantly between carriers, making it challenging to keep track when there are many carriers to work with for different shipments.

![Foggy clouds approaching freight carrier](https://assets.cargobase.com/Foggy_clouds_approaching_freight_carrier_5b5c720048.jpg)

## Hidden cost 5: Inefficient routing and carrier selection

Choosing the right route and carrier for your shipment can have a significant impact on your bottom line. While it’s tempting to stick with the same carriers, it can lead to inefficient routing which inflates your costs.

**Sample scenario**: You're consistently shipping goods across the country using the same carrier and route. While it might seem convenient, a more efficient route or a different carrier offering competitive rates might exist. By not exploring these options, you could be missing out on significant cost savings.

### Causes of Inefficient routing and carrier selection

- **Limited visibility**: Businesses might rely on established carrier relationships without exploring alternative options that could offer better pricing or service for specific routes.

- **Lack of data analysis**: Without proper data analysis on shipment volumes, lane breakdowns, and carrier performance, it's difficult to identify areas for optimization.

- **Manual processes**: Manual carrier selection processes can be time-consuming which makes it tempting to just work with the carriers you know. 

![Supply chain professionals working on TMS](https://assets.cargobase.com/Supply_chain_professionals_working_on_TMS_5baaff558e.jpg)

## How Transportation Management Systems help with hidden freight costs

Many shippers invest in [transportation management systems](https://www.cargobase.com/) (TMS) such as Cargobase TMS to help support their freight operations and achieve a comprehensive view of their shipping costs.

Here are some ways a modern TMS can help:

- **Clear communications**: Modern TMS platforms are great at centralizing communications between carriers and shippers at every stage of the freight journey. This significantly reduces the chance of miscommunication, which is a common cause of unexpected costs. Depending on the TMS, shippers can also conveniently negotiate freight rates efficiently with carriers. 
 
- **Smart reminders**: TMS platforms can remind shippers to initiate negotiations with carriers before the contract expires. They can also be configured to be reminders for payment as well. 

- **Comprehensive rate management capabilities**: Rate management features help shippers retrieve contract rates more efficiently than referencing spreadsheets, which are prone to human error.  It can also provide visibility into accessorial fees or surcharges that may otherwise be overlooked.

- **Invoice matching**: TMS platforms have [invoice matching](https://www.cargobase.com/invoice-matching) capabilities to detect discrepancies that need to be addressed. 

- **Freight analytics**: [Analytics](https://www.cargobase.com/reporting-analytics) in a TMS today provide shippers with valuable data that can be used to optimize freight operations, lower costs and track carrier performance.

Interested to learn how Cargobase can help shippers like you? [Book a demo](https://www.cargobase.com/contact-us).

















Female supply chain professional checking costs

large_Female supply chain professional checking costs.png

medium_Female supply chain professional checking costs.png

small_Female supply chain professional checking costs.png

thumbnail_Female supply chain professional checking costs.png

xsmall_Female supply chain professional checking costs.png

Female supply chain professional checking costs.png

Uncover hidden freight costs that have been eating away at your bottom line. Download our FREE checklist to help your team stay on track.

5 Hidden Freight Costs You Can Easily Reduce (FREE checklist)

Did you know that freight logistics is considered the backbone of global trade? 

According to [SeaRates](https://www.searates.com/blog/post/unveiling-the-fascinating-world-of-logistics-surprising-industry-facts), the United States alone spends over $1.5 trillion dollars on freight logistics. The value alone shows how critical of a role it serves to a country.  

But, like every backbone as a support pillar, it has to be strong enough to support what it’s tasked to do, and there’s a ton of complicated red tape to go through in order to ensure it doesn’t crumble. 

Sounds like a tall order for success? Fret not. In this guide, we reveal the necessary details that you will need to master as a beginner or even as a seasoned supply chain professional looking for a refresher! 

So, sit back and read on to gain some serious freight logistics expertise! 

![container cargo ship in sea](https://assets.cargobase.com/container_cargo_ship_in_sea_87e0abb728.jpg)

## What is freight logistics
Freight logistics is defined as the process of planning, organizing, and executing the movement of goods from origin to destination. It encompasses everything from selecting the most suitable transportation mode to ensuring safe delivery and managing customs clearance (for international shipments). 

![Supply chain managers in warehouse](https://assets.cargobase.com/Supply_chain_managers_in_warehouse_90af20f9f1.jpg)

## Why efficient freight logistics is important for business
Efficient freight logistics is essentially what keeps your supply chain moving smoothly. Hence, it’s a key process that can make or break a business. An optimized freight logistics process can positively impact your business in several ways:

**Reduced costs**: By choosing the right mode of shipping and optimizing routes, cost savings can significantly increase by a huge margin. 

**Improved customer satisfaction**: In today's competitive landscape, fast and reliable shipments are paramount for customer satisfaction. Freight logistics ensures your products reach customers on time and in good condition. Delays, damage during transport, or missed deliveries can severely impact customer experience and loyalty..

**Inventory optimization**: Efficient freight logistics helps businesses maintain optimal inventory levels. By streamlining transportation and delivery times, you can avoid stock outs that disrupt sales and lead to lost revenue. Conversely, it can also help prevent overstocking, which ties up capital in unsold products and increases storage costs.

**Increased efficiency**: One of the core foundations of a well-managed freight logistics consists of streamlined processes across the board. This allows businesses to be more efficient and focus on developing core competencies like product development, marketing, and customer service.

![Representation of freight](https://assets.cargobase.com/Representation_of_freight_1a75be95b5.jpg)

## Who are the key players in freight logistics
The world of freight logistics is a vast one! In this entire network, it involves several players, each with a specific role in ensuring goods move smoothly from origin to destination. Here's a breakdown of the key players:

**Shippers**: These are the businesses or individuals who need to transport goods. They can be manufacturers, wholesalers, retailers, or even individuals sending personal belongings. Shippers are responsible for packaging their goods properly, preparing necessary documentation, and selecting a logistics provider.

**Carriers**: These are the companies that are responsible for moving the goods from the origin to the destination. 

**Freight Forwarders**: These companies mainly act as intermediaries between shippers and carriers. They can assist in handling tasks such as:
- **Consolidation**: Combining smaller shipments from multiple shippers into one larger shipment for cost-efficiency.
- **Cargo insurance**: Arranging insurance coverage for the goods during transportation.
Handle complex customs clearance: Ensuring all necessary documentation is accurate and complete, classifying goods correctly, calculating duties and taxes, and facilitating communication with customs officials.
- **Manage import/export documents**: Preparing and submitting required documents such as commercial invoices, packing lists, certificates of origin, and bills of lading.
- **Negotiate with international carriers**: Securing competitive rates and booking space on vessels or airplanes.

**Third-Party Logistics Providers (3PLs)**: [3PLs](https://www.cargobase.com/blog/3pl-vs-4pl:-know-the-differences-to-elevate-your-supply-chain) offer comprehensive logistics services beyond just transportation and can serve as reliable partners for shippers who are looking to outsource many aspects of their logistics process. Some of the services include:
- **Inventory management**: These consist of storage solutions and expertise to manage your inventory safely. Some even provide advanced warehouse management systems for better tracking.
- **Cost-effective delivery**: 3PLs have extensive transportation networks and can deliver products on-time using the most cost-effective methods via various modes of freight (trucks, sea, air).
- **Route planning**: Selecting the most efficient and cost-effective routes for the shipment.

<ProTip/>

![Overview of sea port](https://assets.cargobase.com/Overview_of_sea_port_cd13542d80.jpg)

## What are the different shipping modes in freight logistics
Understanding the types of shipping options available is critical in freight logistics. Each of them presents their own advantages and disadvantages when it comes to considering key factors such as shipping cost, speed, reliability, and efficiency. 

Here's a comprehensive breakdown of the most common shipping modes to help you understand them better and choose the right one for your needs:

**Truck freight**: This freight mode is essentially carried out by cargo trucks of different sizes to transport goods over land. It offers flexibility for a wide range of shipment sizes and can be used for both short and long distances. Compared to other modes of transport, truck freight can be faster for regional deliveries but may be more expensive for long distances or large volumes. Truck freight is usually often classified in these two modes: 

- **Full truckload (FTL)**: Essentially a freight mode for cargo that fills an entire truck container. It’s most ideal for large shipments, offers faster transit times and potentially lower per-unit costs for bulk quantities. However, FTLs tend to be less cost-effective for smaller shipments.
- **Less than truckload (LTL)**: For shipments that are not as cost-effective for an FTL freight, shippers usually look at Less than truckload (LTL) freight as an alternative. LTL freight is more suitable for shippers with smaller shipments and are willing to share space on a truck with other consignments. However, transit times may be longer due to additional pick-up and delivery stops for other LTL shipments along the route.

**Air freight**: Probably the fastest option for urgent shipments, but also the most expensive. Ideal for high-value goods, perishables with short shelf lives, or situations where speed is paramount.

**Ocean / Sea Freight**: Arguably the most common shipping mode. Container ships transport volumes of cargo across extensive shipping routes worldwide at a fairly low cost and they can be often classified between these two modes: 

- **Full container load (FCL)**: Shippers opt to utilize an entire container for a single shipment, offering faster transit times and lower per-unit costs for large volumes. These are often selected for larger shipments which could justify the costs better. 
- **Less than container load (LCL)**: LCL is generally more suitable for smaller shipments as it requires sharing of container space with other shipments. It is also more cost-effective but might lead to potentially longer transit times due to longer consolidation and deconsolidation processes.

**Rail freight**: Rail transportation offers a compelling option for shippers that are looking to ship their goods at rates lower than truck freight. Due to the size of their carriages, it could also be a decent alternative to ship goods in bulk. 

Each of these shipping modes have its own limitations. It's actually common to have more than one freight mode involved in many shipments as it can be more efficient and cost-effective at times. This is commonly known as multimodal/intermodal transportation. 

<ProTip/>

![Female supply chain professional working in a warehouse](https://assets.cargobase.com/Female_supply_chain_professional_working_in_a_warehouse_25c526eddd.jpg)

## The freight logistics process
Though the freight logistics process is linear from a broad perspective, there are many complications that can render it a challenge to ensure a shipment gets through successfully. Here’s an overview of how the process looks: 

### 1. Freight planning and preparation
Whenever there’s a shipment to be shipped out, shippers will first need to understand and gather the important information for carriers or freight forwarders to transport them. These could include details such as the freight class, weight, dimensions, addresses, [incoterms](https://www.cargobase.com/blog/guide-to-incoterms-2023), and any special requirements for the cargo.

Shippers will usually reference these details and consider important factors such as cost, speed, reliability, and distance to help them determine the best shipping method for a particular shipment. 

For example, if the shipment is not big in size and quantity, and has a long lead time to spare, a [less than truckload](https://www.cargobase.com/blog/all-you-need-to-know:-less-than-truckload-(ltl)-shipping) shipping mode could be the most cost-effective option. However, if it’s an [ad-hoc shipment](https://www.cargobase.com/blog/complete-guide-spot-freight) with a crucial deadline for an important customer, air freight might be the best option to avoid losing a customer. 

Once the most appropriate shipping mode has been decided, the shipper will start getting quotes from different carriers, freight forwarders or logistics providers based on the freight shipment details and requirements. 

<ProTip/>

### 2. Packaging and labeling
While receiving quotes, the cargo is sent to be packaged securely with proper cushioning or protection. This is an important part of the process to reduce the risk of damaging the goods while transporting, which can be costly if it happens. 

At the same time, labels with key information such as addresses and contact details will need to be attached to the goods for tracking, delivery, safety, and compliance. purposes. For international shipments, they may tend to also require additional labeling with information that meets customs regulations and requirements. 

Shippers will also prepare documentation such as commercial invoices, and bills of lading (BOLs) which serve as a receipt for the shipment and a contract with the carrier. 

### 3. Shipment execution
By this stage, a logistics service provider (LSP) should have been selected for shipping the freight over to the destination. 

While transporting, it’s important to be able to [track the shipments](https://www.cargobase.com/real-time-visibility). Traditionally, many shippers have been tracking via emails, phone calls, or manual trackers, which are inefficient. Today, one of the best ways to track is through a real-time visibility tool with a communications platform which allows shippers to check the status of their shipments in the fastest way possible. 

This will also come in handy especially when unforeseen circumstances such as delays, or custom hold-ups occurred. Such situations can then be easily reported and if a solution is required, it can be easily communicated to resolve the issues as well. 

### 4. Completion
At this point in time, the shipment should already arrive at the destination and a confirmation of receipt from the recipient has to be sent to the shipper. 

An invoice will then be issued by the LSP for the freight transportation service provided, including any additional charges incurred during the shipment execution stage. Once it’s received, the shipper will have to [review the invoices](https://www.cargobase.com/invoice-matching) and ensure accuracy of the charges based on the initial agreement. 

As more companies are getting more stringent in an increasingly disruptive world, shippers are also looking for sophisticated [freight analytics tools](https://www.cargobase.com/reporting-analytics) to measure their freight logistics performance. By analyzing the valuable insights generated by these tools, shippers can reliably refine their approach for future shipments, identify areas for improvement, and optimize cost reduction. 

## Conclusion
So, there you have it. We certainly hope you learnt a ton of freight logistics essentials to help you make informed decisions and ensure your shipments reach their destinations smoothly.

That being said, freight logistics is only going to be increasingly complicated to handle. This is why we develop Cargobase TMS, the leading transportation management system that has helped many supply chain professionals streamline their freight logistics processes easily to boost efficiency and maximize profits. 

To find out more about how Cargobase TMS can help your company achieve the same success, be sure to contact us to [find out more](https://www.cargobase.com/contact-us)!


Freight Logistics 101 The Essentials to Master Smooth Shipping

large_Freight Logistics 101 The Essentials to Master Smooth Shipping (3).png

medium_Freight Logistics 101 The Essentials to Master Smooth Shipping (3).png

small_Freight Logistics 101 The Essentials to Master Smooth Shipping (3).png

thumbnail_Freight Logistics 101 The Essentials to Master Smooth Shipping (3).png

xsmall_Freight Logistics 101 The Essentials to Master Smooth Shipping (3).png

Freight Logistics 101 The Essentials to Master Smooth Shipping.png

Get your shipping foundation right with this freight logistics 101 guide!

Freight Logistics 101: The Essentials To Master Smooth Shipping

In the world of international trade, there are many risks of penalties to look out for. Two particular examples which are also often shrouded in confusion, are demurrage and detention charges. If not careful, these charges can quickly compound into significant financial burdens, impacting both businesses and consumers alike.

But, worry not. Today we’ll dive deeper into understanding the details and nuances of these shipping charges. By the end of this article, you will be well-equipped with the knowledge to navigate and avoid incurring them with confidence!

## Demurrage and detention: What’s the difference?

![Demurrage and Detention Charges chart](https://assets.cargobase.com/Demurrage_and_Detention_Charges_chart_ecdf267fce.png)

Understanding the difference between demurrage and detention is crucial for navigating the complexities of shipping costs. While both involve fees associated with container delays, they apply in distinct situations and impact different aspects of your supply chain.

### What is Demurrage?

Demurrage is a form of shipping fee charged by the terminal operator when a container exceeds its allotted "free time" after being unloaded from a ship at the terminal. 

Free time essentially refers to the time span after a container is unloaded from the ship and remains within the terminal, free of charge. It usually lasts 3-7 days, depending on the port and agreement. This range of time allows for customs clearance, paperwork, and other processes before the container must be moved.

Here are some common causes that result in demurrage fees being incurred: 

- **Customs clearance delays due to port congestion**: Delays in obtaining customs clearance can prevent the container from leaving the terminal and increase the time spent within the terminal.

- **Incorrect or incomplete documentation**: Missing or inaccurate paperwork can hold up the container's release from the terminal.

- **Lack of storage space at the terminal**: If the terminal is congested and lacks space for your container.

- **Unforeseen logistical issues**: Unexpected events like mechanical breakdowns or inclement weather can cause delays in logistical activities within the terminal and be penalized with demurrage charges as a result.

### What is Detention?
Detention, also known as a per diem fee, is another form of shipping fee. This time, it’s imposed by the shipping line when a container is held onto by the shipper or consignee for longer than the agreed-upon period outside of the terminal. 

Similar to demurrage charges, there is also a free period for unloading or handling the container after it leaves the terminal. This time frame however, needs to be negotiated in the booking contract and can vary depending on the specific agreement and intended use of the container.

Exceeding the agreed-upon free time will then lead to detention charges levied by the shipping line. Some of the common reasons on why detention charges are incurred could be:

- **Inefficient inland transportation**: Delays in transporting the container from the terminal to its destination and returning it.

- **Delays in warehouse operations**: If the container is held up at a warehouse due to slow unloading or other issues.

- **Unforeseen events**: Unexpected events like bad weather, strikes, or natural disasters can delay the return of the container.

- **Lack of planning or communication**: Poor planning and communication between parties involved (shipper, consignee, carrier).

## Who is responsible for demurrage and detention shipping charges?
![Supply chain professional talking on phone in a container port](https://assets.cargobase.com/Supply_chain_professional_talking_on_phone_in_a_container_port_39e7cf790f.jpg)

The specific party responsible for the demurrage and detention charges is ultimately determined by the agreed upon [incoterms](https://www.cargobase.com/blog/guide-to-incoterms-2023) in the shipping contract. These internationally recognized terms define responsibilities at various stages of the journey.

For example, in a demurrage scenario with Ex-Works (EXW) terms, the buyer (consignee) is responsible for delays once the container is ready at the origin terminal. Conversely, under Delivered at Place (DAP) terms, the seller (shipper) shoulders demurrage charges until the container arrives at the designated destination terminal.

Similarly, the Free On Board (FOB) term places detention responsibility on the buyer after the container is loaded onto the ship. However, with Cost, Insurance, and Freight (CIF) terms, the seller remains accountable for detention until the container is discharged at the destination port.

<ProTip/>

## How to avoid demurrage and detention shipping charges?
![orange and green cargo truck at a container port](https://assets.cargobase.com/orange_and_green_cargo_truck_at_a_container_port_75a4907b7b.jpg)

In the world of international trade, scenarios that could lead to demurrage or detention charges can happen anytime. But, there are definitely ways you can avoid them with some proactive strategies. 

### 3 Ways to avoid demurrage charges

#### Proper freight documentation

There can be a lot of coordination required to manage the amount of documentation required for every shipment, which is prone to error. This is when shipments might get delayed at the port and you will be charged with demurrage fees. 

So, be sure to ensure all paperwork is complete and accurate before the container arrives at the terminal. Better yet, leverage technology to ensure compliance and documents requirements are met.  

<ProTip/>

#### Accurate cargo details

For terminal operators, your cargo information is the most important detail they will require to provide you with clearance. Always ensure there’s accurate and detailed descriptions of your cargo weight, dimensions, and packing details in your booking to avoid delays during container inspection. 

#### Plan ahead your every move

With proper planning, you can stipulate the time of your pick-up and transportation in advance to ensure a timely departure from the terminal. Always aim to move your container out as quickly as possible.

### 2 Ways to avoid detention charges

#### Efficient transportation and route planning

Once the container is out of the gates, container arrival times are  key to decrease the chances of getting a detention charge.  It’s good practice to plan your inland transportation based on realistic arrival times and container weight/dimensions. 

Optimizing your transportation routes can also help to avoid congested areas, factor in potential traffic delays during peak hours, and if need be, consider intermodal transportation for long distance freight. Be sure to also remain in contact with your logistics partner at all times to check on status and receive important updates. 

<ProTip/>

#### Optimize warehouse operations

Warehouse operations are no less complicated than how it is at the ports, and it could make or break your chance of avoiding detention charges frequently. 

You can optimize your warehouse operations by ensuring there’s adequate manpower and resources to facilitate efficient container unloading, which helps reduce bottlenecks. It’s also wise to ensure that your warehouse’s inventory and storage management systems are in check to prevent any form of stalling caused by slow retrievals. 

### Best practices to avoid both demurrage and detention charges

#### Negotiate for longer free time

While it’s almost impossible to negotiate on demurrage or detention fees, there’s a chance that you might be able to negotiate for longer free time. This is especially beneficial for high volume shipments and can significantly increase your chances to prevent getting charged.

#### Investing in shipper-owned containers (SOCs)

This applies mostly for shippers who have very frequent freight operations that require containers. For the long run, shippers can assume full ownership of their containers and save a lot more by reducing spendage on carrier-owned containers (COCs). By spending less on COCs, chances of getting a detention or demurrage charge also gets reduced. 

## Backing your demurrage and detention prevention strategies with a Transportation Management System

![Shipper in warehouse working on laptop to get freight shipment out](https://assets.cargobase.com/Shipper_in_warehouse_working_on_laptop_to_get_freight_shipment_out_1d94e9d372.jpg)

There can be a lot to manage when it comes to avoiding detention and demurrage charges. This is where a Transportation Management System like Cargobase TMS can make a difference. Our solution helps you manage shipment documentation easily, use built-in approval workflows to ensure compliance and track shipments from various logistics providers, so you can focus on making better decisions for all your shipments. 

Have you been bothered by demurrage and detention charges lately? Come [find out more](https://www.cargobase.com/contact-us) how our Transportation Management System can help you avoid unnecessary charges. 







large_Demurrage vs Detention

medium_Demurrage vs Detention

small_Demurrage vs Detention

thumbnail_Demurrage vs Detention

xsmall_Demurrage vs Detention

Demurrage vs Detention

Never be confused between demurrage and detention again with this structured guide developed for every supply chain professional! 

Demurrage vs Detention: What Are They and How to Avoid Them

## What is Less Than Truckload (LTL)?

Less-than-truckload (LTL) is a shipping term for a cost-effective freight transportation mode designed for shipments that occupy less than the full capacity of a standard truck trailer.

Unlike full truckload (FTL) shipping, which utilizes an entire trailer for a single shipment, LTL consolidates multiple smaller shipments from various shippers onto the same truck.

## Key characteristics of less than truckload (LTL) shipping

LTL shipments tend to have smaller freight volumes that weigh between 150 and 15,000 pounds, making it a popular choice for a wide range of industries that are known to ship out small freight volumes often. Some of these industries include:

- Manufacturing
- Retail
- E-commerce
- Consumer goods
- Industrial products

Depending on the pallet sizes, each shipment usually comprises 10 pallets or less.

## How are less than truckload (LTL) freight rates calculated?

![Supply chain professional inspecting cargo](https://assets.cargobase.com/Supply_chain_professional_inspecting_cargo_00bbb5df0e.jpg)

LTL freight rates are calculated mainly based on a couple of factors.

The base rate is usually determined by the freight class. Freight class is a standardized rating system developed by the [National Motor Freight Traffic Association](https://nmfta.org/) to categorize less-than-truckload (LTL) shipments based on various characteristics. 

Essentially, the freight class spans an index range between 50 (densest, easiest to handle) to 500 (least dense, most difficult to handle). The lower the density, the chances of getting a lower freight rate will be higher and vice versa. 

Each freight class will then have a corresponding NMFC (National Motor Freight Classification) code, which is a more specific identifier for individual commodities within a class to further determine a justified freight rate for a shipment. These codes are determined based on 4 main factors:

- Density
- Ease of handling
- Stowability
- Liability

Then it expands to the distance. The further the truck will need to travel to get the goods to be delivered, the more costly the freight rate will be. 

Additional costs could include special requirements such as requesting a driver to perform additional tasks (e.g. collecting a proof of delivery) or if there’s a need for special handling if the item is fragile. Some carriers also provide expedited LTL freight options which will also factor in additional costs.  

## Advantages of Less Than Truckload (LTL) Shipping

![Truck freight container loading.jpg](https://assets.cargobase.com/Truck_freight_container_loading_ff4fa5e1d1.jpg)

The essence of how less-than-truckload (LTL) shipping works has made it a popular alternate option for shippers due to a couple of advantageous reasons:

### LTL is a cost effective mode of shipping

Less-than-truckload (LTL) shipping essentially allows shippers to share the freight space with other shippers, which leads to reduced costs. This is especially ideal for shippers with smaller shipments as loading them all to a single truck would likely not justify the cost of it. 

Shippers that don’t possess the capital to invest in their own trucks and drivers can also leverage the option of LTL freight to further save costs. 

### LTL freight offers flexibility

From a single pallet to several pallets, LTL freight caters to a wide range of shipment sizes, without requiring the need to fill an entire trailer which is perfect for businesses with fluctuating shipping needs. 

### LTL is a greener option

LTL freight is arguably more environmentally-friendly due to the fact that it’s an option that optimizes truck space by consolidating multiple shipments. In this way, there could be lesser trucks on the road which will lead to decreased carbon emissions. 

## Disadvantages of Less Than Truckload (LTL) Shipping

![Young man driving a van close-up](https://assets.cargobase.com/Young_man_driving_a_van_close_up_fe565a12e3.jpg)

Like every freight mode, less-than-truckload (LTL) shipping is not perfect and has its disadvantages to consider too: 

### LTL shipping may not be the fastest

[Freight trucks](https://www.cargobase.com/blog/what-is-a-straight-truck-all-you-need-to-know) that are on LTL duty are transporting cargo from different shippers and will have to deliver them at multiple stops. This might increase the chances of having a delayed shipment if a particular set of goods will be delivered at the last stop, or if there are traffic jams in between stops. 

Therefore, it’s not a freight mode particularly suitable for companies with frequent shipments that require a short lead time. 

### LTL does not provide as much cargo handling control for shippers

Due to the fact that less-than-truckload (LTL) shipments are a combination of different freight from different companies, shippers will only have limited control when it comes to handling freight. 

The contracted freight forwarder or carrier will have to handle different shipments at multiple stops which may need the goods to be moved around more often than an FTL shipment. As a result, the chances of damage to the cargo could be potentially higher. 

### LTL may not be suitable for shipping oversized items or hazardous materials

Generally, less-than-truckload (LTL) shipments are more favorable for smaller shipments with a smaller volume and there may not be enough room for oversized cargo. 

Freight forwarders and carriers will also very likely avoid the risk of shipping hazardous materials for an LTL shipment because the stakes of bearing responsibilities to compensate other companies involved in the same shipment are too high. 

### How to Optimize for Less Than Truckload (LTL) Shipping

![Supply chain manager checking freight status on laptop](https://assets.cargobase.com/Supply_chain_manager_checking_freight_status_on_laptop_11c686e004.jpg)

LTL shipping might seem like another regular freight activity that helps to get a shipment from point A to B. But if it’s optimized to be more efficient and affordable, it can reduce freight costs and delivery times which leads to driving more value for the business. Here are some key strategies to consider:

### Analyze LTL shipping needs

Each company’s shipping needs are different and it’s critical to understand them as much as possible - all the way from typical shipment sizes to frequency and destinations.

Companies can also dive deeper to see if there are shipping opportunities to consolidate across departments or product lines and review packaging practices to see if there's room to reduce weight or volume. 

<ProTip/>

### Classify accurately

After determining a shipment size, the shipment will then need to be classified according to its relevant freight class and NMFC codes for each LTL freight. This is absolutely critical because misclassification can lead to higher costs or even delays. 

### Package & palletize efficiently

As goods in an LTL shipment tend to be moved around more often, it’s important to package them well to minimize wasted space and reduce the chances of damage to the goods. 

It’s also wise to consider reusable packaging options for frequent shipments and environmental benefits. After palletizing them, it should be ensured that the goods are stacked efficiently to maximize truck space. 

### Compare LTL freight quotes

Never put all your eggs in one basket. There are countless providers out there that can provide LTL freight services so you should not settle for just one quote. 

By sourcing for more competitive freight quotes, companies have more room to negotiate and increase their chances of saving on cost. While considering the best [freight rate](https://www.cargobase.com/freight-management) for a particular shipment, factors such as transit times, service reliability and accessorial charges are some of the attributes worth looking at. 

### Negotiate freight rates strategically

Freight rate negotiation is an art form and there could be so many nuances that can influence the success of each negotiation. A good starting point could be from shipment volume and consistency. 

Many providers such as those from a [3PL and 4PL](https://www.cargobase.com/blog/3pl-vs-4pl:-know-the-differences-to-elevate-your-supply-chain) will favor an opportunity presenting consistent shipping frequency with high volume shipment. This is where they are more likely to offer a lower freight rate in exchange for a high frequency shipment opportunity. Usually, this is dealt through a freight contract. 
  
Being flexible on factors such as pickup/delivery times or prepayment options can also help to secure a discounted rate in exchange. Be sure to also nurture the relationship with the providers upon every successful rate agreement to further increase the chances of getting better freight rates for the long term.  

### Analyze performance

Insights from the performance of each LTL shipment can reveal tons of valuable information that are important for optimization. Again, with a transportation analytics tool, companies should be able to track various key metrics such as transit times, damage rates, and costs per shipment to measure success and identify areas for improvement. 

### Stay informed

The supply chain industry is one of the most dynamic industries in the world so things related to LTL shipping can always change without you knowing soon enough. Therefore, keeping up with industry trends and changes in freight regulations or petrol costs can help provide more insights for companies to adapt an LTL freight strategy accordingly. 

## The Best Way to Manage Less Than Truckload (LTL) Freight

As you can see, there’s a lot going on in a single freight mode such as LTL and it is a real challenge for many supply chain professionals to make the best out of it, even today. This is why transportation management tools such as Cargobase TMS are developed to help navigate through the challenges by providing a holistic platform that enables complete control over every freight mode. 

To find out further about how Cargobase TMS can help optimize your company’s LTL freight processes and more, be sure to [contact us](https://www.cargobase.com/contact-us) for more information. 

All You Need to Know Less Than Truckload (LTL) Shipping

large_All You Need to Know Less Than Truckload (LTL) Shipping (1).png

medium_All You Need to Know Less Than Truckload (LTL) Shipping (1).png

small_All You Need to Know Less Than Truckload (LTL) Shipping (1).png

thumbnail_All You Need to Know Less Than Truckload (LTL) Shipping (1).png

xsmall_All You Need to Know Less Than Truckload (LTL) Shipping (1).png

All You Need to Know Less Than Truckload (LTL) Shipping.png

In today's dynamic freight transportation landscape, not every freight load will fill an entire truck all the time. Supply chain managers have to act quickly to optimize freight loads while meeting customer demands. 

This is when less than truckload (LTL) shipments come into the picture. 


All You Need to Know: Less Than Truckload (LTL) Shipping

## What is Double Brokering

Double brokering is the unauthorized act of a freight broker or carrier transferring a shipment to another carrier without the knowledge or consent of the original shipper. 

Double brokering is essentially an unethical practice where the initial contracted party acts as a middleman, outsourcing the transportation to a third-party carrier without informing the shipper. In fact, according to [MAP-21](https://www.govinfo.gov/content/pkg/PLAW-112publ141/pdf/PLAW-112publ141.pdf), double brokering is an illegal offence.

If it goes unnoticed, there can be serious implications for **ALL parties** involved:

**Shippers**: Lose control over their cargo, potentially exposing it to increased risk of damage, delays, or even theft. They might face legal repercussions if the secondary carrier lacks proper licensing or insurance.


**Brokers**: Damage to reputation and credibility. There’s also a possibility that a lawsuit might be raised against the brokers for engaging in an illegal double brokering practice.


**Carriers**: May not receive the agreed-upon payment, leading to financial losses and strained relationships with shippers. Carriers operating without proper authorization can also be penalized or even go to jail for double brokering.


**The entire supply chain**: Suffers from disruptions, delays, and potential reputational damage due to the lack of transparency and accountability.

<ProTip/>

## How Double Brokering Takes Place

![Shipper talking to a freight forwarder](https://assets.cargobase.com/Shipper_talking_to_a_freight_forwarder_d495f3de3f.jpg)

Due to the complexity of supply chains, double brokering is actually a very common occurrence. Although it usually happens with fraudulent intentions, at times it could happen unintentionally as well. But, regardless of the intention, double brokering cases are a very costly matter and it has been known to [cause the industry to lose over $100m every year](https://www.freightwaves.com/news/is-double-brokering-legal). 

### Example scenarios of fraudulent double brokering

**Bait and switch**: A broker secures a shipment at a competitive rate then secretly hires a cheaper, potentially unlicensed carrier to ship out the goods and pockets the difference earned. 

**Fictitious carrier**: Works like the bait and switch scenario. But this time, the broker approaches a shipper using a fake carrier identity instead to secure a shipment deal at a premium, then subcontracts the work to a legitimate carrier at a lower rate. 

**Network of greed**: This could apply to both carriers and brokers who are looking to “take on more” shipments than they can handle. They tend to promote themselves as consistent service providers at first glance but in actual fact, they outsource the shipments to other carriers within their network without informing or getting the consent of the shipper. 

Remember. Every fraudulent case is an illegal act so be sure to report double brokering cases of such nature to the authorities if it happens. 

### Example scenarios of unintentional double brokering

**Miscommunication**: Misunderstandings between brokers and carriers can lead to double booking. For example, a broker might accidentally assign the same load to two different carriers. 

**Uninformed carrier substitution**: Sometimes, due to [unforeseen circumstances](https://www.cargobase.com/blog/charting-the-unknown:-freight-management-in-a-vuca-era) (e.g. a [freight truck](https://www.cargobase.com/blog/what-is-a-straight-truck-all-you-need-to-know) breakdown), a carrier may subcontract the load to another carrier without notifying the broker or shipper to avoid delays. 

## How to Identify Double Brokering Schemes

![freight broker said ok](https://assets.cargobase.com/freight_broker_said_ok_9237822cd6.jpg)

Like any other modes of crime, double brokering can be identified before it occurs. Here are some of the most telling signs of double brokering schemes to look out for: 

### Lack of information to verify
Shady brokers and freight carriers tend to not have tallied information when you ask for it. In fact, they will be hesitant to provide them and respond with tons of excuses in return. It’s a definite red flag that signals time to look for other brokers or carriers. 

### Unusually low freight rates
Brokers that quote way lower than market rates are usually too good to be true. There’s a high probability that the broker is operating on a bait and switch scheme to acquire your load before outsourcing it to a cheaper carrier to earn the returns.  

### Pressure to book quickly
There is no need to book a shipment as soon as possible if there is no compelling reason to do so. Legitimate brokers and [carriers](https://www.cargobase.com/blog/3pl-vs-4pl:-know-the-differences-to-elevate-your-supply-chain) will understand that shippers will need time to evaluate options instead of chasing them to agree with the quotes. Not only is this disrespectful but it’s also a sign that there is a need to prevent you from finding out about their schemes. 

## Best Practices to Safeguard Against Double Brokering

![Freight brokers working in a brokerage firm](https://assets.cargobase.com/Freight_brokers_working_in_a_brokerage_firm_5883141a17.jpg)

To guard against becoming a victim of fraudulent or unintentional double brokering, it’s also wise to learn some of the best practices from supply chain professionals around the world. 

### Vet the carrier or broker

Do your due diligence before engaging a carrier or broker. Sources of credibility could include their business registration statuses, licenses, insurance or even reviews online. Government body sites such as the [FMCSA website](https://www.fmcsa.dot.gov/registration/ask-fmcsa?keyword=&topic=23021) are some of the most trusted sources of information to see if a carrier or broker is registered to operate legally. 

### Establish clear communications at all times

Miscommunication is one of the causes for unintentional double brokering. One of the best ways to foster clearer communication is to establish a centralized communications platform, where all stakeholders can exchange and retrieve information in the most efficient manner. 

<ProTip/>

### Work with only trusted carriers

Trust is paramount in the supply chain and logistics industry, especially when it involves time-critical shipments where errors can be costly. 

Hence, working with carriers you can trust to deliver and be transparent at all times is key. Apart from doing due diligence at the start, it’s also important to monitor and [measure the performance](https://www.cargobase.com/reporting-analytics) of your freight partners over time to ensure they are reliable. 

### Invest in a Transportation Management System (TMS)

Today’s Transportation Management Systems (TMS) come with many features that give shippers more control and visibility over their freight rates and shipments. With compliance checks in place, you can limit your exposure to double brokering.

Cargobase TMS offers a user-friendly interface for you to work with your trusted logistics providers. It also ensures consistency and compliance across all quote requests and shipment orders. All communication with freight forwarders is captured and tracked on-platform to minimize the risk of miscommunication.

Furthermore, you can monitor the performance of your logistics providers and rank them by metrics like On-Time Performance (OTP) and Proof of Deliver (POD).

As a holistic transportation management solution, Cargobase TMS is designed to enhance every aspect of a shipper’s freight procurement strategy. To find out more about how Cargobase TMS can drive value for your business, be sure to [contact us](https://www.cargobase.com/contact-us) to find out more. 

large_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering (1).png

medium_Is Your Cargo At Risk - The Hidden Dangers of Double Brokering (1).png

The Hidden Dangers of Double Brokering.png

In the fast-paced world of supply chain management, efficiency and security are paramount in ensuring that the logistics process runs smoothly. But just like any complex system, vulnerabilities exist and threats can ruin it all. One such threat is double brokering.