In the ever-evolving landscape of global shipping, it’s crucial to adapt and optimize strategies continually. Here are three best practices to enhance your global shipping approach in 2024, addressing the unique challenges and opportunities of the current market.

1. Understand the Diversity of Trade Lanes and Markets Not all shipping lanes and markets are experiencing uniform trends. While many global trade lanes have seen a decrease in demand for capacity, this is not universal. For instance, the U.S. export market recently experienced a surge in demand. Similarly, certain routes to and from Oceania have not witnessed the same drop in demand as other regions like Asia. This variation underscores the need for a diversified global supply chain strategy that balances contractual and spot pricing, adapting to the specific conditions of each region. Despite more available capacity in many trade lanes, maintaining a lead time of 4–6 weeks for ocean shipping and prompt notification for air freight remains vital.
2. Prioritize Cost Reduction Reducing supply chain costs remains a top priority. Simple yet effective strategies, such as cargo consolidation, can offer significant savings and enhanced cargo security. Additionally, leveraging new technology tools, such as duty refund tools for U.S. imports, can cut down on manual labor and uncover hidden savings. Incorporating Incoterms® effectively, managing purchase orders efficiently, and using business intelligence reporting from transportation providers are other tactics that, while requiring more time to implement, can yield substantial long-term benefits.
3. Focus on Economic Indicators for Better Forecasting With the recent tumultuous years, the focus for many has been on maintaining operational continuity. Now, it’s time to shift attention to forecasting based on economic indicators. Managing inventory in line with these indicators and positioning it closer to the end user is crucial in today’s complex logistics environment. Utilizing the right technology and data can help identify economic impacts and optimize inventory to sales ratios.

These strategies are starting points for adapting to the unique demands of your business’s supply chain. Each company’s logistics needs are distinct, and therefore, bespoke strategies are essential. Collaborating with your supply chain partner to identify the most suitable approaches for your specific business goals is the best way forward.

As we move into 2024, staying agile and informed in the global shipping arena is more important than ever. These strategies aim to help businesses navigate the complexities of the current market and seize opportunities for growth and efficiency.