The top 10 most common freight shipping mistakes
Maintaining supply chain operations is key to saving money. Some external conditions are out of the shipper's control, like poor weather or global events. Others are entirely avoidable.
From failing to plan to selecting the wrong mode of transport, each misstep can lead to delays and, eventually, dissatisfied customers. That’s why shippers should have a well-rounded understanding of the top 10 most common freight shipping mistakes.
From failing to plan to selecting the wrong mode of transport, each misstep can lead to delays and, eventually, dissatisfied customers. That’s why shippers should have a well-rounded understanding of the top 10 most common freight shipping mistakes.
1. No advanced planning
As the saying goes, failing to plan is planning to fail. Shippers who do not make arrangements ahead of time could find themselves in difficult situations later.
Without early planning, shippers risk delays due to limited carrier availability, especially during peak seasons. Last-minute bookings can result in higher costs; you may even need to compromise on less reliable carriers.
Other issues, like rushed paperwork and unforeseen delays (e.g., port congestion, route changes, global events), can have a major impact on delivery times.
Without early planning, shippers risk delays due to limited carrier availability, especially during peak seasons. Last-minute bookings can result in higher costs; you may even need to compromise on less reliable carriers.
Other issues, like rushed paperwork and unforeseen delays (e.g., port congestion, route changes, global events), can have a major impact on delivery times.
2. Paperwork errors
Paperwork errors are among the most common pitfalls in freight shipping. Even the smallest mistakes in commercial invoices, commodity codes, or origin documents can lead to customs rejections.
For example, discrepancies in your shipment's declared value might trigger valuation checks, which can then add days (or even weeks) to clearance.
To avoid extra fees and frustrated customers, shippers should use detailed goods descriptions. You should become familiar with HS codes and make sure shipping information is correct across all documents.
Other critical documents include the commercial invoice, packing list, and any necessary licences or certificates, such as those required for goods like food, chemicals, or dual-use items.
For example, discrepancies in your shipment's declared value might trigger valuation checks, which can then add days (or even weeks) to clearance.
To avoid extra fees and frustrated customers, shippers should use detailed goods descriptions. You should become familiar with HS codes and make sure shipping information is correct across all documents.
Other critical documents include the commercial invoice, packing list, and any necessary licences or certificates, such as those required for goods like food, chemicals, or dual-use items.
3. Improper packaging
Packaging plays an important role in customer retention. Inadequately packaged shipments can be damaged by rough handling, vibration during transit, or exposure to environmental factors.
Customers may then wish to return the goods, which leads to further delays and dissatisfaction.
For instance, insufficient cushioning, unstable pallet stacking, and the use of worn-out containers can cause goods to be crushed or even completely lost during shipping.
These issues can result in financial and reputational damage. So, how can shippers avoid this?
Customers may then wish to return the goods, which leads to further delays and dissatisfaction.
For instance, insufficient cushioning, unstable pallet stacking, and the use of worn-out containers can cause goods to be crushed or even completely lost during shipping.
These issues can result in financial and reputational damage. So, how can shippers avoid this?
- Use strong packaging materials: Always opt for high-quality, rigid boxes and avoid reusing compromised packaging. For fragile or high-value items, use additional cushioning (e.g., foam or bubble wrap)
- Proper palletisation: When shipping large items or bulk cargo, secure them on pallets using straps and stretch wrap to prevent shifting. Evenly distribute the weight and avoid stacking too high.
- Account for environmental factors: Depending on the route, weather conditions may be a concern. Use moisture-resistant materials or add desiccants to safeguard against potential water damage.
4. Not purchasing cargo insurance
Failing to purchase cargo insurance can have serious consequences for shippers. Without insurance, any damage, loss, or theft during transit could result in significant financial losses that the shipper must bear alone.
Many shippers mistakenly believe that their carrier’s liability covers the full value of their goods, but this is often not the case. Carriers typically offer limited liability based on weight or specific conditions, which rarely covers the actual value of most shipments.
To avoid the risks associated with ship grounding, fire or even piracy, shippers should always purchase freight insurance.
Factors like the value of the cargo, chosen modes of transport, route, and destination must be considered. It’s also crucial to understand coverage limits and deductibles.
Many shippers mistakenly believe that their carrier’s liability covers the full value of their goods, but this is often not the case. Carriers typically offer limited liability based on weight or specific conditions, which rarely covers the actual value of most shipments.
To avoid the risks associated with ship grounding, fire or even piracy, shippers should always purchase freight insurance.
Factors like the value of the cargo, chosen modes of transport, route, and destination must be considered. It’s also crucial to understand coverage limits and deductibles.
5. Communication breakdowns
Strained relationships between supply chain partners can lead to misunderstandings and, inevitably, delays. From disruptions to lost goods, keeping open lines of communication is essential for success.
Some of these challenges may be out of the shipper's control, as disruptions can be the result of working with new logistics partners where there is a lack of consistent procedures in place.
It can also be caused by miscommunications between shippers and carriers, unclear instructions to warehouse staff, or poor coordination across time zones and languages.
Mitigating these issues requires shippers to prioritise clear, real-time communication. Implementing unified communication tools that all stakeholders can access is a key strategy.
Doing this means that everyone in the logistics chain — from warehouse staff to freight forwarders — has access to the same data and updates.
Some of these challenges may be out of the shipper's control, as disruptions can be the result of working with new logistics partners where there is a lack of consistent procedures in place.
It can also be caused by miscommunications between shippers and carriers, unclear instructions to warehouse staff, or poor coordination across time zones and languages.
Mitigating these issues requires shippers to prioritise clear, real-time communication. Implementing unified communication tools that all stakeholders can access is a key strategy.
Doing this means that everyone in the logistics chain — from warehouse staff to freight forwarders — has access to the same data and updates.
6. Not factoring in additional costs
When shippers don’t budget for unforeseen charges, they’re likely to face financial strain.
These extra costs can arise from sources like fuel surcharges, customs duties, demurrage fees, and storage charges: all of which are not included in freight shipping quotes.
For example, demurrage and detention fees are particularly notorious for catching shippers off guard. Setting aside a sum to cover these costs can prevent it from eating away at your transport budget.
Partnering with logistics providers who offer real-time tracking can also help shippers stay informed about potential surcharges before they spiral out of control.
These extra costs can arise from sources like fuel surcharges, customs duties, demurrage fees, and storage charges: all of which are not included in freight shipping quotes.
For example, demurrage and detention fees are particularly notorious for catching shippers off guard. Setting aside a sum to cover these costs can prevent it from eating away at your transport budget.
Partnering with logistics providers who offer real-time tracking can also help shippers stay informed about potential surcharges before they spiral out of control.
7. Improper declaration of shipment value
Undervaluing goods to save on customs duties or insurance may seem tempting, but it can result in significant fines, delays and even legal action. Customs authorities scrutinise declared values closely!
Discrepancies can trigger investigations, which may result in your goods being held or seized. Shippers can avoid this by making sure the declared value accurately reflects the commercial or replacement cost of the goods.
They should keep in-depth invoices for the cost of goods and, potentially, apply for duty drawback (however, this is subject to qualification).
Discrepancies can trigger investigations, which may result in your goods being held or seized. Shippers can avoid this by making sure the declared value accurately reflects the commercial or replacement cost of the goods.
They should keep in-depth invoices for the cost of goods and, potentially, apply for duty drawback (however, this is subject to qualification).
8. Choosing the wrong mode of transportation
Shippers should pay close attention to the nature of their goods, deadlines, and costs when choosing a mode of transport.
Opting for ocean freight when speed is critical can lead to significant delays. Ocean freight is generally more economical, but it’s slow and often unsuitable for time-sensitive shipments.
On the other hand, air freight is faster but comes at a premium, which makes it impractical for large-volume, low-margin goods. It’s these issues that mean shippers need to decide strategically.
Understanding Incoterms is essential, as they define who is responsible for shipping costs and risks at different stages. You should also consider the best option for the condition of your goods (e.g. if they are perishable or high-risk).
Opting for ocean freight when speed is critical can lead to significant delays. Ocean freight is generally more economical, but it’s slow and often unsuitable for time-sensitive shipments.
On the other hand, air freight is faster but comes at a premium, which makes it impractical for large-volume, low-margin goods. It’s these issues that mean shippers need to decide strategically.
Understanding Incoterms is essential, as they define who is responsible for shipping costs and risks at different stages. You should also consider the best option for the condition of your goods (e.g. if they are perishable or high-risk).
9. Not tracking shipments
If shippers are not paying attention to their freight’s movements, they may be unaware of unforeseen issues such as port congestion, adverse weather, or customs hold-ups.
These can escalate if there is no real-time insight into the shipment’s progress.
To avoid additional costs like demurrage fees and frustrated customers, shippers should always ask for tracking information from shippers immediately as they’re created.
You could also utilise online tracking platforms to receive live updates on the location of your goods.
These can escalate if there is no real-time insight into the shipment’s progress.
To avoid additional costs like demurrage fees and frustrated customers, shippers should always ask for tracking information from shippers immediately as they’re created.
You could also utilise online tracking platforms to receive live updates on the location of your goods.
10. Not comparing freight costs
Businesses that stick with one courier out of convenience often miss out on better rates.
If you’re tired of high shipping expenses and missed opportunities, compare freight couriers with Freight Broker. Our quick comparison service will help you find the most cost-effective option.
By evaluating different pricing models based on package weight, dimensions, and destination, we can help find carriers that best suit your budget.
If you’re tired of high shipping expenses and missed opportunities, compare freight couriers with Freight Broker. Our quick comparison service will help you find the most cost-effective option.
By evaluating different pricing models based on package weight, dimensions, and destination, we can help find carriers that best suit your budget.
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