Jet Freight Adopts Multimodal Solution & Diversions Amidst Red Sea Crisis

Area Sales Manager, Jet Freight
To mitigate the challenges posed by Red Sea Crisis, we have started using options like multimodal solutions, changing ports, and then using direct trucking options from there.

Tasneem Haji - Area Sales Manager, Jet Freight
 

Opportunities and Challenges

The Red Sea crisis has not compromised efficiency but has created opportunities for many logistics service providers in various ways. Nevertheless, it has impacted overall movement. Challenges include delayed ETDs (transit time has almost doubled), changes in vessels, non-availability of space, and rollovers of vessels without intimation from shipping lines.

Cost Implications

The impact on cost is significant, with freight costs being 4x the original amount. Both destination and origin costs have also increased. There are multiple hidden costs as well. The only way to manage these costs is by working on very low margins and taking minimum movement commitments from shippers to secure special discounted rates.

However, business is still happening, and we need to adapt to the changes and challenges. Where there are challenges, there are always solutions and possibilities to explore new opportunities. The Red Sea crisis has been a blessing in disguise for many, and those who know how to make the best of any situation will continue to achieve their goals!

Mitigation Strategies

To mitigate the challenges, we have started using options like multimodal travel choices, changing ports, and then using direct trucking options from there. We also utilize transshipments, combining air and ocean movement in a single shipment. Taking insurance is the most important way to mitigate these concerns. The rest of the situation is a global issue and falls under the force majeure clause, which is beyond anyone's control.

LIFTING & SPECIALIZED TRANSPORT, July - August 2024

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