5 Surprising Effects of a Pandemic on FCL Consignments You Didn't Know

Roughly since March this year, cargo companies have seen a massive increase in FCL consignments. FCL transportation? These mostly include products that need to be transported urgently to meet the health and medical needs during the pandemic. Another reason behind the increased popularity of FCL consignments is the higher air freight rates and the changed consumer behavior brought on by the pandemic and lockdown. 

Further, companies have transformed their sourcing, adapted new shipment methods, and created new terms and policies to adapt the new consignment orders in the middle of the covid outbreak. Blockchain technology and paperless transactions have become the new normal. Here, we will discuss some of the most surprising ways in which FCL consignments are affected by the pandemic! 

5 Surprising Effects of a Pandemic on FCL Consignments You Didn't Know

Impact of COVID-19 on FCL Consignments

The impact of lockdown is not just limited to some short-term activity in the supply chain. Instead, it has affected all the major sectors including Automotive, Retail, Aerospace, Travel, and Tourism, etc. At the same point, the demands of the healthcare and food industries are increasing significantly. And we can expect these situations and the shipping trends are going to continue in the upcoming few months. 

Moreover, soaring airfreight prices have left many essential commodities on the grounds, but the good thing is, ocean freight services have come out as cost-effective and viable alternatives with a faster and safer reach for moving consignments to destinations all across the world. For the last year, shippers have turned to Full-container-load (FCL) services as a way to transport their consignments with full care and safety. Allowing bulky shipments to ride on these filled containers ensures faster delivery and also helps in saving a good amount of money. 

Also, avoiding air freight might be the driving factor for shippers to opt for FCL, but there is another supply chain scenario – bulk orders. 

As the eCommerce industry continues to thrive because of lockdown, shippers are aiming at importing more and more shipments. Further, B2B goods exchange is the area that is leveraging the FCL consignments to their fullest. 

5 Effects of Pandemic on FCL Consignments

It's been a year and a half since the outbreak of coronavirus. The whole world has been struggling for this time and the good thing is, people have learned to survive in the crisis. While it's true that businesses have suffered a lot during this time, the eCommerce industry has seen a huge surge, mainly because of lockdowns. Businesses that are operating online are the first ones who have not just recovered the losses but have grown dramatically during this period. Here is how these factors have affected the FCL shipments.

1. Growing Demand For FCL Containers:

Due to the bulk orders, the FCL containers are increasing rapidly. This is also the reason behind congested ports and higher shipping rates. Get to know more here about FCL containers. 

2. Cross-border Control Policies & Increased Freight Inspections:

Governments have been working round the clock to respond to the covid crisis. The export restrictions for energy cargo such as medical and pharmaceutical supplies have been lifted temporarily. However, in the longer term, the FCL cost may spike due to tighter cross-border safety protocols regarding the transmission of the virus. 

3. Rise of Ecommerce & Advent of New Technology Facilitating FCL Tracking:

FCL logistics? FCL container tracking? There is no secret that logistics has been in the middle of a technological revolution. Businesses that have advanced digital capabilities which allow them to track and monitor their FCL consignments are enjoying the advantage. Today, tracking FCL shipments has become much easier and more secure using advanced technologies like IoT, data analytics, cloud computing, drones, robotics, etc.

4. FCL Are Better Than LCL:

LCL vs FCL? When it comes to selecting between FCL and LCL containers, most people prefer using LCL knowing that it is more cost-effective – which it is. However, this notion has changed during the pandemic. The reason is, clubbing shipments together not only exposes them to damage but also is not recommended due to safety protocols. Plus, the delay in delivery is another factor that LCL shippers have to deal with.

But there is no such thing as FCL shipping. First, you can safely transport your bulk orders in a fully sanitized safe container, which will only stop at the destination port. This point-to-point transport ensures a faster, safer, and damage-free delivery.

5. Waived Off Customs and Duties:

Another great news for FCL shipments is that many countries have waived off custom duties on the export-import of emergency goods. This can be a major benefit for the businesses as well as transporters. Although these policies are valid for the short-term, they benefit in a smooth and hassle-free exchange of goods across borders.

There is no doubt that digitization and e-commerce are changing the dynamics of freight markets, demanding transparency, ease of use, and advanced solutions for cross-border shipping. In addition, these factors have also helped businesses to grow during the global crisis.

If you’re looking for freight shipping solutions for your business, why not check out ITP Packaging!