5 Challenges Encountered by Refrigerated Transport, Houston, TX

Everyone is catching up as times are changing fast. The advent of new technologies is almost on a regular basis. Industries and businesses are catching up with them. The freight forwarding industry is also doing the same. Houston Refrigeration Logistics is also worried about the current trends when it comes to freight management service in Houston.

Here are some of the challenges that big and small freight forwarders are facing:

1. Forwarding Cost

The exchange rates of US dollars fluctuate daily which is the common currency being used for international trading. It also affects the freight rates as they might change. It creates a domino effect and also affects the price of goods, especially if you have clients that require a produce storage in Houston.

Bunker Fluctuations

Bunker fuel is a huge cost for crude tanker companies. Bunker fuel is highly polluting and very viscous. Only a few and large engines can handle this type of oil as it needs to be heated before using it. This is only used in ships as they have the capacity to heat it before using it.

The freight forwarder gets the brunt of the impact when the oil prices in the international market fluctuate. High fuel prices impact the transportation cost directly. Additionally, there are fuel surcharges which added to the freight rates.

Seasons

Seasons have a significant role when it comes to the transport of goods. Especially if you are a client looking for a produce storage and a refrigerated one. The cost of the freight also rises as goods become expensive to ship due to demand and supply. Bad weather conditions are also a risk factor that causes damage to the ship and delay in shipment.

Fees and Service Charges

Different countries have different expenses that need to be paid both at the embarking point and the destination. Some ships prefer to remain at sea as they are unable to pay the service charges.

2. Economic Challenges

Aside from the financial challenges that most freight management service companies in Houston face daily, there are also economic challenges such as staff shortage and retention, government regulations and environmental issues.

3. Transport Infrastructure Issues

Not all the roads and networks used by the transport service are in optimal condition as some of them have transport infrastructure issues. Though constant communication is being done by most forwarders, there is still the need to keep the roads in good shape. If all goes well, delivery can be on time and freight forwarders can avoid issues like breaking down of the vehicle.

4. Ocean Volatility

The majority of the goods are transported through ocean shipping. Increased amounts of elements as well as weather conditions directly impact the cost makes it highly unstable. The rates and contracts are constantly changing which makes forwarders difficult to provide reliable quotes to their clients.

5. Commoditization

Transportation is viewed as a commodity by a lot of shippers. They are very concerned about the prices and do not give importance to the service. This is a challenge for forwarders to differentiate between themselves and other providers.

Houston Refrigeration Logistics makes it a point to be flexible when it comes to these challenges. They are constantly on a lookout to take advantage of the new technologies and adapting to the change. Get in touch with them at +1 (713) 928-9940 or email them at info@hrlcorp.com.