Are shippers reaching the breaking point in terms of logistics? Freightos, a software-as-a-service logistics provider, released survey results today, showing how much time shippers waste preparing shipments due to a lack of modern technology, which also results in late deliveries and high fees.
According to the results, only 11.7 percent of large importers surveyed said they felt their freight providers are “technologically advanced,” and that about half of all small business contacted said they still relied on spreadsheets to manage their shipments.
As a result, Freightos found that shippers spend a significant amount of time and money on shipping, yet still experienced delays in one out of every ten shipments. More than 42 percent of business owners said they spent more than two hours preparing each individual shipment, while 11.8 percent said it takes them more than five hours managing each shipment. These efforts added up to in excess of 500 hours per year, on average, being spent on getting quotes, booking and tracking shipments.
The survey, conducted in the fourth quarter of 2017 via Google Surveys, was based on a representative sample of more than 500 midsize logistics-related businesses in the United States said, “Ask any freight forwarder or business owner, and they’ll agree – international freight, particularly for small and midsize businesses, is long overdue for an upgrade,” said Dr. Zvi Schreiber, Freightos CEO and founder. The results, he added, highlight the need to move toward electronic systems, under the weight of a heightened demand for products to be delivered quickly and at low to no cost.
For companies that import between four to ten shipments per year, almost half still spend over $10,000 per month on international freight. Among companies that import over 100 times a year, 37 percent said they spend more than two hours managing each individual shipment, while 12 percent spend over ten hours.
Despite the time expense, about 10 percent of small businesses survey said that more than 75 percent of their shipments arrived late. Not a very good report card, overall.
For more information on Freightos’ latest survey on shipper concerns, visit its website.