Many freight shippers are still experiencing the ripple effects of the Covid-19 pandemic, with 31% of shippers claiming tighter margins today, according to a new report, The Realities of Freight Shipping, by UPS Capital.
The report found that the top freight challenges include increased shipment costs (47%), delays in delivery time (46%) and increased loss, damage, or theft claims (33%).
And this has impacts on shippers including loss of time when resolving issues (55%), loss of sale/revenue (48%), and negative impact on their brand reputation (47%). There was also a financial impact due to sending out a second shipment ( 42%)
As freight shipping is done in large volumes, nearly a third of shippers file two to three claims per month when shipping Less Than Truckload (LTL). This nets out to more than $180,000 per year, as one in four LTL claims, are valued at $5,000 on average.
The most common reasons for filing a freight claim are:
- Concealed shortage 45%
- Damaged Shipment 41%
- Loss 34%
- Theft 32%
The report also shares insights into how freight shipping issues impact specific industries; for example, 65% of the clients of companies shipping healthcare products are the most affected by lost time and money.
The report concludes that freight shippers can mitigate the business impact of rising costs, inflation, and change in demand these instances have through shipping insurance.
