Most people think delayed freight isn’t all that bad, sure it’ll arrive a few hours late maybe, but it’ll still get there so what’s the problem, right?

Well, a delayed shipment means a lot more than a slight inconvenience, it can mean extensive ripple effects across operations, finances and customers trust in your business. These costs can quickly and significantly escalate from a seemingly small delay, to increased costs to lost productivity, but they can be mitigated through thorough planning, communication, reliable freight partners and real-time tracking.

Let’s take a look at just how delayed freight can really effect your business. Some you’d expect and are more obvious than others, but the rest you might overlook.

Direct Costs of Delayed Freight 💵

Direct costs are the immediate hit that impacts you financially as a result of a delayed shipment.

Late delivery penalties ⏰

A late delivery penalty is a contractual clause that states delivery of freight by a specified date and time. If this is broken for one reason or another, then the supplier might encounter a fee, which is either a percentage of the freight value or a fixed rate per unit of time. Although it’s important to remember that these fees could be eliminated if the delay is caused by adverse weather, natural disasters, or anything outside of the suppliers control.

Higher charges for last minute re-routing 🛣

If freight needs to be rerouted, this may incur an additional premium charge because a sudden reroute can disrupt an entire pre-planned logistics network. The additional charge comes from wasted labor, fuel and other resources, and it can also increase handling and storage fees. Another way this can add to extra charges is if you decide to change a regular shipping service to an expedited one to meet a deadline, expedited services carry a higher price tag so this would be chargeable to you.

Storage fees 📦

Delayed freight often requires extended storage which again is going to be an extra cost if the goods remain at a port, warehouse or terminal past the grace period. The fees are in place to compensate for the use of space, and also to encourage timely cargo collection to beat congestion and make way for more freight.

Operational Costs 💵

Now onto the operational costs, because the added expenses don’t stop with the above.

Idle workers 👷‍♀️

What’s more frustrating then having workers on site, ready to get to it, but, due to a delayed shipment, there is no work for them to do just yet, meaning due to no fault of their own, you’re paying out of pocket for workers to well….not work. The kicker, you’ll end up paying more in wages for them to stay late and work overtime to handle the work once it finally arrives.

Production line downtime 🙅‍♂️

Production line downtime can cause huge financial losses from lost revenue due to a lack of production leading to cancelled orders, increased costs from having to expedite products when the line is back up and running, overtime pay or through having to source alternative supplies from a more expensive source. Not being able to fulfil already placed orders is another big complication of production line downtime and ends with dissatisfied customers, who will potentially look elsewhere in future, losing you more revenue.

Reschedule contractors and equipment 📅

At project sites, it’s incredibly important for the day to run like clockwork. For example, if a construction site needs a bulldozer delivered the delay of this shipment would hold up an entire construction crew not to mention if the equipment is being rented, someone is paying a daily rate, wasting not only people’s time but also money in wages and equipment hire. Rescheduling contractors to come back out to sites once the delivery has been made can be a headache and schedules might not align for some time, leading to even further delays.

Financial Impact Beyond Freight Bill 🧾

These are impacts that we see that don’t directly impact your bottom line from a delayed shipment, but do in the long game.

Lost sales opportunities 👎

If you have to list a product as unavailable due to freight delays and customers cannot complete a purchase of the product, this is a loss of a sales opportunity which means lost revenue. Not only lost revenue but potentially loss of customers, customers will seek products else where and if they have a good experience with another supplier, they may become loyal to them. Lastly on this topic, regular unavailable stock can negatively effect a brands reputation, they can make a brand feel unreliable. Again, losing you customers.

Cashflow strain 💵

With product stuck in transit or in storage, billing for the goods will most likely be delayed. Creating a gap between shipping and receiving payment. This can severely effect and hurt your businesses cashflow, because although payment will not yet be received, operational costs continue to rack up.

Reputational & Relationship Costs  🙅‍♀️

It’s not all about the money….

Broken trust 😔

Broken trust is especially frustrating because delays are usually out of the shippers control. It’s even more prevalent in B2B relationships because the impact is doubled: if one business can’t deliver on time, they let down not just their direct customer, but also that customer’s end-customers. A single delay can ripple through the whole chain. If the delays start to frequent, then you can bet that the business buying from you will look elsewhere for their own sake but also from pressures of their customers. This doesn’t mean that B2C trust isn’t as important, it absolutely is, once a trust is lost with any customer they will likely shop elsewhere and you could lose contracts and preferred vendor status.

As you can see delayed freight can massively effect your business, in more ways than one. So, let’s now take a look at what can cause a delayed shipment and how you can work together with your freight partner to avoid them as best as you can.

Causes of Delayed Freight ⏰

There are numerous reasons why freight could be delayed, some outside of your freight partners control, others could be due to issues in their workplace. Here’s some of the more common reasons:

• Severe weather conditions
• Natural disaster
• Global emergency
• Labor disruptions, i.e. strikes
• Port congestion
• Carrier capacity limitations
• Equipment malfunctions
• Incorrect or missing documentation
• Regulatory issues
• Traffic jams
• Road conditions
• Infrastructure
• Communication error
• Inventory and fulfilment issues
• Address errors
• Poor labelling
• Workforce illness (short staffed)
• Poor planning

How Can We Avoid Delayed Freight? ⏰

It’s not all bad news, the good news is that although delayed freight cannot be entirely eliminated, the risk can be reduced greatly with extensive planning and by partnering with the right freight partner. Here’s some actionable tips to beat the dreaded delays.

Partner with a freight provider who can pull off urgent shipping 🚚

Although your freight might not need urgent or emergency shipping in the first place, it’s a good idea to partner with a freight professional that specializes in and has experience in critical shipments. When you partner with them from the get go, in the case of a delay where you need a partner to quickly re-route, secure permits, manage tricky routes, and work around some sticky situations. When every hour counts to get your freight back on track and make up some of the time lost, then these are the kinds of partners that are going to really pull through because when you use the right freight partner you can unlock faster problem solving.

Work with a partner that uses real time tracking and communicates frequently 🖲

There is possibly no better way to keep your freight on track than to utilize real time tracking. Visibility is key and pair that with regular, proactive updates and you will never be left wondering where your freight is again. With this proactive approach, you can detect disruptions earlier and can act quickly to rectify or avoid any issues as they or before they arise.

Build in sufficient buffer time ⌚️

If possible, it’s a great idea to build in a little cushion to your delivery times. This extra time can absorb unexpected delays and help to keep your businesses deliveries within their allotted delivery window and stop your schedule from being derailed.

Make contingency plans 📑

Prepare alternative routes with your freight partner, and have a plan B ready to pivot to should anything go wrong to stop you having to scramble at the last minute.

Key questions to ask a freight partner ❓

To sum it up, before committing your freight to a partner, look beyond the price of any quote and ask these questions to reveal how the provider will perform with the above points when things don’t go to plan:

• Do they offer 24/7 support? Freight doesn’t stop moving, and in times of crisis, when things get delayed you need a reliable partner that can support you around the clock so issues can be dealt with immediately.
• Do they have contingency networks? Sometimes brokers and carriers outsource work to another vetted carrier to get the job done when they’re in a crunch, or need extra support due to unexpected events. So, understanding how strong of a network they have can be advantageous to being more resilient.
• How do they handle communication? Communication is key. Having a partner that calls you with updates instead of you having to chase them for information is crucial. The time you save from chasing ETAs, you can spend updating customers instead.
• What visibility tools do they use and provide as access to customers? Modern carriers and freight partners utilize different technologies and give their customers access to real time visibility portals.

Avoid Carriers That Show These Red Flags 🚩

• Overpromising – A freight partner that guarantees you on time delivery every time sounds AMAZING in theory, but what shippers really want to know is their on time success rates. Even the best freight partners face disruptions unfortunately, so look for realistic providers who can give you an idea of how they handle tricky situations.
• Poor communication – If you’re struggling to get responses from emails, queries or quotes before you’ve even signed a contract, then this could be a look into what’s to come if you work with this specific partner. As we highlighted before, communication is super important when moving freight, so this would be a huge red flag.
• Lack of transparency – If your shipping partner does not communicate contingency plans, how they handle delays or cannot give you real life examples of hard shipments they’ve worked through then this is a major warning sign.
• Only offer one size fits all services – A one size fits all service, actually doesn’t always fit specific industry shipping needs. A partner that cannot tailor solutions, and only does routine shipping might struggle to last minute make accommodations in the case of disruption.

Transactional Partner vs Strategic Freight Partner 🤝

The difference between these two kinds of shipping providers will make all the difference to your experience. If you want to truly give your business a chance of minimizing delays and the additional costs that come with them, then choosing a strategic partner gives you the best chances, here’s the difference between the two:

Transactional partner 👤

A transactional partner purely focuses on getting the freight from point A to B, and getting paid. They tend to offer the most competitive rates, however they are not focused on your success and see you as another number in their system, meaning if things go wrong, you’ll struggle for help.

Strategic partner 🤝

A strategic partner is the polar opposite of transactional. They work as an extension of your team, and work with you to provide the best service possible, build contingency plans, forecast demand, and create tailored solutions to fit your needs.

Conclusion 💭

There is no escaping freight delays, and if you ship regularly at one point or another the likelihood is you will experience delays at some point. It’s important to understand that delayed freight is not just an inconvenience, but actually a chain reaction that ripples down through costs, operations, customers experience and trust. With the right planning, technology and freight partner you can minimize your chances of falling victim to regular freight delays. Following this guide, can give you helpful actionable tips to keep your shipments on track because nobody is immune to disruptions. If you want to partner with a reliable, caring and customer first freight partner then look no further. Use the link below to get in touch, or contact us on: Phone: 888-SHIP-911 we can’t wait to hear from you!

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