"QFM" (Quality Freight Management) refers to practices and strategies in the shipping and logistics sector that aim to optimize quality control, efficiency, and reliability in freight management. The shipping industry, known for its complex, often opaque practices, doesn't always publicize the reality of QFM. Here are some "secrets" that shippers, carriers, and freight forwarders may prefer to keep under wraps when it comes to Shipping. However, as a reliable and trusted Freight Forwarding Company, QFM Shipping never hides anything from its clients to provide Quality Freight Management.
1- Hidden Costs and Surcharges
- Fuel Surcharges: While fuel prices fluctuate, shipping companies often pass on these costs to customers in the form of fuel surcharges that sometimes remain high even when fuel prices drop.
- Peak Season Fees: During peak seasons (e.g., holidays), shippers can be hit with extra charges for space or last-minute bookings. These fees often lack transparency and can be unpredictable.
- Paperwork and Administration Fees: Many clients aren't told that they’ll face administrative fees for customs clearance, handling documentation, and other "administrative" processes, which can add up quickly.
2- Low Priority for Small Shipments
- Large shippers often get priority in booking slots, while small businesses or less-than-container-load (LCL) shipments are given lower priority. As a result, small shipments face longer transit times, frequent delays, and sometimes unexpected last-minute rescheduling.
3- Under-Reporting Delays
- Shipping companies may not always disclose the full extent of port delays, congestion, or weather impacts to avoid reputational damage. Consequently, the delivery timelines provided can sometimes be unrealistic, particularly during peak times when congestion is high.
4- Outdated Tracking Technology
- While the industry promotes advancements in tracking, some carriers rely on outdated or fragmented tracking systems, making it challenging for customers to obtain real-time, accurate shipment updates.
5- Quality Assurance Lapses
- In an attempt to keep costs low, some companies may cut corners in quality checks, particularly for goods transported over long distances or through high-traffic regions. This can lead to higher rates of damage, especially for sensitive goods.
6- Environmental and Ethical Oversights
- Although the industry is under pressure to adopt greener practices, many companies still rely on heavy fuel oils and vessels that lack eco-friendly technology, leading to a significant carbon footprint. Additionally, transparency around labor practices can be lacking, particularly with subcontractors.
7- Data Sharing and Privacy Concerns
- Many companies collect extensive shipping data, but how they manage, share, and protect this data isn’t always disclosed. There’s also a risk of data sharing without customer consent, which could impact confidentiality.
8- Insurance Fine Print
- While insurance coverage is often offered, the fine print can exclude certain incidents, leaving shippers with partial or no compensation in the event of damage. For instance, natural disasters, acts of war, or internal thefts may not be covered.
9- Artificial Capacity Scarcity
- During times of high demand, some shippers may intentionally reduce available capacity to raise prices. This scarcity tactic can lead to inflated freight rates, especially when the demand for goods transportation is high.
By being aware of these industry “secrets,” shippers can navigate QFM more strategically, negotiate better terms, and understand the fine print of shipping contracts, making for a more transparent and efficient shipping experience.
