Underutilised Ocean Containers: Strategies for Better Efficiency

Underutilised ocean containers can significantly affect your company’s financial performance. The main reasons to focus on improving overall container usage are to decrease expenses, improve the existing shipping processes, and increase the general effectiveness of shipping operations. Due to the ever-increasing shipping costs and competitive environments, it has become crucial for companies to use the available space effectively. Each spare centimetre in the container can lead to reduced sales and less potential profit.

In this blog post, you will discover powerful strategies for transforming underutilised ocean containers into profit. Learn how to enhance your shipping efficiency and achieve your eCommerce goals! This article aims to help firms reduce costs and boost profitability by addressing the problems of underutilised ocean containers.

Container Utilisation: Definition

Container utilisation is the measure of how packed a shipping container is. It is a percentage of the particular container’s total capacity. It is one of the most crucial metrics for a web-based store. It influences the shipping of products and the overall feasibility of a business.

Knowing the level of container turnovers helps businesses highlight the weaknesses in their supply chain patterns and adjust their shipping models accordingly. It also helps increase the Return on Investment (ROI) of each shipment. By focusing on container utilisation, shipping companies can cut costs and improve their services. Adequate packaging increases efficiency and improves profitability, enhancing business growth in today’s highly competitive online selling market.

Underutilisation: How Much Room Is Lost in Shipping Containers?

The levels of underutilisation depend on factors such as the type of cargo, specific routes, and the general effectiveness of the shipping system. A high percentage of container capacity is unused because of incomplete loads, poor packing, and poor forecasting. For online sellers, this wasted capacity can impact their profit margins. 

A large percentage of the available capacity is usually wasted. This inefficiency can be due to many factors, including part shipments, wrong packing procedures, and nonexistence or inaccurate demand estimation. By increasing the utilisation capacity, one can save millions of dollars annually.

Identified Constraints That Contribute to Underutilised Ocean Containers

1. Incomplete Shipments: Many organisations do not use the container’s maximum capacity.

2. Inefficient Packing Techniques: The International Maritime Organisation established that improving packing techniques could reduce the underutilisation of ocean containers by up to fifteen per cent.

3. Vague Predictions: If the demand projections are incorrect or unclear, you cannot match the size of shipments with actual requirements. 

Are Underutilised Containers Just a Business Cost?

Underutilised ocean containers represent a significant business expense, resulting in lost opportunities to enhance sales and profits. Transporting empty or partially full containers can be costly since you are denied the full freight rate efficiency and end up paying more for the service. Every square metre left vacant is a lost revenue opportunity; significantly affecting immediate transportation expenses and long-run profitability. This inefficiency may lead to rising costs. 

By attributing the underutilisation of the space as a variable cost instead of a fixed cost, you can develop strategies to turn the space into additional revenue. 

How to Make the Most of Your Cargo Space?

You must act in advance to maintain a high level of container usage. Read the following strategies to manage the cargo space optimally. Applying these measures can eliminate storage wastage and improve overall organisational performance. 

1. Accurate Forecasting: Incorporate sophisticated forecasting models to balance requirements and shipping planning. Understanding customers’ needs is critical to optimising the shipment process and avoiding underutilisation of containers. This proactive approach solves the issue of wasted storage and ensures timely delivery and customer satisfaction. You can also use historical data to improve the predictive accuracy of your logistics. 
2. Consolidation: Combining multiple small shipments into one large shipment is a smart practice. It helps to accommodate many shipments into a single container. When combining numerous orders from several clients, businesses can boost their productivity. It increases storage capacity and helps to reduce delivery costs. You can gain economies of scale with lower freight charges and better delivery time. This benefits you and your customers. 
3. Efficient Packing: Appropriate packing methods allow for better space management and help avoid large empty spaces. Train your staff to pack effectively; well-packed containers do not require extra shipping boxes. Packing materials are meant to fit the empty spaces and safeguard items. It helps increase efficiency and safety in transit. Efficient and appropriate packaging preserves cargo from damage in transit and avoids potential losses and claims associated with damaged products. Establishing a culture of careful packing is essential for building a reputation as a reliable and quality-driven business.
4. Flexible Container Options: Carefully assessed shipment requirements help you choose the best container type and optimise space and costs. This flexibility provides tailored shipping solutions and enhances the available space for your products. It also enhances business processes, allowing for a more agile response to market changes and seasonal fluctuations. This approach helps in the optimum utilisation of resources and improves customer relations.
5. Technology-Driven Solutions: Real-time, contactless monitoring of container usage is a new trend in logistics, driven by technology-enhanced platforms. Advanced software can help you track container utilisation, leading to better decision-making and increased efficiency. This approach not only improves future shipment planning but also helps identify inefficiencies. Technology offers an opportunity to cut costs and enhance efficiency in service delivery.

CargoX: Streamlining Shipping for Maximum Efficiency

CargoX assists organisations that undergo shipment and delivery decision-making to avoid underutilisation of containers. We provide robust technology solutions and profound experience to help you improve your logistics processes and boost profitability.

Contact us today to find out how CargoX can benefit your organisation and increase the operational use of containers. CargoX is a trusted logistics partner that aids you in streamlining your shipping operations and achieving your eCommerce goals. Join us for better shipping solutions!

Conclusion

Reducing the number of underutilised ocean containers is an essential challenge among sea transportation companies. It can significantly contribute to cost reduction and company profitability enhancement. By using every centimetre of containers’ internal space and adopting additional features of a new-age packing solution, you can gain a competitive advantage in the modern marketplace. With the best operational techniques and advanced technology solutions, you can improve the overall performance of business supply chains and meet customer needs and satisfaction.