The transportation industry, like many other industries, is having a difficult year right now. As a result of panic buying at the beginning of the pandemic, trucking volumes surged by 30%, then dropped, and have only recently begun to rise again. Rail, maritime, and last-mile delivery have all experienced a 20% or greater decrease. This is an odd period in which operations are already being affected by rising labor costs and dropping freight rates, customer desire for faster shipment while placing fewer orders, and overall greater carrier profits.
What is freight management?
In the transportation industry, freight management is the process of efficiently and strategically transporting freight across a network from its point of origin to its desired destination by utilizing a variety of modes of transportation as well as intermediaries and technologies. Logistics and supply chain expertise, physical assets such as trucks, distribution centers and warehouses, and technology are all used to move freight efficiently and cost-effectively across the supply chain process.
Businesses have long placed a high value on the capacity to transport freight on time to the correct destination, in the correct quantity, without damage, and at the lowest possible cost. Due to variables such as shrinking shipper stocks, just-in-time manufacturing, increased warehousing and labor costs, smaller delivery windows, and customer fulfilment expectations driven by e-commerce, this skill is more critical than ever in today’s competitive climate.
Types of Transportation
Freight managers coordinate the transportation of cargo by air, rail, road, and water. Combinations of these modes, which are referred to as intermodal transportation, are also used to give the most efficient logistics and delivery options available. Trucks hauling commercial freight convey approximately 70% of all freight transported in the United States.
Selecting & Managing Vendors and Carriers
Having a private carriage to travel in. Some businesses determine that purchasing their own fleet of vehicles and managing their own drivers is the most cost-effective and reliable method of transporting their goods. This is especially important for businesses with significant product volumes or for brands with less typical final destinations. However, huge corporations may own their own aircraft or ships, therefore this model is mostly concerned with road transportation.
Using third-party transportation services. A large number of firms rely on third-party logistics (3PLs) to complete their transportation operations. These can be common carriers or contract carriers, depending on the situation. FedEx, DHL, and UPS are examples of common carriers that provide transportation services to the general population.
Contact carriers, on the other hand, exclusively operate with specific shippers who have signed a contract with them. This approach, also known as Dedicated Contract Carriage (DCC), is becoming increasingly popular since it allows you to pay a set charge per day and per truck while still being able to send products at any time or on a consistent schedule.
Top Logistics to Consider in Malaysia
1. Altus Malaysia
Altus Malaysia is one of the country’s major supply chain organizations, operating in three-wide and diversified sectors which is marine services, oilfield services, and logistics services. Altus Malaysia service is headquartered in Penang, Malaysia.
With their many years of experience in this sector, they’re are able to provide a comprehensive range of dependable and trustworthy services for the company’s needs. A high-quality integrated network of services should be expected, which will allow reducing the number of contractors on projects while preserving the quality of services.
2. DGL Freight SDN BHD
DGL Freight develops solutions that provide customers with peace of mind and cost savings while also meeting their needs. As a full-service freight forwarder firm for small and medium-sized enterprises (SMEs), we offer the best in the ocean, air, transhipment, project, transport, warehouse, and cross-border logistics.
In order to give a complete business solution by assisting customers in succeeding and the global economy thriving, DGL adapted the logistical capabilities (sea, air, charter, bonded, project cargo, dangerous goods, time-critical, warehousing, transport, and redesign service). With more than 25 years of expertise, they provide world-class logistics services and global solutions with devotion, pride, and passion.
3. FM Logistics
FM Global Logistics, one of Malaysia’s premier one-stop logistics solution providers, is a leader in helping organisations improve the efficiency of their logistics operations. Because they are one of the greatest one-stop logistic solutions providers in Malaysia, they are able to provide us with dependable and effective freight services. FM Global has a global network of over 107 agents in 127 countries throughout the world. FM Global Logistics now provides complete multi-modal freight services to customers all over the world.
4. Mine Logistics
Mr. Dereck Ng and Mr. Hong Yeow founded Minelog Sdn. Bhd. (Minelog) in 2009, with the goal of making a difference and providing entire logistical solutions to the mining industry. Minelog began as a small sea freight company with only five people but has since grown to become one of Malaysia’s most respected comprehensive logistics solution providers, with more than 100 experienced personnel offering everything from air and sea freight to customs brokerage and warehousing.
5. Care Freight and Logistics
Care Freight and Logistics Sdn. Bhd., a forwarding firm based in Shah Alam, Malaysia, was established in 2017 and is based in Kota Kemuning, the capital of the country. Their principal, Ms Sharon Gan, has extensive experience as the owner and operator of a logistics firm in Malaysia for more than 20 years, and she is currently managing a young and energetic team of committed experts. She recognizes the importance of several industries in Malaysia and around the world, as well as their company growth.