5 Tips for Achieving Success in the Shipping Industry

The need for good shipping businesses has been on an ever-increasing rise since the advent of the pandemic where the demand for goods and commodities increased dramatically. Now, as companies struggle to find reliable shipping companies and suppliers, it is the perfect time for new companies to start up their own shipping enterprise and make a name in the industry. 

There are several carriers and forwarders out there that earn big amounts of profits, like freight forwarder amazon fba which generates a massive revenue solely from the trust and respect of their clients. 

If you too wish to have your own company like this that can be successful in the shipping industry and attract major clients from all across the world, then you have come to the right place. In this article, we will give you several tips that you can follow to achieve success in the shipping industry with relative ease. 

Prepare a sturdy business plan. 

One of the easiest ways to go into debt and bankruptcy with your business is by not having a business plan while starting out as a company. Planning out your finances, your future prospects, and the next plans for your company that can get its profits is an integral aspect of starting out a company. 

The only way to be a successful shipping company like Shipo is by drafting a sturdy, original and intuitive business plan even before your company starts out so that you can show potential investors and sponsors that you do have an idea of raking in profits, provided that they help you with some capital right now. 

Your business should talk facts and figures and be inclusive of evidence that your idea or plan can be a successful hit for your shipping industry. It should have a basic idea of a target audience, how you are going to cater to that audience, what is your value and business target, and also what makes you competitively relevant against other popular companies in the market.  

Your ability to sell this proposition to investors and banks will decide your company’s future and dictate if you will get enough funding for your company or not. 

Figure in the costs for your business beforehand. 

Let’s get some things straight – a shipping business is not by any means an inexpensive business where you can invest in anything you want and expect it to be enough to run your business. 

No, the very fundamental start-up cost of creating a shipping business is enormous. Unless and until you have figured out some way of obtaining a large amount of capital to fund your business, you should stay away from your idea of starting up a successful shipping business. 

shipping costs

The most massive cost you will incur will be that of the cargo ship which can go up to $10 million. This is not even counting the tens of thousands you will have to spend on staff, equipment, technicians, office, warehouse insurance, license, and marketing. Putting all of the costs together can give you a pretty good idea of how expensive a shipping business really is and if it is the right choice for you. 

Decide the most ideal location for your company. 

One of the most integral aspects a shipping business needs to look out for is the location of their company and the place where they operate. The location of your business impacts your ability to be successful quite a lot. 

After all, transport costs a hefty ton and if a business has to spend more resources to get their goods to your business as compared to other businesses where they can get it done much cheaper, then it is an obvious choice that they will choose the latter. Opening a shipping business in an already busy location is an extremely risky move that rarely ever pays off. 

On the other hand, getting a nice location for your business that is close to manufacturers that manufacture popular commodities and goods and not too close to other shipping businesses can be considered to be the perfect location for a new shipping company. It is also crucial that you choose a location that is relatively more lenient with their trade and shipping laws. 

Recruit the right staff for yourself. 

If you think hiring professionals for your company is the only staff you will need, you are gravely mistaken. When you purchase a cargo ship, you need to ensure that you hire shipping professionals as well that know how to use the ship perfectly.

right shipping staff

This includes everyone from ship captains to maneuver the ship, technicians that keep checking the maintenance of the ship to even the most basic employees that keep an account of the cargo and handle orders with perfection. 

Hiring experienced and well-trained staff to do this is often quite difficult and you may even require the need of an external agency to help you get all the necessary staff. 

Cater to a specific commodity.

When you first start out, it won’t be economically possible for you to cater to every manufacturer’s shipping demands. As it stands, each industry has its own unique requirements that you are required to fulfill when you get their shipping contract. 

containers shipment

Since you will have limited resources and experience, getting more contracts than you can handle, and that too of varying nature, can be extremely taxing for your staff and limit your shipping capabilities severely. 

That is why we strictly recommend that you find one single manufacturer or one single commodity sold by different manufacturers and then extensively transport that cargo everywhere. 

The more underwhelming a commodity you ship, the less attention you will get from other shipping companies. 

Conclusion. 

There are several ways through which you can access immense success in the shipping industry. All you need to do is to ensure that you know what you are doing and follow articles like these on a regular basis. We hope this article was helpful for you and if it was, please consider following our website for regular updates as it will help us out immensely.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan