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What are the challenges faced by small and medium freight forwarders in Dubai?

freight forwarding companies in dubai

With the growing demand for freight forwarders in Dubai, the challenges are also increasing. A lot of people say that freight forwarders earn profits in every situation. However, many of them don’t know the challenges they are facing. Arranging the resources, purchasing the Cargo space, tracking your shipment, etc., are all the activities your freight shipping companies perform behind the scenes. There are a lot of challenges in front of these companies to combat this massive demand in the industry. Here we are going to introduce you to the top challenges faced by logistics companies nowadays:

Top challenges faced by freight forwarders

Higher costs at a global level

One of the primary concerns of freight forwarding companies in Dubai is the higher costs of the services internationally. Due to increasing demand and fluctuations in USD exchange rates, the freight shipping services becomes expensive for both the shipping services and the customers. Companies are left with no choice than either increasing their prices or reducing the quality of services. It is almost impossible for small logistics companies to survive in the long run without bearing losses.

Container capacity availability

Freight forwarders in Dubai experience massive challenges for container capacity availability during their work. Due to the unorganized management and diplomatic policies, freight shipping companies, especially the small ones, cannot survive in the market. Since arranging container capacity becomes difficult for them, they face huge losses. The only way to protect the interest of the logistics companies is to have a well-organized tracking facility for container shipping and updating the real-time status of the containers.

Commoditizing freight forwarding makes it difficult

Nowadays, businesses also indulge in trade activities at an international level. With the advancement of trade technologies, freight forwarders in Dubai are facing a tough time. This is a growing concern for the trade industry. As individuals are turning a lot towards technology rather than streamlined logistics companies, the industry’s future is risky. However, choosing well-organized and experience services for your shipment offers much more than only technology can. It saves you both energy and time.

Unforeseen activities during the transit

The logistics companies face several ups and downs during the voyage, such as environmental challenges and sudden changes in global policies. Apart from all the above challenges, the greatest fear of freight forwarders in Dubai is the unforeseen challenges during transit. This is a significant cause of concern for freight shipping companies establishing at a small scale. 

They face a lot of hindrances during the process, thus affecting their progress. If the company does not have the right expertise and networking, they cannot get the goods on time. Only the top companies like SLR shipping services give their customer’s an option for smooth delivery of goods with minimum interruptions.

Reduced workforce retention due to technology

Technology is making things a lot simpler than before. However, this can also be difficult for businesses to develop their brand. Since most of the small and medium-level freight forwarding companies in Dubai are based on technology, retaining a workforce becomes a challenge. Since a physical staff, unlike technology, can strengthen a company’s growth, it is essential for the logistics companies as well. 

However, this seems impossible for small companies as they have to rely on technology to save themselves from losses and saves time. However, they cannot gain their customer’s trust and retain the staff for longer due to economic reasons.

Overcome these challenges with the perfect freight services provider

Small and medium freight forwarding companies in Dubai face all these challenges mentioned above majorly. However, choosing only a renowned company can solve your logistics needs like SLR shipping LLC. The most trusted multimodal logistics company in UAE provides impeccable services at the most affordable packages. Here you will get the worth of both your money and time by getting timely delivery with fewer interruptions.


Published by SLR Shipping Services LLC

SLR SHIPPING SERVICES is an NVOCC Operator, Multimodal, Logistics and freight forwarding Company in Dubai, UAE with an extensive network around the world. Our Team is committed to providing the best service to our customers and partners around the world.

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