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  • Writer's pictureKwanji

How Kwanji can assist the global shipping industry

The global shipping industry is facing a multitude of challenges, including market stagnation due to Brexit and the Covid-19 pandemic. As a result, the industry is experiencing a shipping crisis, with increasing freight capacity and the merging of shipping line alliances leading to a decrease in container transport prices. Moreover, the industry is under intense pressure to reduce its carbon footprint, causing many freight carriers to struggle to cover their costs.

Another major expense for shipping companies is fuel costs, which can account for up to 60% of a ship's operating expenses. The price of marine diesel and the types of sea freight rates used can significantly impact a ship's profit margin, and shipping companies are often forced to make short-term fleet line-up adjustments to compensate when fuel prices are high. However, due to the financial pressure caused by Covid-19, shipping companies no longer have the funds for these short-term investments.

A global shortage of shipping containers is also driving up shipping costs and delaying the delivery of goods. Container prices surged by more than 700%, and the number of containers produced fell by 40% in the second quarter of 2020. The pandemic and unequal international economic recovery are fuelling the crisis, and desperate shippers are being forced to pay premium rates for shipping containers.

Further adding to the challenges faced by the shipping industry is the difficulty of long-term forecasting of exchange rate fluctuations. As international trade is primarily conducted in US dollars, fluctuations in the value of the dollar can put significant financial strain on shipping companies. For instance, a European shipping company paying duties in USD during a time when the dollar has strengthened against the euro may face inflated expenses and reduced profit margins.

However, by using a currency comparison calculator like Kwanji, shipping companies can easily compare rates from different providers and find the best deals. Kwanji allows businesses to compare exchange rates and fees across a range of providers, making it easy to find the most competitive rates for their specific needs.

In conclusion, shipping companies have a lot to gain from using a currency comparison calculator like Kwanji. By helping companies find the best rates for their currency transfers and providing a range of payment solutions, Kwanji can help shipping companies manage their expenses more effectively and improve their bottom line.

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