Shipping Routes

What Are Shipping Routes?

Shipping routes are established paths used by cargo vessels to transport goods across the globe efficiently. These routes connect major ports and trade hubs, often following natural waterways, such as oceans and seas, while considering economic and geopolitical factors. They are essential to the supply chain, enabling the movement of raw materials and finished products between manufacturers, suppliers, and consumers. 

Who Determines the Shipping Route?

Stakeholders determine different elements of the shipping route. These decisions are often based on the position of the stakeholder within the ecosystem, their specific needs in regard to the route, and external factors such as weather or political tension. 

• Shipping companies: plan routes for ships based on efficiency, cost, and port availability
• Freight forwarders: plan routes for their cargo to meet delivery times and budget, and may move cargo to another ship with a better route to meet delivery deadlines
• Regulatory agencies: set guidelines for navigation, such as avoiding restricted areas
• Captains and navigators: make real-time routing decisions for safety, weather, or emergencies
• Port authorities: influence routes through port scheduling and congestion delays

How Can Maritime Trade Routes Impact the Supply Chain?

Shipping routes directly influence efficiency, costs, and delivery reliability, all of which have an impact on the supply chain. Well-optimized routes ensure on-time delivery, helping businesses meet customer KPIs. Efficient routes also minimize transit time, which reduces inventory holding costs and accelerates the flow of goods.

By following established shipping lanes and leveraging key trade hubs, companies can benefit from economies of scale, lowering transportation costs. Conversely, poor route planning or disruptions, such as weather or geopolitical events, can lead to delays, increased expenses, and potential loss of customer trust. Strategic route management is essential for a resilient supply chain.

Why Are Freight Shipping Routes Different Than Passenger Ship Routes? 

How Do Organizations Optimize Shipping Routes?

Organizations leverage a number of different technologies to enhance shipping route optimization.

Transportation Management Systems (TMS)

These platforms assist in planning, executing, and tracking cargo shipments by sea, managing routes, schedules, and carrier contracts to optimize operations. They are enhanced using AI solutions like Windward Maritime AI™.

AI and Big Data Analysis

AI-driven insights analyze vast datasets to identify optimal shipping routes, predict potential disruptions, and enhance decision-making. Windward’s AI-powered solutions provide real-time, predictive intelligence, offering a comprehensive view of the maritime ecosystem to support informed decisions.

Is It Better to Ship Cargo on a Single Ship with Multiple Stops or on Multiple Ships with Transshipments?

The better option depends on the priority, budget, and destination of the shipment. A single ship may be ideal for predictable routes and cost savings, while multiple ships offer faster and more flexible solutions for complex supply chains. Here are the pros and cons of each option. 

Single Ship with Many Stops

Pros:

• Simplified logistics: no need for multiple handling or coordination between different ships
• Lower risk of cargo damage: less transferring reduces the likelihood of mishandling
• Cost-effective for short distances: particularly for routes with fewer stops and shorter transit times

Cons:

• Longer transit times: stops at multiple ports can increase overall delivery time
• Limited flexibility: dependent on the ship’s fixed schedule, which may not align with specific needs
• Port congestion risks: delays at one port can disrupt the entire route

Multiple Ships with Transshipments

Pros:

• Faster transit times: allows for optimized routes with fewer stops per leg
• More flexibility: easier to adapt to changing schedules and priorities
• Access to remote destinations: transhipments connect smaller ports to larger global networks

Cons:

• Higher risk of cargo damage or loss: increased handling during transfers
• Complex logistics: requires careful planning and coordination between vessels
• Potential for additional costs: fees for transhipments and intermediate port handling can add up