Here are some of the leading supply chain stories of the month: Talks between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) are underway. Not surprisingly, there are several contentious issues to be addressed. In particular, port automation. Workers are not only concerned about their own jobs, but jobs for future generations as well. Click to Rea...
While lockdowns in China have contributed to a 40% drop in the country’s GDP, there’s also been a drop of 31% in container volumes out of the country this month alone. And the longer lockdowns continue, the worse things will get. Unfortunately, when lockdowns are lifted and all that pent-up demand is released, there’ll be further havoc in the industry. A return to the backlogs of last year will be...
East Coast ports are starting to make the news—thanks to an overflow from the ports of Los Angeles and Long Beach to the west, as carriers deployed smaller ships during the peak season. As of March 18, there were 63 container ships waiting in queue at East and Gulf Coast ports. And unfortunately, things are expected to get worse. Capacity on services from Asia-East is expected to jump 40% from las...
How did our global supply chains get here? The pandemic has shown how interconnected global supply chains are. The historic problems are not unique to any industry or type of business. The situation is very difficult for everyone. These recent images of the cargo ships waiting at anchor outside some of the world’s most important ports tell part of the story. The Big Factor: Consumer Demand But por...
The pandemic didn’t just disrupt consumer behavior, it also sparked a major disruption in manufacturing, shipping, and all aspects of getting new products to market in a cost-effective and timely way. So, how have things changed, and what’s the outlook for the future? The pandemic has brought attention to how interconnected global supply chains are, and how disruptions in one country or with one s...
It’s not your imagination. Problems in the ocean shipping industry are on the rise and shippers’ costs are going up as a result. While some issues are a direct result of the pandemic, which gets blamed for a lot these days, many are not. This makes it an important time for businesses to understand what additional costs they are potentially responsible for as shippers and BCO’s. The reason is many ...
It is a challenging time for all of us as businesses, as well as individuals. When you’re up against strict, yet inconsistent, controls that slow time-sensitive exports and create gaps throughout international supply chains, it can be hard to keep up with soaring global demand for certain items. The problem is compounded by attempts made by major sources of manufacturing, like China, to shorten le...
Incoterms are a set of rules that define the responsibilities of buyers and sellers for the delivery of goods. The rules provide guidance to importers and exporters for global trade practices. Incoterms use abbreviations for shipping terms, for example FOB for “Free on Board”. Incoterms 2020, which has been worked on for several years by the International Chamber of Commerce (ICC), is now ready to...