While the pandemic isn’t really over, in a lot of aspects, it is. Life is returning to a slightly skewed version of our pre-pandemic norms. So what’s up with the supply chain? Why are we still dealing with such widespread disruptions? First off, little disruptions and ripples have always been relatively easy to course-correct. But the hits have just kept coming over the last few years, with no tim...
The industry is used to hearing news about port congestion and ships loitering as they wait for berths—at least at the West Coast ports of Los Angeles and Long Beach. But the tide has shifted. As carriers try to escape the backlog in the west by moving to the east, the problem has followed along like an albatross. The Ports of Houston and New York now have as many containerships waiting for berths...
Sluggish supply chains could get even slower going forward. The green shipping initiative has had the industry concerned about increased costs, but now decreased speed could be a factor as well. This is because of the lack of insight shipping companies have into what type of fuel they’ll need to use. To offset that lack of knowledge, they’ll continue to use older vessels. The problem is that those...
Shippers are happy about the impending launch of three new initiatives. These are in the wake of an investigation by the Federal Maritime Commission (FMC) into ocean carriers. The three new initiatives are the International Ocean Shipping Supply Chain Program, the reintroduction of the Rapid Response Team, and the designation of an FMC Compliance Officer. Click to Read: FMC launches new initiative...
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...