TAKEAWAYS Shaping the Future of the Global Supply Chain
WAR IN UKRAINE SQUEEZES SHIPPING More than one year after Russia’s initial invasion of Ukraine, global supply chains are feeling the impact. In the months after the invasion, total vessels moving in and out of Ukraine dropped from 109 in January 2022 to just two in June 2022, according to data tracked by project44. Combine the lack of vessel movement with trade sanctions on Russian exports, and you have a recipe for global inflation and commodity price spiking. To mitigate these challenges, many companies are diversifying their supply chains by changing from single to multi-supplier sourcing. In some cases, they are shifting from o shoring to nearshoring.
Look Ma, No Hands As autonomous driving gains some traction, transportation companies are building partnerships to bring self-driving trucks from concept to reality. To that end, Ascend, a truckload carrier that offers middle-mile supply chain solutions, partnered with Volvo Autonomous Solutions (VAS) to test autonomous, long distance linehaul options. As part of the pilot, Ascend will pick up customer loads and transport them to VAS hubs in Dallas and Houston. From there, VAS will move loads to Ascend destination hubs, where drivers will pick them up for delivery to nal destinations. “In the future, the VAS transportation solution could combine the service and transit time bene ts afforded by point-to-point truckload movements with the linehaul advantages of intermodal rail transportation,” says Michael McLary, CEO of Ascend. Potential bene ts of autonomous driving include increased safety, faster delivery schedules that can take advantage of 24/7 operation, and increased fuel optimization due to computer-guided synchronization and vehicle operation optimization, according to Ascend.
135 139 141
134
128
123
The invasion of Ukraine started Feb. 23, 2022
109
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100
116
Total vessels Vessels arriving Vessels departing
50
14
12
6
7
2
0
Jan ‘21 Apr ‘21 Jul ‘21 Oct ‘21 Jan ‘22 Apr ‘22 Jul ‘22 Oct ‘22 Jan ‘23
Total vessels Vessels arriving Vessels departing
79 79
80
80
74
71
68
67
65
71
69
67
60
62
58
The invasion of Ukraine started Feb. 23, 2022
41
41
40 40
37
40
36 34
34
33 35 32
36
30 28
34
35
33
33
30
21
20
20
4
4
4
2
0
Jan ‘21 Apr ‘21 Jul ‘21 Oct ‘21 Jan ‘22 Apr ‘22 Jul ‘22 Oct ‘22 Jan ‘23
The war in Ukraine has led to significant supply chain challenges, exemplified by a sharp drop-o of vessels arriving and leaving Ukraine since the war began. This chart shows numbers from Odesa, the largest port in Ukraine, which mirror the country’s overall numbers. ( Source: project44 )
22 Inbound Logistics • March 2023
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