TAKEAWAYS
Gaining Vision in Ocean Freight’s Murky Depths
What you don’t know can hurt you. Half of ocean freight stakeholders responding to a recent report released by FourKites say they have zero visibility into their ocean freight. More than 20% still rely on manual track-and-trace processes to locate their ocean freight in the supply chain. Once that cargo hits land, the numbers get better. Up to 73% report having some level of visibility into their over-the-road shipping. It will take some work to get those numbers close. Fortunately, ocean freight executives are ready to invest time and money. FourKites’ report, The Great Reset: Ocean Shipping in a Post- Pandemic World , also nds that
AIR CARGO GAINS ALTITUDE Air cargo levels are showing signs of rebounding to pre-pandemic levels. North American carriers reported a 5.1% decrease in demand in 2022 when compared with 2021, but capacity increased 4.2%, according to the International Air Transport Association. Comparing these figures with 2019 shows demand at 13.7% and capacity at 8.2% above pre-pandemic levels. Here are the top 10 global airports–based on total cargo– leveraging the increased demand, according to Airports Council International: 1. Hong Kong International Airport 2. Memphis International Airport 3. Shanghai Pudong International Airport 4. Ted Stevens Anchorage International Airport 5. Incheon International Airport 6. Louisville International Airport 7. Taiwan Taoyuan International Airport 8. Los Angeles International Airport 9. Narita International Airport 10. Hamad International Airport
73% plan to invest in supply chain visibility technologies, with 46% saying they are going to invest more in 2023 than they did in 2022. Ocean freight executives also expect to face labor challenges, high shipping costs, and impacts to customer service in 2023.
KEEPING THE LAST MILE IN SIGHT When customers order an item, they want it delivered now. Retailers realize this, but they also have to keep costs in mind. A study FarEye conducted with Researchscape International finds that retailers with more than $100 million in sales seek to improve the top key performance indicators of on-time delivery (74%) and cost per delivery (62%). But as supply chain complexities increase, on-time deliveries become more challenging. To help solve this issue, many retailers outsource their delivery networks, but this comes with its own set of problems. For example, the initial report findings show that 84% of retailers that have outsourced their delivery networks now want more control over those networks. Visibility is the biggest reason why; 33% of retailers say accessing reliable information is a challenge. To address these shortcomings, 77% of logistics providers say they expect to expand their budgets for last-mile delivery technology, and 82% say they will likely change or buy a new last-mile delivery solution in the next one to two years. To enable more e§cient, cutting-edge deliveries and lower costs, logistics providers are also evaluating electric vehicles (80%), autonomous vehicles (44%), and drones (38%).
March 2023 • Inbound Logistics 23
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