TAKEAWAYS
5 Trends to Watch As We Sail Into Peak Season As shippers approach what is historically retail peak season, understanding the evolving ocean market will be critical to maintaining a resilient supply chain for the long term. Here are ve key trends to watch as the ocean market evolves. 1. Plan for the risk of delays. As carriers plan for lower demand across trade lanes, they are implementing a capacity-absorbing measure called slow steaming, which lowers fuel costs and lengthens transit times by approximately 3-6 days. Carriers may also use blank sailings or parked vessels to address lowering demand. Delays from blank sailings can add weeks to transit times and create a chain reaction of supply chain issues if shippers don’t plan properly. 2. Prepare to shift ports if needed. Ports are not immune from congestion and labor disruptions. Planning to quickly shift freight if needed will maximize ef ciencies and lessen the risk of delays. 3. Keep LCL top of mind. Look to less-than-container load (LCL) to support supply chain strategies as it provides exibility should you need to quickly pivot. As demand and schedule reliability remain up in the air, LCL is a cost-effective way to keep goods moving. 4. Adjust shipping to supply chain changes. Nearshoring or friend-shoring has led to many shippers working with completely new routes and customs requirements. As suppliers and manufacturing locations change, shipping strategies need to change too. Strategies that worked in one market may not work in the other. Avoiding the risks of one location may introduce new risks from another, so consider the effectiveness of different shipping options when shifting operations. 5. Use various modes to optimize spend. Selecting ports based on distribution location or switching between intermodal rail and truck based on the lowest rate at the time requires advanced planning and visibility, but can bring signi cant cost savings.
AIRCRAFT SHORTAGE: THE PLANE TRUTH Expected aircraft engine shortages will have a substantial impact on the global supply chain’s cargo capacity and more. Fewer available aircrafts, combined with growing demand for air cargo services, could lead to a surge in freight rates, significantly aecting businesses reliant on air for time-sensitive or high-value goods. Aircraft shortages may also force businesses to explore alternative shipping routes and transportation modes, which could result in longer transit times and potential logistical challenges. When dealing with an air capacity shortage, eective inventory management becomes crucial to minimize the damage of potential delays in transportation. Close collaboration with suppliers and customers, as well as implementing advanced real-time data, can help optimize inventory levels and minimize the impact of this event. Diversifying supplier bases and exploring multiple transport modes can also help reduce reliance on a single mode of transport, therefore reducing the impacts when one mode experiences unexpected events like a materials shortage. Implementing enhanced visibility across the supply chain through real-time data and dynamic lead times becomes imperative during a shortage. Real-time shipment tracking and monitoring can help businesses proactively identify potential disruptions and take necessary actions. To mitigate disruptions from an aircraft engine shortage, focus on preventative measures like putting in place high-quality supply chain visibility, collaborative partnerships, and agile inventory management to keep the supply chain moving. – Bart De Muynck, Chief Industry Ocer, project44
– Matthew Burgess, VP of Global Ocean Services, C.H. Robinson
July 2023 • Inbound Logistics 29
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