Supply Chain

Skipped port calls add even more frustration and delays

With global supply chains continuing to struggle against pandemic-related congestion and disruption and traditional peak seasons being extended, or seemingly never ending, we are anticipating a pre-Chinese New Year rush in December/ January and would recommend planning supply chains well ahead for 2022. ‘Forewarned is forearmed’ as the saying goes… Despite inventory levels sitting at their lowest ever recorded levels

Ports invest for future

DP World has opened an 11.5 acre container park near Southampton, to increase storage capacity during the peak pre-Christmas season and work has begun on a fourth berth at London Gateway container port, to increase supply chain resilience and create more capacity for the world’s largest vessels. The new park at Southampton will be able

Air freight welcomes return of passenger flights

Passenger aircraft pre-Covid supplied at least 50% of all global airfreight capacity in the ‘belly-hold” space under the passenger deck and the return of air travel will ease congestion and rate pressure on the time-sensitive mode. Passenger airlines will begin to convert and reduce the number of aircraft operated in ‘preighter’ configurations this autumn, as more of their fleets return to flying scheduled passenger services, particularly

Contract negotiations signal carrier intent

Taking advantage of current market dynamics shipping lines are trying to move the biggest shippers – retailers and manufacturers – onto two-year terms for 2022, with some container carriers trying to negotiate even longer periods, of three or even four years. Contract rate spreads from base ports in China and other parts of Asia are

Air freight rates continue to rise as capacity falters

Frustrated shippers, trying to avoid further container shipping delays, by switching modes, has driven air freight and charter rates to climb by up to ten times in a single week. Further imbalance between supply and demand is emerging, with the airlines conversion of passenger aircraft into temporary cargo planes failing to satisfy demand. Many airlines

Why some supply chains fail in the current environment

Brexit and the COVID pandemic has put global supply chains, and the people who work in them, into the public consciousness for probably the first time. As disruptions impact supplies of consumer goods, leaving empty shelves and fears grow for Christmas stock availability, people are asking ‘what’s gone wrong’. Supply chains almost never operate perfectly.

China factories closed by power cuts

The Chinese government has implemented strict controls on the use of electricity that will seriously affect production in factories across ten critical provinces and could see US$120 billion of trade flows delayed. With severe disruption throughout the supply chain from China, this adds a new headache for manufacturers of products that are being exported globally

Supply chain weaknesses exposed by Covid

For decades, offshoring and global sourcing have offered lower labour and operating costs, wider product ranges and opportunities to reach new markets. The pandemic has exposed their supply chain vulnerabilities. Customers are expecting faster and faster deliveries, but global supply chains take weeks and even months to land goods from overseas and lead times have been

Liner haulage is effectively broken

Multiple issues are negatively impacting container haulage operations from ports across the UK, with inevitable financial and service impacts, which are likely to impact every importer of full containers. In the worst cases, if no action is taken, importers may face very significant additional charges, with no guarantee of delivery. Full load importers are facing