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LAMAR’S PORT MANAGEMENT PROGRAM ENHANCES CAREERS AND BUILDS KNOWLEDGE

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Archives, Global Trade Daily, U.S. Ports

LAMAR’S PORT MANAGEMENT PROGRAM ENHANCES CAREERS AND BUILDS KNOWLEDGE

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Lamar University’s new Center for Port Management prepares today’s port and terminal management professionals for tomorrow’s industry challenges and opportunities. The center’s flagship offering is the fully online Master of Science degree in Port and Terminal Management. The 12-course program blends theory and practice through course content and delivery, taught in equal measure by industry experts sourced globally, and faculty from Lamar’s Business College and Industrial Engineering Department.

“Throughout my 40-year career, the port industry has sought an advanced degree in port management that would recognize the exceptional nature of this critical profession, as well as advancing its practice,” says Erik Stromberg, the center’s first executive director. “As an industry veteran, my focus is on the application of knowledge to the practice of port management.

“Historically, port managers prepared for their significant responsibilities through on-the-job training and continuing education as offered by trade organizations, such as AAPA,” says Stromberg in reference to the American Association of Port Authorities, which he ran for 10 years. “The required set of skills and knowledge could take years to develop, but even then, it would typically address the manager’s functional focus and not the broad spectrum of port authority roles and responsibilities.

“Our port master’s degree program spans the many interdisciplinary skill sets a senior port leader needs to understand and apply. Management skills training in leadership, team building and decision-making are included in the curriculum. The curriculum also addresses one of the most important port management responsibilities, which is to balance the public and private sector roles a port authority must play.”

Stromberg continues, “Importantly, one of the very important if less obvious roles our port industry veterans play in delivering course content is to convey the normative value of port management. Port authorities operate as a public enterprise, requiring management acumen and business-like efficiency in the delivery of public goods—jobs, economic development and waterborne commerce. There is a tangible aspect of port management that prides itself on generating public benefits, as well as achieving commercial success that engenders a strident dedication to the craft.”

The center’s program also provides continuing education to Texas and West Gulf ports and terminal managers, primarily through the SE Texas Waterways Advisory Council’s Education, Research and Workforce Development Committee. Two very successful programs—“Women in Transportation Management—Ports and Terminals” and the annual “Hurricane Planning” workshop/webinar—recently concluded.

The third aspect of the center’s activities lies in sponsoring industry-relevant research. Most of the supported projects have successfully facilitated safer and more efficient waterborne transportation and waterway utilization. These projects, along with information about the center’s education and training programs, can be found at lamar.edu/portmanagement.

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Archives, Global Trade Daily, Ocean Ports

HONG KONG DRIVES TO CAPTURE THE COLD-CHAIN MARKET

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In Hong Kong, where many U.S. businesses send shipments to and receive goods from, a new drive to maximize cold chain opportunities is being realized and embraced.

By leveraging Hong Kong’s unique location to support fruit businesses tapping into the growing mainland Chinese market, fresh produce worth more than US$3 billion is arriving at Hong Kong Seaport Alliance (HKSPA) terminals annually.

Through the deployment of more than 7,800 reefer points, twice the capacity of other terminals in southern China, HKSPA expedites every container of fruit through its facilities to enable the freshest delivery to market. 

American companies shipping fresh fruit produce to the region should bear Hong Kong’s port facilities in mind, especially given Chinese demand for fruit imports is predicted to grow by 55 percent come 2025.

Further adding to Hong Kong’s appeal, HKSPA claims consignees can collect shipments immediately after discharge and be on their way within 15 minutes. Simple, convenient, and fast customs procedures mean Shenzhen is an hour away, while one of the world’s largest fruit-consuming epicenters, Guangzhou’s Jiangnan Wholesale Fruit and Vegetable Market, is just four hours by road.

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

EXPANSION ALONE MAY NOT BE ENOUGH AS BUSY PORTS EYE SMARTER GROWTH

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A sharp increase in container cargo in the second half of 2020 and into the early months of this year has proven to be a pleasant surprise for several U.S. ports. But even prior to the impacts of COVID-19 on container cargo, many ports were already dealing with substantial growth and operational success. “Deeper, wider, bigger” has been the theme as ports and terminals spent and continue to spend billions of dollars to capture greater market share.

So, is “deeper, wider, bigger” the secret to growing the container business?

“There really is no secret,” says Joe Harris, spokesman for the Port of Virginia, who adds that his home facility “offers a modern, technologically advanced port run by a team of experienced professionals. We focus on customer service, efficiency and providing a predictable experience to our customers–the ocean carriers–and the cargo owners choosing to move their goods over our terminals. Those things, combined with a long-term plan of strategic infrastructure investments that is shared with the port’s users, are vital to our future.” 

From 2014 through 2024, the Port of Virginia will have invested nearly $1.5 billion in modernization. This includes expanding annual TEU (twenty-foot equivalent units) throughput capacity by 1 million units and deepening and widening commercial channels to make Virginia the deepest port on the U.S. East Coast. 

“The strategy is to leverage these investments to grow volume, expand market share, build our competitiveness and continue to be a catalyst for economic investment and job creation in Virginia for decades to come,” Harris said. 

Supporting the strategy is a team of professionals across the world, including the U.S., representing the port. These professionals are continually engaged in driving business to Virginia, according to Harris. “They are supported by a business analytics team that is helping to identify emerging markets, new industries, expansion among beneficial cargo owners and ocean carriers,” he adds. 

Port Tampa Bay has also witnessed a strong uptick in container cargo.

“Our container business increased by 33 percent last fiscal year and is up another 43 percent in the most recent quarter,” says Wade Elliott, the port’s vice president of Business Development. “The primary driver is the continued rapid growth of the Florida market, which was the second-fastest-growing state by population last year.”

The Tampa Bay/Orlando I-4 Corridor region, home to Florida’s largest concentration of distribution centers with close to 400-million square feet of space, “was already one of the hottest industrial real estate markets in the U.S. pre-COVID-19,” Elliott notes.

“New container service connections from Asia, and more recently Mexico, have helped facilitate this increased business,” he says, “and the port’s close proximity to these distribution centers allows importers and exporters to make multiple round-trip deliveries per day, resulting in significant savings in trucking and supply chain costs.”

To keep pace with the growth, there is a need to develop more infrastructure.

“Port Tampa Bay recently completed 25 acres of additional paved storage, bringing the total container terminal footprint to 67 acres with plans to add another 30 acres,” Elliott said. “Work has also begun on a third berth which will bring the total to over 4,500 linear feet, allowing three large ships to be worked at the same time. Construction is also about to start on a new container gate complex and the bid process has begun to acquire two, additional gantry cranes,” Elliott concluded.

The Jacksonville Port Authority (JAXPORT) saw container volumes rebound up by 5 percent year-to-date in FY21 (Fiscal Year) which began in October. Nearly 353,400 TEUs moved through JAXPORT during the first quarter of FY21, making it one of the port’s busiest first quarters on record for container volumes.

“Location and efficiency are both central to JAXPORT’s success throughout our various trade lanes and business lines,” says Robert Peek, JAXPORT’s general manager of Business Development. “JAXPORT is located in the heart of the southeast U.S. and offers fast access to 70 million consumers within a day’s drive.”

Historically, Puerto Rico has been JAXPORT’s largest trading partner, accounting for about half of all JAXPORT’s containerized volumes, but Jacksonville has been actively pursuing new business.

“Today, container shipping lines service additional Caribbean islands through JAXPORT, as well as Central and South America,” Peek added. “JAXPORT also offers robust container vessel service with China and countries throughout Asia.” 

With the benefits of congestion-free terminals and infrastructure enhancements, anchored by a harbor deepening project, JAXPORT will “continue to work to grow our offerings in the trans-Atlantic and African trade lanes as well,” Peek said.

With Jacksonville also in the “deeper, wider, bigger” mode, its infrastructure projects will support its growth plans.

“The federal project to deepen the Jacksonville shipping channel to 47 feet from its current depth of 40 feet will be completed through our Blount Island Marine Terminal in 2022,” Peek said. “Harbor deepening is JAXPORT’s single biggest growth initiative and positions us as a port of choice for the increasingly larger container ships calling the U.S. East Coast.”

More than $200 million in terminal enhancements are also underway at the SSA Jacksonville Container Terminal at Blount Island. “These enhancements include phased yard improvements to allow the facility to accommodate more containers, berth enhancements to enable the terminal to simultaneously accommodate two post-Panamax vessels and the addition of three additional state-of-the-art, eco-friendly container cranes, bringing the facility’s total to six,” Peek added.

California’s Port of Long Beach is a leading gateway on America’s most important trade route, the trans-Pacific, and it offers the fastest and shortest route between Asia and the United States.

“We offer more connections to interstate highways and national rail lines, along with access to 2 billion square feet of warehouse space in the region,” says port Executive Director Mario Cordero.

In 2020, Long Beach handled more than 8.1 million TEUs, the best year in its history “and to start off 2021, we’ve had our best January and February on record,” Cordero adds.

The port sees growth opportunities in markets such as Southeast Asia as well as Latin America, and eventually Long Beach would also like to see a resurgence in U.S. exports, Cordero says.

Capital improvement projects are crucial to maintaining successful and growing operations. Cordero says the port is completing “the world’s most advanced container terminal at Middle Harbor,” known as Long Beach Container Terminal.

Slated for completion later this year, this automated terminal will have 14 ship-to-shore, dual-lift cranes. Six of the cranes will be big enough to handle a 22,000 TEU ship. There will be 70 stacking cranes and 72 automated guided vehicles (AGV) at full build-out, adding an annual capacity of 3.3 million TEUs.

“In 2021, planned capital expenditures of $379 million account for 58 percent of our spending,” Cordero says. “Over the next 10 years, the port will invest $1.7 billion in infrastructure and $1 billion of that is for the development of the port’s on-dock rail capacity.”

Not surprisingly, the growth of the container business has spurred innovation in other aspects of the industry. 

California-based Blume Global, for example, has co-developed with Fenix Marine Services (FMS), a marine terminal operator at the Port of Los Angeles, a technology platform to add efficiencies to container movement. 

“This service doesn’t simply help the terminal operate more efficiently, the entire port ecosystem (ocean carrier, rail carriers, motor carriers, labor interests, logistics service providers, beneficial cargo owners) gains an advantage,” says Lincoln Pei, account manager, Blume Global. “When containers flow quickly through port complexes and marine terminals, vessel berth and rail car capacity are optimized, gate transactions are timelier, and dray carrier wait times are reduced, among other improvements,” he says.

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Archives, Global Logistics, Global Trade Daily, Ocean Carriers

KEELVAR SAYS ITS OCEAN AND AIR FREIGHT AI WILL REVOLUTIONIZE PROCUREMENT

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Bots are everywhere these days. They play poker against you and help you order a pizza. They assist in getting you hotel reservations and chat with you when you contact customer service to find out why your pizza had extra onions instead of extra cheese. And now, thanks to Cork, Ireland-based Keelvar, they can all but take over a company’s ocean and air freight procurement.

There’s no question air cargo really needs help right now, given the volatility in the market. Capacity is down, way down—nearly 40 percent from China in mid-February, 20 percent over the last year as a whole. Ocean capacity has also dropped. Meanwhile, demand has been rising, due to the pandemic. Optimizing sourcing at a time when rates, transit times and carriers are changing so rapidly is challenging for even the largest firms. 

For Keelvar, there are few better times to unleash their bots.

“We’ve been helping shippers to find ways to bring the product to market faster,” says Keelvar CEO Alan Holland. “It’s automated—that’s what’s different about what we’re doing. A bot can go to work as soon as someone wants to move something, say, from Montevideo to New York. It’s always available. That’s the biggest competitive advantage.”

The bots that Keelvar and many other companies make these days are simply software that automates specialized tasks. Keelvar calls the artificial intelligence (AI) bots it makes Sourcing Automation, which it defined in a June 2018 white paper as “a new category of software that leverages intelligent systems to automate complex human reasoning that exceeds expert standards.” 

Holland likens his bots to those that entered the world of online poker a few years ago. The earliest poker bots could play the game well, but couldn’t best professional players. But as the software evolved, the AI learned how to play better. Today, even the best poker champions in the world can’t beat the latest generation of poker bots. Holland’s goal, which he articulated in the white paper, is creating software that performs sourcing work for companies better than the experts in the field.

“The sobering fact is that AI is defeating the best human experts in most tasks where the boundaries and constraints on decision making are well-defined closed systems,” states the Keelvar white paper. “It would be a mistake to assume that AI won’t be competitive in the task of strategic sourcing and then ultimately overtake humans in this role. Once the boundaries of decision making are communicated, then the game-theoretic reasoning for optimizing the mechanism for sourcing goods and services becomes just another complex but the tractable calculation for Artificial Intelligence.”

In other words, Keelvar says their bots can automate all bidder communications in sourcing: opening, feedback generation, data cleansing, closing, termination-criteria monitoring, and activation. They basically run a company’s sourcing events, though logistics officials are always free to override the bot’s preferred course of action. Sourcing events can be complex and require the labor of many employees, some with years or decades in the procurement field, but Keelvar’s sourcing automation can basically handle it all.

“This process is tedious to execute manually and the more bidders there are, the more onerous the tasks above become and also the more likely that short-cuts are taken, and mistakes are made,” states Keelvar’s white paper. “Furthermore, the slow pace in manual events leads to curtailment of the rounds of bidding and inevitable lost savings opportunities due to the frictional effect of manual operations.”

What’s more, Keelvar’s ocean freight bots can even account for the pollution emissions of cargo vessels when conducting sourcing events (a feature that will eventually be available on the company’s air cargo bots). “Humans can’t get to that level of detail to do emission-sustainable options,” Holland said.

While the ocean freight bot has been around a year or so, the air freight bot only became available in January. Keelvar says the bot can automate 90 percent of a company’s tactical sourcing processes.

“It’s a natural evolution from our first bot, the ocean freight bot,” Holland said. “There’s a finite set of airport codes, but different logic around recommendations in air freight. Bid sheets are different, and cargo tends to be weight-based, rather than container-based, which is how ocean freight works.”

For Felix Plapperer, a venture capital investor and CEO of Paua Ventures, Keelvar’s sourcing bots will “dominate” the procurement market. Not merely because the bots are inherently more efficient than manual labor, but also because they learn the sourcing job better every time they operate. 

“When a tender/auction is conducted by a bot, the number of actions is between eight and 20, depending on the complexity,” Plapperer wrote in a June 4, 2020, post on Medium on why he invested in Keelvar. “If each bot action costs less than $1, then the cost per event is roughly one or two orders of magnitude (yes, that is 10x to 100x times) cheaper than for an event operated by manual labor. Now, these cost savings only capture the value driven by process automation. As ‘mini-tenders’ are not run by sourcing experts, little to no optimization takes place (in fact, often personal relationships drive the outcome). Sourcing bots, in contrast, analytically optimize each and every event based on business priorities. Thus, they create additional value in reduced spend—every time they are at work.”

Of course, the bots aren’t replacements for a company’s procurement teams, but were designed to work alongside them. Major companies such as BMW, Novartis, Siemens and Coca Cola are already using Keelvar’s bots for their procurement.

Another of Keelvar’s recent customers, McKesson Corp., is an Irving, Texas-based healthcare and pharmaceutical company founded back in 1883. According to Keelvar’s marketing materials, McKesson was on track to save 6 percent of its global freight budget prior to the pandemic, and had already saved 6 percent the year prior, through the use of sourcing optimization products from Keelvar.

“Excel is nice, but it’s not where we need to be,” said Tad Strong, McKesson’s Vice President of Global Operations during a March 2021 webinar hosted by Procurement Leaders. “And over the next few years, we’ve some pretty big plans on making that shift into a more automated, more robust system.” 

So, what does the future hold? Holland wouldn’t comment on whether his company is developing a bot to handle ground freight logistics (though that would be a logical step for the company), but he did say the next generation of artificial intelligence bots are just on the horizon.

“This is all level four automation, but level five automation systems in the future will have more autonomy,” said Holland. “We want the bot to autonomously decide on new carriers. There’s a lot of strategy on negotiating rates. You learn by experience which strategies are best. In level five, the bot learns new strategies.”

Holland said the first of examples of his level five AI bots in ocean freight should appear in the fourth quarter of this year. 

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

NEW REPORT: DEMURRAGE & DETENTION CHARGES MORE THAN DOUBLE IN A YEAR

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Demurrage and detention charges imposed on shippers by container lines have soared at unprecedented rates globally over the last year, according to the Demurrage & Detention Benchmark 2021 report published today by Container xChange, the world’s leading online platform for the leasing and trading of shipping containers,

However, the hikes are hugely inconsistent, with large differences apparent both by port and by carrier.

Across the world’s 20 largest container ports, the report found that average Demurrage and Detention (D&D) fees levied by container lines on customers two weeks after a box was discharged from the vessel more than doubled across ports and shipping lines between March 2020 and March 2021, climbing 104% or the equivalent of $666 per container across all container types.

None of the world’s top 20 ports by throughput saw a decrease in D&D fees over the period.

On average, D&D charges (see definitions below) in March this year were $720 per box across standard container types two weeks after the box discharge from the vessel.

“Demurrage and detention prices have always been an area of conflict between shippers and carriers and that tension has reached a new level this year as costs have spiraled,” said co-founder of Container xChange Christian Roeloffs.

“The key to minimizing D&D is to create transparency around the fees. With shippers informed about the costs associated with D&D, they’ll be able to make business decisions and enter negotiations informed of the accurate costs and per diems. We hope this report gives all parties increased transparency.”

Methodology

To compile the report Container xChange collected more than 20,000 data points from publicly available sources. These were used to compare D&D rates imposed on customers by the world’s ten largest shipping lines across the world’s top-20 container ports. The data was then compared against data collected by Container xChange in March 2020.

The ten leading Chinese ports experienced a +126% increase in average D&D charges from March 2020 to March 2021. Qingdao saw the biggest rise in D&D rates, up 194% year-on-year, followed by Dalian where shippers suffered an average increase of +187%.

However, D&D charges in China remain far lower than in many other leading ports with seven of the top 10 cheapest ports located in the country. By contrast, average D&D fees two weeks after discharge at the Port of Long Beach in March were $2638, the most expensive in the world. In second place was neighboring Los Angeles at $2593.

“In the US, the Federal Maritime Commission is now looking into the practices of the container shipping industry and searching for ways to ensure that container users, many of whom feel they have been charged unfairly by carriers for D&D, can be refunded,” said Dr. Johannes Schlingmeier, CEO & Founder of the container leasing and trading platform. “Certainly, D&D rates have been accelerating, adding to the burden on shippers and industry on top of record container rates and global container shortages.”

Rotterdam had an average D&D rate in March of $756, Singapore was $615, and Antwerp was $709.

At the bottom of the spectrum was Busan (South Korea) with average D&D charges of only $132 in March this year. The next cheapest after the South Korean port were the Chinese ports of Dalian and Tianjin both with averages of $201.

Variations by carrier within ports

D&D charges do not just vary by port, they also vary by shipping line within each port. At the port of Los Angeles, which has been central to the chaos evident on the trans-Pacific container trade over the past year, average D&D charges increased by +142,7% from March 2020 to March 2021. CMA CGM’s D&D rates increased the most, up 167% over the period. Maersk was a close second, with its customers seeing a 161% increase in D&D charges.

By contrast, COSCO, unlike the other carriers in the Port of Los Angeles, lowered its average D&D fees by 15% over the period from $1417 in March last year to 2020 to $1213 in March 2021.

In Hamburg, meanwhile, the cheapest carrier in March this year was CMA CGM, which charged $258 in D&D after two weeks. Yang Ming was the most expensive line with rates of $1612.

Globally, the cheapest combination of carrier and port was COSCO and the Port of Busan in South Korea. The most expensive combination was CMA CGM at the ports of Long Beach and Los Angeles.

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Archives, Global Logistics, Global Trade Daily, Ocean Carriers, Ocean Ports

The Future of Ship Systems to be Smarter with Ship Bridge Simulators

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The maritime industry is not new to the simulation technique and has, in reality, been using this technique in automation as well as numerous other applications. The rising implementation of advanced technologies & automation in the maritime sector has surged the need for ship bridge simulators. The Asia-pacific region has rising passenger traffic and massive import & export businesses; as a result, the region is likely to be in major need of marine systems equipped with ship bridge simulators.

The maritime sector is transiting toward autonomy by enabling assistance in navigation and decision support systems using simulations. At some point in time, if two autonomous vessels crafted by different producers come across each other, how will these vessels communicate? How intricate will the navigation be? Will the ships discuss intricate navigational maneuvers? Will the two autonomous systems be able to communicate in a proper way? Simulation or formulating mathematical models to impersonator trustworthy real-world effects can offer numerous solutions to these questions.

The marine industry is not new to the simulation technique and has, in reality, been using this technique in automation as well as numerous other applications. For example, simulation is used for coaching squads for new vessels before these vessels delivered for crane management and towing in seaports to check loopholes in ship systems and other purposes. For years, simulators are extensively used in training and certification mainly in the Maritime Education and Training (MET). They are used in numerous areas of the marine sector including cargo handling, crane operations, system control, offshore operation training on ships, bridge operations, and towing & anchor handling. Such a wide range of applications of simulators has propelled their demand in recent years. A report by Research Dive reveals that the global ship bridge simulator market growth is expected to skyrocket and the market is anticipated to garner significant revenue in the upcoming years.

Alexander Ozersky, the Deputy Director-Intellectual Systems at Wärtsilä Voyage Solutions, believes that simulation is a technique that permits to do mistakes without triggering any severe outcomes in the real world. A vessel can need nearly ten years to develop or redesign its system. However, by making use of simulation techniques one is able to do it more quickly, more safely, and at a reasonable price. This is why a simulation-based method was used to attest to the functionality of COLREGS (Convention on the International Regulations for Preventing Collisions at Sea) in Wärtsilä Navi-Harbour vessel traffic management system with ClassNK, a global leader in ship classification.

Panorama of the Ship Bridge Simulator Market:

There is a tremendous need for skilled ship operators or watch captains on a vessel for directing navigation, map plotting, weather monitoring, fire management, observation, search, and operation rehearsals. Also, there has been significant development in war systems and technologies; for example, electronic as well as network-centric wars use ship bridge simulators for testing systems. In addition, the rising implementation of advanced technologies & automation in the marine sector has surged the need for ship bridge simulators. Moreover, strict rules issued by maritime lawmakers for proficient coaching of electronic war workforces have propelled the demand for ship bridge simulators in recent years. All these factors portray that the global ship bridge simulator market is accelerating at a rapid pace and is expected to reach significant heights in the coming years.

In the past few years, ship makers have observed that the virtual reality simulation is considerably more proficient than conventional marine simulator training. In virtual simulation devices, a helmet is used that shows a video and is assimilated with sound effects and simulation sensor systems. With these sensors, the virtual simulation helmet can detect activities of the user’s extremities. The incorporation of such advanced technologies is opening doors to lavishing opportunities for market growth.

The Asia-pacific region has rising passenger traffic and massive import & export businesses. As a result, the region is likely to be in major need of marine systems and hence, be a major revenue contributor for the market growth. On the other hand, the North American region is projected to stand at a second position in terms of growth in the ship bridge simulator market. This is majorly owing to the stringent regulations issued by the governments in the region for upholding standard security. The LAMEA region is foreseen to witness continuous growth due to the evolving marine trades in these regions.

The Lookout of the Market during the COVID-19 Pandemic

The COVID-19 pandemic has struck the maritime industry with various unprecedented challenges that hampered its supply chain and compelled quicker implementation of digital technologies in numerous areas of maritime operations, including the area of MET. As the virus was capable to multiply at a rapid pace with person-to-person interaction, several processes that need the physical presence of working personnel have been either postponed or limited for averting human mobility, as a protection measures against the COVID-19 virus. The termination of physical training programs, lockdown, and travel restrictions have triggered several difficulties for seafarers to obtain or uphold their certificates of proficiency. As the MET industry is also experiencing various challenges in ensuring the endurance of the MET activities, and in coping and adapting to the restrictions imposed during the COVID-19 pandemic, the ship bridge simulator market growth is expected to decline to a certain extent until the pandemic relaxes.

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Aishwarya Korgaonkar holds a bachelor’s degree in Information Technology from the esteemed Mumbai University. Being creative and artistic, she leaped into the field of digital marketing and content writing. Her love for words makes her write creative and spellbinding content that adds colors to the world.

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

Yantian Port Congestion: How Can Shippers Navigate Another Major Supply Chain Disruption?

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While the global logistics industry has not been a stranger to disruption this past year, the congestion at the Port of Yantian in China is starting to impact the market at an exceptionally high level. At the current pace, it’s going to be even more disruptive than the Suez Canal blockage this spring and the ongoing congestion at the Port of Long Beach/LA over the past year. This is due to the magnitude of the trade lanes and exports the port touches. Unlike the Suez Canal incident or other recent port issues, which have impacted a more limited number of regions and trade lanes, the Port of Yantian is a major export hub for multiple large markets like Europe, North America, Latin America and Oceania.

This disruption also came on top of an already brittle logistics system which is currently grappling with several unprecedented challenges, including equipment shortages and decreased schedule reliability, to name a few. Right now, the reliability that the vessel carrying your goods or expected to pick up your goods will show up on time is roughly 5%. At this time last year, it was around 80%+. And, as ocean carriers introduce more blank sailings or skip ports to start improving the reliability percentage, that means the freight that was skipped is now added to the backlog of containers that will flow into the next vessel.

It’s likely we won’t see a large shift in congestion until the demand levels out.  And while this market does not lend itself to a silver-bullet solution, there are things shippers can do to keep their supply chain afloat:

1. Be open to hyper flexibility

While flexibility is important any time global logistics are involved, the phrase ‘now more than ever’ holds true here. Currently, delays at the Port of Yantian are ranging from 10-15 days, which is a large jump from the 2-7 day delays we experienced just few weeks back.

Switching between ports, modes, and trade lanes has been an active strategy to avoid these delays, but shippers can’t rely on only adjusting once or twice since other shippers are also making these shifts as they compete for limited space. A good example of how this plays out is in the case of congestion at the Port of Oakland. Over the last few months, as the delays at the LA port were mounting, carriers started diverting sailings to Oakland. The result? Oakland is now also severely congested and suffering from the same unpredictability.

Fact remains, ocean carriers are deploying the most capacity on the U.S. west coast (USWC) routing, and as complexities in the interior of the U.S. continue to be exacerbated (i.e. lack of chassis and rail congestions), carriers continue to limit options for containers moving inland. Shippers need to continue to be flexible in enabling containers terminating on the USWC and leveraging transloading and trucking inland options.

When considering flexibility across modes, keep in mind air may be the solution for a few shipments, but it’s not a feasible option to shift all your ocean freight to air. Instead, exploring a mix of modes, like LCL + air, may offer a more realistic opportunity for your company in a more cost-competitive way. Having the right partner with a global suite of service and technology offerings coupled with scale and a strong inland network, is going to make the difference for supply chains in the market.

2. Prepare for ultra-prioritization

Prepare to make tough decisions on what freight is most important to move. This can be especially difficult for companies importing seasonal items, like patio furniture or pools since their selling window is limited.

With today’s demand, most shippers would classify all their freight as a top priority but shipping it all at once may not be realistic. It’s important to sit down and have those conversations now so when the opportunity presents itself for portions of your freight to move, like in an LCL shipment, you’re ready to make the call.

3. Don’t dismiss historical data

I’ve been in the business 20 years and never seen anything like this in a global magnitude, impacting almost all core trades. However, a unique situation does not mean historical data no longer lends itself to helping us find solutions.

The market will improve, and things will get better. However, these issues tend to be cyclical as we look at the data. We need to build resiliency around supply chain and continue to have options to navigate. While some of these events are hard to predict and plan, there are things that you can do, such as diversifying distribution center locations, sourcing, etc.

Final Thoughts

Until the high demand subsides, the above points will be crucial moving forward. C.H. Robinson has always been focused on working alongside our customers to help them succeed – and that’s no less true during times of incomparable volatility. It’s important to keep an open line of communication and to be open to creative solutions. As we work through this together, I encourage you to keep tabs on our data-driven market insights page and reach out to your representative.

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Archives, Global Logistics, Ocean Ports

PORTS WITH PASSENGER LINER OPERATIONS LOOK FOR WAYS TO REOPEN SAFELY AND QUICKLY

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The U.S. Centers for Disease Control and Prevention (CDC) issued a Framework for Conditional Sailing Order in October 2020 that remains in effect until Nov. 1, 2021. The framework was established to allow cruise lines to resume activity after being shut down for a year by the global pandemic. The order applies to passenger operations on cruise ships with the capacity to carry at least 250 passengers in waters subject to U.S. jurisdiction. 

Although the CDC says it would prefer if people didn’t cruise at all, this action has been more aggressive than in Canada, which has announced its cruise season has been canceled for the second straight year in 2021. The ban extends until Feb. 22, 2022.

“Returning to passenger cruising is a phased approach, and our current focus is on the protection of crew and working with cruise lines to implement the initial phase requirements of testing all crew and developing onboard laboratory capacity,” said Jason McDonald, CDC media spokesman, in an email.

“Future orders and technical instructions will address additional activities to help cruise lines prepare for and return to passenger operations in a manner that mitigates COVID-19 risk among passengers and crew members, including simulated voyages, certification for conditional sailing and restricted voyages,” he added.

The new technical instructions will give cruise ports and terminals direction in providing further protocols and programs to help protect passengers, crews and port employees when cruising resumes.

However, ports and terminals have not been sitting idly by since the pandemic struck North America more than a year ago. Ports in the U.S. have been following the CDC’s lead and developing protocols and programs to reduce the COVID-19 risk.

The Florida Ports Council, which provides leadership for the state’s 14 deep-water seaports, has been working diligently with its membership on pandemic response. 

“While maintaining a state of readiness for cruising to resume, our ports are diligently protecting workers through enhanced sanitation procedures, personal protective equipment and mitigation response, including capital infrastructure retrofitting equipment, improved HVAC (heating, ventilation and air conditioning) filters and hands-free building access,” said Doug Wheeler, the council’s president & CEO.

One major impact of the pandemic has been the devastating financial loss to the entire cruise industry. The council is also working to address this issue.

“We continue to work with our fellow U.S. seaport associations to press for emergency relief for U.S. seaports, including cruise ports,” said Wheeler. “Unfortunately, seaports have been left out of prior emergency relief legislation. The good news is that Congress created the Maritime Transportation System Emergency Relief Program last year. Unfortunately, it was not funded within the omnibus bill passed by Congress at the end of the year. We are hopeful that funding for the program will be included in this next relief package.”

On the Great Lakes, Port Milwaukee has, since April 2020, been proactively addressing the pandemic through various means, says Jazmine Jurkiewicz, the port’s Trade Development Representative. 

“Port Milwaukee has continued to make preparations for the 2021 cruising season and beyond,” Jurkiewicz said. “All regulations imposed by the CDC and Department of Transportation have been closely monitored and adhered to. While not a regulating body in the United States, Transport Canada is also a major factor in the cruising industry for the Great Lakes and has been closely monitored as well.”

Port Milwaukee has also purchased a new mobile X-ray trailer to reduce the physical interaction between passengers and security teams clearing luggage. It is expected to be delivered in July. Jurkiewicz said the port is also “continuing collaboration and coordination with the Milwaukee Cruise Collaborative members to distribute information effectively to local tourism organizations.”

At the municipal government level, the city of Milwaukee Health Department has performed detailed evaluations to examine the exposure risk at the port and all recommendations have been followed.

On the West Coast, the Port of San Diego, California’s third-largest cruise gateway to the Mexican Riviera and other major southern destinations, has made pandemic response a big part of its daily routine.

“We will be working with local health officials, cruise line officials and other authorities to put the needed infrastructure in place to resume operations when the time comes,” said Adam Deaton, the port’s Senior Trade account executive.

“One possible plan is to open a 9,000-square-foot area of the B Street Cruise Ship Terminal that would enlarge it to better respect and manage social distancing,” 

Deaton continued: “We expect, through the CDC framework process, to reopen cruise and guidelines. We anticipate those guidelines will include extra cleaning and disinfection protocols, face covering requirements, social distancing protocols, staggered and scheduled cruise passenger check-ins, plexiglass use to provide safety barriers between passengers and terminal workers, availability of hand sanitizer and handwashing, temperature checks and more.”

He added that all inbound vessels must notify the U.S. Coast Guard and Customs and Border Protection 14 days ahead of their scheduled arrival in San Diego, even if no one on board is exhibiting symptoms and, of course, to notify the two agencies immediately if anyone aboard a vessel is exhibiting symptoms of communicable diseases such as COVID-19.

At the Port of Galveston, where cruise operations provide 65 percent of annual port revenues, the response has been in a serious and rapid fashion.

“We’ve been working with the cruise industry and others for the safe, sustainable return of cruising in 2021,” says Rodger Rees, port director and CEO, Galveston Wharves. “We’ve invested more than $73,000 in health and safety enhancements at our two cruise terminals in preparation for cruise activity ramping up,” 

Galveston, the fourth most popular cruise port in North America, immediately began, along with cruise and shipping lines, to monitor daily life at Galveston Wharves.

Early in the pandemic, Galveston Wharves hosted a multi-agency tabletop exercise to review and coordinate planning, responses and communications among the local, state and federal entities that would respond if the coronavirus impacted the Galveston maritime industry.

That initial meeting laid the groundwork for a longer and continuous planning process for ports and terminals. 

With the possibility of some cruise lines restarting their business, cruise lines and ports are exploring more robust screening protocols, expanded cleaning and sanitation practices and comprehensive shipboard prevention, surveillance and response measures.

Galveston Wharves is planning a number of changes in its two cruise terminals, including touchless bathroom fixtures, plexiglass shields in customer service areas and enhanced air handling systems plus various other health and safety concepts are being explored.

In 2019, the cruise industry had a $1.6 billion economic impact in Texas, making it extremely vital to the Lone Star State.

Port Tampa Bay’s response to COVID-19 was, like others, swift.

“We responded immediately and swiftly to the pandemic,” said Paul Anderson, Port Tampa Bay’s president & CEO. “Prior to the CDC’s no-sail order, we had already begun disinfecting our cruise terminals and increasing daily cleaning efforts.” 

The port says it will follow the guidance of the CDC and individual cruise lines on whether they will require COVID-19 tests for passengers.

In addition, Anderson said, “Port Tampa Bay has taken extra precautions to keep our cruise terminals clean and disinfected and we sanitize them with an EPA-approved chemical to prevent the spread of COVID-19 every 30 days. We will continue to take this precaution when cruises resume.”

Port Tampa Bay is “working closely with our cruise line partners to follow the updated CDC guidelines for the conditional sailing order and we are prepared to welcome them back when they are ready,” Anderson added.

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Archives, Global Trade Daily, Ocean Ports, Stories

HOW ROLL ON/ROLL OFF PORTS RESPONDED TO THE COVID-19 PANDEMIC

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The COVID-19 pandemic wreaked havoc on global shipping. One of the categories hit worst was roll-on/roll-off (Ro/Ro). These ships, which revolutionized the transport of automotive and military vehicles, often found themselves with nowhere to go as automakers shut down their plants in the first half of 2020 to stop the spread of the coronavirus. 

Figures compiled by the UN Conference on Trade and Development (UNCTAD)—and published in its report COVID-19 and Maritime Transport: Impact and Responses—show just how bleak the Ro/Ro sector got, with the ships stopping in five percent fewer ports in the first quarter of 2020 than the same quarter a year earlier, and nearly 25 percent in the second quarter.

“The COVID-19 pandemic has significantly impacted on Ro/Ro services,” states the UNCTAD report. “Since March 2020, port calls by Ro/Ro ships worldwide declined by 22.8 percent compared with the same period in 2019. One in four ship calls has been suspended. Total calls by Ro/Ro ships since the beginning of 2020 declined by 13.8 percent as compared with the same period in 2019.”

While those declines were bad, it’s also true that vehicle traffic rebounded in the latter half of the year. We looked at 10 U.S. ports that have Ro/Ro capability to see how bad the situation got before they recovered—and how they did it. All of these ports instituted special COVID-19 protocols at the start of the pandemic, and all have remained operational throughout the crisis.

BRUNSWICK, GEORGIA

Port officials say that in the spring of 2020, the closure of so many automakers dramatically lowered the number of automobiles entering Colonel’s Island Terminal. May 2020 saw the worst volume decrease—down 77 percent compared to May 2019.

The rebound started in June, though port officials say Ro/Ro traffic that month was still 38 percent below June 2019. July was better, in that it was only down 11 percent. By August, Ro/Ro traffic was actually up 9 percent, though September was flat. The rest of the year saw Ro/Ro traffic up 32 percent over the previous year; November down 16 percent, and December was 27 percent ahead of the same month in 2019.

For the year, Colonel’s Island terminal served 435 vessel calls in 2020, compared to 466 in 2019. Put another way, in 2020 the Port of Brunswick handled 587,395 units of Ro/Ro cargo, a decrease of 25,506 (4 percent) compared to 2019.

BALTIMORE, MARYLAND

The Port of Baltimore ranks “first among the nation’s ports for volume of autos and light trucks, roll on/roll off heavy farm and construction machinery, and imported gypsum,” according to the Maryland Port Administration. After sustained decreases in Ro/Ro traffic throughout the spring, December totals showed a triple-digit increase—the sixth consecutive month of increased compared to the first months of the pandemic, according to a Feb. 3, 2021, Maryland Port Administration news release. What’s more, December figures for general cargo, containers and Ro/Ro represent year-over-year monthly gains versus December of the previous year.

“Throughout the pandemic, the Port of Baltimore has been a barometer of Maryland’s economic recovery, and the latest figures give us great optimism for the new year,” Governor Larry Hogan said in the news release. “The port’s healthy rebound is an indicator of increased consumer demand, and we’ve proven we have the talented workforce and the infrastructure to answer that demand.”

By December 2020, 67,063 tons of Ro/Ro traffic moved through the Port of Baltimore—up nearly 36 percent from June. In fact, December was so good that Ro/Ro traffic was up 1 percent from the same month in 2019.

CHARLESTON, SOUTH CAROLINA

In the spring of 2020, BMW, Mercedes-Benz and Volvo shut down auto plants in the South due to COVID-19. This cut Ro/Ro traffic into Charleston by a third, according to JOC.com. 

But by August, the numbers started to recover. “Among the encouraging signs that port officials highlighted was the highest July on record for vehicle movement through the port,” according to Aug. 20, 2020, post in The Maritime Executive. “The strength in the Ro/Ro sector they believe signifies a return to normalcy at automotive plants throughout South Carolina and the Southeast.”

Port officials are so encouraged that they see a stronger rebound throughout 2021.

“We are encouraged by some signs of an initial rebound in our container and automotive volumes, as well as an increase in imports and a decline in blanked sailings,” S.C. Ports President and CEO Jim Newsome said in an Aug. 20, 2020, Maritime Executive post. “However, a more substantial recovery is dependent on the duration and intensity of the economic impacts from the pandemic, and ultimately, on a vaccine.”

JACKSONVILLE, FLORIDA

Like all U.S. ports, JAXPORT saw Ro/Ro traffic hit hard by the coronavirus. But the rebound in the summer and fall was strong. In fact, the last quarter of calendar year 2020 was “the second busiest quarter for vehicles in the port’s history,” according to a Feb. 11, 2021 JAXPORT news release.

Given that it’s one of the nation’s most diversified ports, and that means it’s “well-positioned to continue to see increased volumes to satisfy growing consumer demand in nearby markets throughout the Southeast, including South Florida, Orlando and the rest of the I-4 corridor,” said Alberto Cabrera, JAXPORT’s director of Automotive Accounts.

“An increase in U.S. military vehicle movements at the port helped to offset the industry-wide decline in commercial shipments due to the temporary shutdown of auto manufacturing over the summer caused by the coronavirus,” said Cabrera.

He adds that 2021 should be a “robust year” for emerging vehicle technology. “As manufacturers continue to rebound from the pandemic shutdowns, we will see the release of many new models with the advanced technology, including autonomous driving, steering assistance, and forward collision prevention, that consumers have been demanding,” Cabrera said. 

PHILADELPHIA, PENNSYLVANIA

In late 2019, PhilaPort opened a giant new auto terminal and Vehicle Processing Center (VPC). “The VPC at Southport is capable of servicing 200 cars per hour and fully processing over 1,000 cars daily,” a PhilaPort news release said at the time. A few months later, the pandemic hit. After that, Ro/Ro traffic “was down, but not as much as the other Ro/Ro ports,” a PhilaPort spokesman said.

The port instituted new COVID-19 protocols, including closing the main administration offices in the early months of the pandemic. But by late September, the port reopened the offices. Today, the port is close to operating as usual—though with some adjustments. 

“This port handles almost 1 million tons of forest products in a normal year,” said Penn Warehousing and Distribution’s Tom Mutz in a Feb. 5, 2021, PhilaPort news release. “But COVID and new modes of consumer behavior have resulted in even greater amounts of forest products entering our port.”

GALVESTON, TEXAS

Port officials made clear that COVID-19 had very little impact on the operations at the Port of Galveston. That being said, the temporary closure of many auto plants did cause a significant slowdown in Ro/Ro traffic for much of 2020. You can see it in the numbers provided by port officials: The port moved 487,371 vehicles in 2019, but just 314,790 in 2020.

That said, port officials noted that other traffic at the port is strong. In fact, they report that the port saw 25 cargo vessels in January 2021—up considerably from the 19 that arrived in pre-pandemic January 2020. 

HUENEME, CALIFORNIA

For the Port of Hueneme, May and June of 2020 were the worst months of the pandemic for Ro/Ro traffic. During those months, Ro/Ro ship traffic dwindled almost to zero. Recovery finally came in the last quarter of 2020, which saw four to five Ro/Ro ships coming into port every week. 

But the damage had been done. In 2019, Ro/Ro ships moved 346,288 autos in and out of the Port of Hueneme, but just 282,164 in 2020—an 18.5 percent drop in a year. Overall tonnage dropped at the port 1.8 percent due to the pandemic. But so far, officials say Ro/Ro volume is still showing a strong recovery and is now 1 percent higher than the same period last year.

Port officials also say their own internal operations and communications plan worked very well in dealing with COVID-19 cases. In fact, they say the port saw just 19 reported COVID-19 cases since the pandemic began in March 2020. Currently, the port is working with local officials to prioritize the vaccinations cycles for their workforce.

NORFOLK, VIRGINIA

For the first half of 2020, the Port of Virginia saw a significant drop in trade—due both to the COVID-19 pandemic and trade tariffs. But port officials are proud that throughout the crisis, the port has not lost a single-day of productivity. Despite the drop in traffic, the port instituted no layoffs or cuts in pay and benefits. Officials also noted that since the port was processing less cargo, efficiencies increased—dwell-time for rail imports, berth productivity and turn-times for motor carriers. The port also used the slow period to accelerate maintenance schedules for equipment and make operational tweaks.

By the end of the year, the Port of Virginia was actually setting records: The port processed more than 260,000 twenty-foot equivalent units (TEUs) in December, making it the best volume on record for that month. The port also set its all-time monthly volume record in November 2020 by handling more than 280,000 TEUs.

Today, Port of Virginia officials describe their Ro/Ro capabilities as “strong.” They expect a rebound in both automobiles and traditional Ro-Ro cargo in 2021, which they say they can accommodate at either their Newport News Marine Terminal or the Portsmouth Marine Terminal.

LONG BEACH, CALIFORNIA

Long lines of shipping traffic into the ports of Long Beach and Los Angeles are familiar to everyone within five miles of the Southern California coastline. Even in 2020, the traffic was considerable.

“Initially, the COVID-19 pandemic had a negative impact on the volume of containers flowing through the port, but the latter half of the year was very active as shippers worked to satisfy pent-up demand for goods,” said Port of Long Beach Executive Director Mario Cordero. “The Port of Long Beach had its best year on record in 2020, with 8,113,315 TEUs moved, up 6.3 percent from 2019. The port exceeded the previous annual record set in 2018 by 22,292 TEUs.”

But the same can’t be said for Ro/Ro ships. In fact, Ro/Ro data from the Port of Long Beach shows abysmal numbers: 302,811 vehicles in 2019, but just 239,135 in 2020.

To ensure that 2021 is good for all categories of shipping, Cordero is focusing on protecting his workforce.

“The nation’s waterfront workers have kept this country’s supply chain functioning since Day One of the pandemic, and they are at high risk,” Cordero said. “Prioritizing the waterfront workers for vaccination is of paramount importance, both for their safety, and for the sake of the economy. We are continuing to work with health officials to vaccinate essential workers, to maintain the fluidity of cargo movement.”

SEATTLE/TACOMA, WASHINGTON

The Northwest Seaport Alliance (NWSA), the operating entity behind the ports of Seattle and Tacoma, is the fourth largest container gateway in the United Sates. And the COVID-19 pandemic hit the NWSA hard across the board.

“Total container volumes in March were down approximately 21 percent as compared to March of 2019,” said John Wolfe, the NWSA CEO, according to an April 15, 2020, story in American Shipper. “That brings our year-to-date first-quarter decline to 15.4 percent.”

The situation at the ports was still bad, even into October.

“The economic fallout from COVID-19 continues to disrupt supply chains across the country and around the world,” stated an Oct 20, 2020, NWSA news release. “The NWSA gateway saw 59 blank sailings through September, surpassing the total number of canceled sailings in 2019.”

As with most ports in the U.S., by the end of the year cargo traffic had rebounded or even exceeded 2019 levels at the NWSA ports—except for auto volume. That stood at 156,205 units, down 18.6 percent from the previous year, according to a Jan. 20, 2021, NWSA news release.

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Archives, Global Logistics, Global Trade Daily, Ocean Carriers

Three Supply Chain Risk Management Lessons You Can Learn from the Suez Canal Block

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The Ever Given vessel is floating, but the ship is not out of hot water. In fact, Egyptian authorities said it will remain in the Suez Canal until they are compensated by the vessel owners for the damage, labor, and disruption caused. Although the cargo on the Ever Given is still at a standstill, other ships have been able to freely move through the canal over the past few weeks.

Even still, the effects of the Suez Canal block will continue to ripple far beyond the cargo that remains stuck on the Ever Given. The influx of delayed cargo has disrupted offloading schedules at ports, delivery schedules for shipping companies, and even orders sent directly to consumers. As an industry, it’s imperative for us to learn from this and develop strategies to minimize the impact of similar blockages should they happen in the future.

Now that we can view the incident in hindsight, I wanted to share three risk management lessons you can take away from this to create a healthier supply chain.

1. The entire supply chain can be impacted by one accident

Although the Suez Canal handles only 13% of global trade, its blockage rippled through the supply chain worldwide. The BBC reported that 369 ships were stuck waiting for the Ever Given to be refloated. Not only did all those ships have significantly delayed cargo, but the disruption created a backlog of cargo that continues to be felt today at ports, warehouses, shipyards, retail locations, and ultimately, by customers.

For an example of the negative effects this sort of delay can have, let’s look at perishable deliveries. Perishables are on tight delivery schedules that ensure the product arrives at its destination fresh and ready for purchase. Adding a week to the delivery timeframe for perishables can kill the entire supply chain. Even if the goods are still delivered in acceptable condition, they will not be able to spend as much time on shelves, resulting in a massive amount of food waste and lost profit.

The Suez Canal block has also affected supply chains through the ships that were rerouted from the canal. These ships will arrive later than expected and have a higher potential for damaged cargo as they spent more time navigating through rough seas. This may delay shipments, cause inventory shortages, and create logistical difficulties at various offloading points.

We have yet to even see the full range of effects that this mishap will have on the global supply chain, but it has proven that any incident in the supply chain ripples out to points all across the globe.

2. Flexibility is key

Congestion and disruption can always get worse. Because shippers and even logistics experts can’t always predict exactly what will happen, it’s important to have a plan for every eventuality. Planning ensures that you remain flexible and meet your goals, regardless of the obstacles faced along the way.

To remain properly flexible, you need to have a broad range of options on hand. For example, at C.H. Robinson, we assist our clients through our suite of global services. We use a diverse array of services to ensure that our clients are supported, no matter the situation. For instance, when approaching ocean shipping, we leverage full container load (FCL) and consolidation less than container load (LCL) ocean services to create a diversity of options for our customers. Not only does this allow them to choose the option they desire, it also provides them with alternatives should anything unexpected occur.

Additionally, using the insights gained from logistics technology, in particular from supply chain connectivity technology, can help you see what a supply chain error or delay will affect, making it easier to get ahead of the effects before they derail your operation.

Ultimately, this is all in pursuit of resiliency. Because there are so many moving parts in the global supply chain, it’s unreasonable to expect that each part will always be in sync. An excellent logistics plan with an excellent logistics partner combine to ensure resiliency against even the most unexpected events.

3. A risk management strategy is no longer a luxury

Since the global supply chain has grown so large and so complex in the 21st century, risk management strategies have become a necessity. In most cases, customers expect that they are a given. In the case of the Suez Canal incident, none of the ships stuck behind the Ever Given ever expected that the Suez Canal would be blocked, and no one on the Ever Given expected to become lodged in one of the world’s most vital trade passages. Regardless of expectations, these accidents occurred, and everyone was scrambling to mitigate the risk.

Because no one can predict such incidents, it’s vital to have risk management strategies in place well before any issues occur. Even before the Suez Canal blockage, the importance of risk management for ocean shipping had been increasing. In February, we touched on the increase in vessel accidents over the past year. In that article, we discussed how to prepare for a vessel accident, and many of the same lessons that we imparted there apply to this situation.

Specifically, the two most important pieces of advice that carry over are purchasing maritime insurance and working with a provider with a global suite of services. We’ve already discussed the importance of working with a reputable, well-connected provider, but it bears repeating that a provider with a global suite of services can correct issues faster and more effectively than you could on your own.

Maritime insurance is something that we highly recommend purchasing whenever you engage in ocean shipping. Imagine how you might feel if you were carrying a large amount of produce that rotted while you were stuck in the Suez Canal. Even worse, imagine you were the managing company of the Ever Given, now being asked to pay up to $1 billion by the government of Egypt for the affair. If you found yourself in this situation and did not have maritime insurance, your company could quickly find itself sunk by a combination of lost revenue and damages. Even on a smaller scale, if you were shipping cargo through rough seas and a single container were lost or damaged, having insurance would save you from stressful financial headaches.

Spare yourself trouble by staying prepared

Issues like the block in the Suez Canal have a lot to teach shippers and logistics experts about the interconnected nature of global supply chains. To provide the highest possible level of service to your customers, consider the plans that you have in place for when something goes wrong in the supply chain.

Ready to protect yourself against supply chain disruptions? Connect with our global network of experts to see how C.H. Robinson can provide solutions for your business.