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Descartes Releases April Global Shipping Report: March Volumes at Top West Coast Ports Increase Significantly

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Descartes Releases April Global Shipping Report: March Volumes at Top West Coast Ports Increase Significantly

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Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, released its April Global Shipping Report for logistics and supply chain professionals. U.S. container import volumes in March 2023 increased significantly from February 2023, largely driven by the Ports of Los Angeles and Long Beach, which was very counter intuitive, but kept the monthly trendline aligned with pre-pandemic 2019 volumes. Despite overall increases, port transit delays stabilized for all ports. Imports from China continued their downward trend and are almost 10% lower than their high in February 2022. The West Coast labor situation has still not been sorted out. The March update of the logistics metrics Descartes is tracking shows some consistency with pre-pandemic import volume seasonality but continues to point to challenging global supply chain performance in 2023.

March 2023 U.S. container import volumes increased 6.9% from February 2023 to 1,853,705 TEUs (see Figure 1). TEU volume was down 27.5% from March 2022, but up 4.2% from pre-pandemic March 2019. Two points to consider with the March numbers: 1) March has 31 days versus 28 for February and 2) With the Chinese Lunar New Year holiday occurring in January 2023, there still could be some impact on container import volumes in early March 2023.

Figure 1. U.S. Container Import Volume Year-over-Year Comparison

Chart, line chart Description automatically generated

Source: Descartes Datamyne™

“Container import volumes at the Ports of Los Angeles and Long Beach have been in decline, but in March they experienced significant increases (see Figure 2). 2023 continues to track 2019 volumes,” said Chris Jones, EVP Industry and Services at Descartes. “There was also good news in that the port transit delay times remained constant despite the significant volume increases.”

Figure 2: February to March Comparison of Import Volumes at Top 10 U.S. Ports

Source: Descartes Datamyne™

The March report is Descartes’ twenty-first installment since beginning its analysis in August 2021. To read past reports, learn more about the key economic and logistics factors driving the global shipping crisis, and review strategies to help address it in the near-, short- and long-term, visit Descartes’ Global Shipping Resource Center.

About Descartes

Descartes is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, performance and security of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, schedule, track and measure delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world.

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3pls, Archives, Global Logistics, Global Trade Daily

World Bank Releases Logistics Performance Index 2023

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Resilience and reliability are crucial in the performance of logistics

The World Bank today released its 2023 Logistics Performance Index report, a measure of countries’ ability to move goods across borders with speed and reliability.

The seventh edition of Connecting to Compete, the Logistics Performance Index (LPI) report comes after three years of unprecedented supply chain disruptions during the COVID-19 pandemic, when delivery times soared. The LPI, which covers 139 countries, measures the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade- and transport-related infrastructure, and border controls.

On average across all potential trade routes, 44 days elapse from the time a container enters the port of the exporting country until it leaves the destination port, with a standard deviation of 10.5 days. That span represents 60 percent of the time it takes to trade goods internationally.

According to LPI 2023, end-to-end supply chain digitalization, especially in emerging economies, is allowing countries to shorten port delays by up to 70% compared to those in developed countries. Moreover, demand for green logistics is rising, with 75 percent of shippers looking for environmentally friendly options when exporting to high income countries.

Such policies include improving clearance processes and investing in infrastructure, adopting digital technologies, and incentivizing environmentally sustainable logistics by shifting to less carbon-intensive freight modes and more energy-efficient warehousing.

Download the report: http://lpi.worldbank.org/report

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Archives, Global Logistics, Global Trade Daily, Technology

Cold Robots Revolutionize Cold Chain Logistics!

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The labor attraction to the cold chain facilities is not growing, however, the market does. The global cold storage market size was valued at USD 138.97 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 17.2% from 2023 to 2030. Therefore, the cold chain turns to automation to meet internal productivity needs and customer expectations and that’s where mobile robots play an essential role.

Efficiency in every way

‘Efficiency’ here has several connotations. There is the efficient use of the available space. Many cold stores are quite small – often ‘cold rooms’ within larger buildings. But demand for cold space, from private companies’ own facilities to ‘public’ stores operated by a 3PL for multiple customers, is increasing. In the food chain in particular, companies from processors to distributors and retailers are looking for larger facilities – the Cold Chain Federation (CCF) has identified 678 units of over 50,000 square feet, and there are many that are much larger still. But cold stores are expensive to build and equip, and although the CCF recently estimated that some 16.7 million square feet of new space is under construction or being fitted out, that may not meet increased demand, especially as so much of the existing stock (34%) is over 25 years old and some of this is converted, not always very effectively, from other uses.
Cold stores must also be efficient in operation, which is key at a time of gas and electricity bills rising remorselessly. Although a well-built, equipped and run cold store uses a lot less energy than is commonly supposed, there is still an imperative to improve storage density and operations to minimize the heat coming in through open doors. And contrary to popular opinion, cold chain warehousing is not usually about minimally manned, long-term, bulk storage. Many cold chains move goods in and out of stores rapidly and involve all the break-bulk, order-picking, stock rotation and other operations familiar to ambient warehousing. That has to be performed just as efficiently and productively but in much more arduous conditions.

This means that labor, too, has to be deployed efficiently. In November, the Cold Chain Federation noted “10 percent to 20 percent shortage rates” among its members. The pool of workers prepared to perform arduous, even hazardous, tasks in cold conditions is decreasing. In addition, there is an increasing realization of the need to limit the length of time that workers spend in the cold before taking a break in warmer areas, and of the long-term impacts of heavy manual tasks in cold conditions.

 Overcoming technical issues

Given all this, the cold store would seem an obvious arena for the introduction of automation. But this is not without its problems. There are technical issues – operation at low, and especially sub-zero, temperatures, can embrittle and otherwise degrade materials including metals, plastics and rubber tires. Electric and electronic components can be affected by ice and condensation. Batteries, in particular, have degraded performance and shorter lives at low temperatures. Fixed mechanization, such as conveyors, takes up refrigerated space that isn’t being used to store the goods. There are safety and operational issues too – it isn’t easy to perform complex control operations or to ensure that people are adequately protected from machinery when workers are wearing heavy and cumbersome protective clothing and both their physical and mental agility may be compromised by the low temperatures alongside the hazards of condensation and ice.

Not all AMRs can work in cold storage. iFollow, however, has a range of robots for cold chain logistics that transport from 300 kg to 1500 kg payload down to -25°C and is specific to the cold store environment. This is due to its approach to safeguarding electronics and batteries. The temperature of key electronic components is regulated by an iFollow-developed servo system which eliminates condensation (and therefore, icing,) at temperatures as low as -25° – a particular issue when moving regularly between cold and temperate spaces. This also means that battery life is not degraded. Depending on the size of AMR, between 12 and 18 hours of autonomous operation are available from a 2-hour charge time. Fewer battery charges or changes obviously improve productivity, but also reduce the space needed for recharging.

 Using AMRs rather than ride-on vehicles eliminates the known hazards of the latter – present in any warehouse operation but exacerbated in cold and slippery conditions. Specialized cold-store standard trucks are also not cheap.

Operator control is also suited to cold store conditions. It is not reasonable to expect workers to input complex instructions while wearing heavy gloves or to require them to take their gloves off for extended periods. The Mycelium WCS software from iFollow, which is compatible with all available WMS/ERP systems, can be used through any computer or tablet with most instructions available through just one or two clicks.

AMRs do not require the segregated space of conveyor-based systems and they can turn in their own footprint, unlike most AGVs which require a defined bend to corner. This maximizes storage space, or to put it another way, minimizes the volume of fresh air being refrigerated. Also unlike AGVs, AMRs do not require semi-permanent predefined pathways, thus allowing more flexible use of warehouse space. They also do not require especially smooth and even floors – an issue with some older or converted cold stores – indeed, the implementation doesn’t usually require any expensive infrastructure at all.

An ability for an AMR to carry two roll cages at once, to a maximum load of 1,500kg offers an advantage, particularly in the cold store environment because it reduces the number of times doors have to be opened and closed. That not only reduces energy loss and minimizes the potential for condensation, but reduces the hazard from the, typically, fast-acting cold store doors.

Collaborative order picking 

The AMRs are designed with safe, collaborative use in mind. Lidar navigation prevents the vehicle from colliding with permanent fixtures, with goods left blocking aisles, or of course with the attendant workforce (who, clad in thermal headgear, may not always be aware of the traffic around them). The typical maximum speed is 1.7m/s – a brisk walking pace – with linear and angular speeds and accelerations closely controlled.

 In typical order-picking use, one operator might work with two AMRs within a defined pick zone, selecting items to roll cages or destinations. The operator can receive pick-list instructions by voice terminal, RF terminal or tablet, and of course, the AMRs are simultaneously receiving their complementary movement instructions. Picking this way can yield 50% better productivity than the conventional manual approach while optimizing the picker’s movements. AMRs can equally be used for the variety of shuttle movements required in the store, moving goods between locations. Through an intuitive fleet management interface, the scenario can be simply generated, and the robotic system works out the movements required.

AMRs, then, can improve the efficient use of cold store space both by increasing productivity and minimizing ‘wasted’ space. The latter, along with reduced door openings, helps with energy efficiency, as does the non-degrading battery performance. The efficiency of scarce and increasingly expensive labor is maximized, and perhaps most importantly, the safety and welfare of both goods and staff are addressed. There is a clear logic in letting AMRs carry the load in cold stores.

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April Global Shipping Update: Import Volumes Increase Significantly at West Coast Ports

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As the second quarter of 2023 unfolds, U.S. economic uncertainty continues to cast its shadow across the supply chain. While inflation appears to be decelerating, interest rates are still high and the political impasse over raising the federal debt ceiling is cause for concern, with the potential to send shock waves through global financial markets if the government defaults. In the midst of this volatile economic landscape, importers and logistics service providers (LSPs) continue to grapple with lingering supply chain challenges.

IMPORT VOLUMES REMAIN ON 2019 TRACK

Largely driven by activity at the Ports of Los Angeles and Long Beach, U.S. container import volumes increased significantly in March 2023, rising 6.9% from February 2023 to 1,853,705 TEUs (Figure 1) and keeping the monthly trendline aligned with pre-pandemic 2019 volumes. While volume was down compared to March 2022 (27.5% drop in TEU volume), imports were still up 4.2% from pre-pandemic March 2019.

When evaluating container import volumes, it’s worth noting that March 2023 numbers may be influenced by multiple factors, including the longer duration of the month (31 days vs. 28 days in February) and the potential lingering impact of January’s Chinese Lunar New Year holiday on early March import volumes.

Figure 1: U.S. Container Import Volume Year-over-Year Comparison

Source: Descartes Datamyne™

WEST COAST PORTS MAKE GAINS

Compared to February 2023, container import volumes for the Top 10 U.S. ports in March 2023 increased 98,379 TEUs (Figure 2). The West Coast ports made strong gains at the expense of the smaller ports, with the Port of Los Angeles experiencing the greatest overall container volume increase (30%), followed by the Port of Long Beach (25%).

The surge in volume at West Coast ports seems counterintuitive given that import volumes from China continued their downward trend—declining 7.4% from February 2023 and down 41.6% from the August 2022 high—and no country had a spike in commodities or exports to the U.S. from February to March. In addition, importers have likely been shifting freight away from the West Coast ports due to the uncertainty of the ongoing—and still unresolved—contract negotiations with the International Longshore and Warehouse Union (ILWU).

Figure 2: February to March Comparison of Import Volumes at Top 10 U.S. Ports

Source: Descartes Datamyne™

Notably, for the top 10 countries of origin, U.S. box import volume increased 2.5% (30,257 TEUs) in March, with Italy (50%), Thailand (39%) and South Korea (23%) experiencing the greatest percentage increases.

PORT TRANSIT DELAYS STABILIZE

Despite the increase in container import volume, port transit delays stabilized for all ports. Overall port transit delays in March 2023 were consistent with February 2023, with transit times at the major East and Gulf Coast ports remaining slightly lower than at major West Coast ports (Figure 3).

Figure 3: Monthly Average Transit Delays (in days) for the Top 10 Ports 

Note: Descartes’ definition of port transit delay is the difference as measured in days between the Estimated Arrival Date, which is initially declared on the bill of lading, and the date when Descartes receives the CBP-processed bill of lading.

ONGOING CHALLENGES HINDER TRADE FLOW

Despite the March data showing consistency with pre-pandemic import volume seasonality, lingering supply chain issues continue to hamper the efficient flow of goods. While the situation has improved since the start of the year, COVID continues to impact manufacturing supply chains, especially in China where companies are still dealing with the fallout of the country’s sudden zero-COVID exit this past December.

The ILWU contract negotiations continue to drag on, with the two sides seemingly no closer to bridging the gap on their disagreements. While there has been little impact on container processing to date, tensions are rising and there are calls to bring in the federal government to assist in the negotiations to resolve the issue.

On the regulatory front, California’s AB5 labor law remains a significant hurdle for logistics and transportation providers, with big implications for truckers at U.S. ports. With no resolution in sight, the potential for AB5 protests—akin to the demonstrations at the Port of Oakland last July that lead to a 28% drop in processed cargo containers—remains a concern.

With cuts to oil production and the war in Ukraine propelling energy prices higher, elevated gasoline costs—a significant contributor to high inflation rates—remain a challenge for importers and LSPs. Indeed, the price of gasoline increased slightly to $3.50 per gallon, according to the U.S. Energy Information Administration, although it was down $0.63 per gallon from the same time in 2022. 

And while the decline in the cost of diesel is good news—decreasing slightly to $4.11 per gallon and down $1.04 per gallon from March 2022—the cost of both fuels is likely to remain elevated for the foreseeable future given the disruption of global energy markets.

TIPS TO MITIGATE ONGOING SHIPPING DISRUPTIONS 

While the pressure on supply chains and logistics operations continues to ease, ongoing issues have the capacity to cause further disruptions as the second quarter of 2023 unfolds. To manage supply chain turbulence, importers and LSPs should review their supply chain strategies to identify opportunities to mitigate risk and moderate supply chain variability.  

In the short term, logistics companies should keep a close eye on ILWU contract negotiations, potential AB5-related port disruptions or decline in port container processing performance, and the spread of any new COVID variants, especially in China, that might impact manufacturing supply chains. 

Given the current economic unpredictability, importers and LSPs should focus on retaining existing supply chain resources, especially drivers. While wage increases are important, building trips to reduce stress and improve quality of life for drivers is equally important for increasing driver retention. 

To improve supply chain velocity and reliability, logistics companies should seek out less congested transportation lanes, including alternative entry lanes through northern and southern borders and inland ports. While total transit time is a valid consideration, supply chain predictability is especially valuable during times of economic uncertainty.

Thinking long-term, importers and LSPs should implement strategies to mitigate the risk of another logistics capacity crisis down the road. Companies may consider evaluating supplier and factory location density to minimize reliance on over-taxed trade lanes and geographical regions that have the potential for conflict. 

PARTING THOUGHTS

Overall, the March U.S. container import data points to less pressure on supply chains and logistics operations, with box import volumes tracking to 2019 levels and port transit delays remaining constant despite significant volume increases at West Coast ports. Yet, despite a degree of relief from the logistical challenges that choked operations during the height of the pandemic, several current issues may cause further disruptions and threaten global supply chain performance in 2023.

COVID continues to impact available supply chain and logistics resources and operations globally, increasing supply chain performance variability, while labor-related issues such as the unresolved ILWU contract negotiations and California’s AB5 law threaten West Coast port operations. 

Although the latest Consumer Price Index report (February 2023) shows a gradual decline in inflation, the rate is still high—driving a rolling recession and continued economic uncertainty in the U.S.; diesel prices continue to decline, but gas prices have risen slightly and remain elevated due to the Russia/Ukraine conflict. By monitoring these key economic and logistics factors closely, importers and LSPs can heighten supply chain resilience to mitigate risk and strengthen operational and financial performance moving forward.

 

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Traxens New IoT Device Leads Smart Container Requirements For Decarbonising Shipping

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Traxens, the world’s first smart-container service provider for the global supply chain industry, unveiled today the new third edition of the Traxens-Box 3, its permanent container tracker and flagship product for shipping lines, freight forwarders and BCOs.

With the shift to green methanol-powered vessels and the increasing safety requirements of the International Maritime Organization, the Traxens-Box 3 IoT device has been completely redesigned to meet the highest level of ATEX certification on the market for explosion safety onboard ships.

Various shipping products are now being subjected to new explosion safety requirements as the shipping industry moves towards clean energy such as methanol-based fuel.

Added to the ATEX redesign, the battery life now reaches 7 years – an increase of 50% compared to the previous model. As a permanent container installation, this feature is critical to maximizing the device’s return on investment during a major part of the life of a container.

While focusing on risk management and cargo safety, Traxens continues to reinforce its main features for greater reliability. Traxens’ door opening detection, whose algorithms are constantly being improved, has already demonstrated its value in numerous cases, such as when consumer electronic goods have been stolen and when authorities have intervened timely after being alerted.

Several thousands of Traxens-Box 3 devices have already been pre-ordered by Traxens’ main customers who will start to deploy them in the following months.

The world’s top shipping lines, which are also Traxens’ shareholders, are already using the two previous versions of the device to convert their assets into smart containers, constantly communicating their location and additional status information.

About Traxens

Traxens has been driving digital transformation in the global supply chain for more than 10 years. The company’s breakthrough loT technology, data science expertise, global logistics experience and standards leadership unlock the value of real-time data generated from cargo assets shipped by sea, rail and truck. Traxens is trusted by hundreds of global cargo owners, enabling them to reduce door-to-door transport costs, optimize their operations and minimize risk. By partnering with the world’s leading shipping lines, authorities and insurance companies, Traxens helps all members of the global logistics supply chain ecosystem to reach a sustainable and optimized supply chain. Traxens is privately held and headquartered in Marseille, France.

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Container xChange Asia Forecaster April 2023

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Asia’s maritime and supply chain industry is on a tumultuous ride, experiencing significant disruptions in trade patterns resulting in container prices dipping, according to the April Asia container market forecaster published by Container xChange, an online container logistics company that provides a marketplace, an operating infrastructure, and a layer of services like payments to container logistics companies globally.

Container oversupply risk looms over China with empty containers at ports

The year-on-year comparison of the Container Availability Index (CAx) in Shanghai presents some interesting insights into the problem of excess containers at the ports in China. Traditionally, the CAx values in Shanghai during Q1 have been lower than the 0.5 balance due to a higher number of outbound containers compared to inbound containers.

However, this year, the trend is just the opposite with CAx value over the 0.6 threshold. The current trend is attributed to the drop in exports during Q1, owing to reduced demand post the peak season quarter (October- December) and the Chinese New Year shutdowns. 

Consequently, the number of containers at ports is usually lower during the Q1 of last two years. However, the situation this year is different. With a demand deficit and a higher number of containers lying idle at the ports, there is a significant rise in inbound containers in China as observed in the Q1 of 2023. This shift in the trend is reflected in the CAx graph below.

Since the beginning of week 37 (September) in 2022, the Container Availability Index (CAx) has consistently remained higher than the previous two years. This indicates an increase in inbound containers at the port of Shanghai since September and a continued upward trend. The trend is also observed in Yantian and Tianjin ports in China.

Our research and interviews with Chinese customers reveal that the post-Lunar New Year recovery in the industry has only recently started and is below the normal expectations for this time of year. According to Descartes, US imports have declined by 16.2% from January, 25% year on year, and 0.3% compared to pre-COVID February 2019.

The Container Availability Index measures the ratio of inbound to outbound containers port-wise and a reading above 0.5 suggest more inbound than outbound containers at the ports. It suggests that ports in China currently have a higher CAx value than in 2019, 2020, 2021, and 2022, indicating a significant container surplus in China. A higher CAx index rating means that there are more inbound containers than outbound containers. Thus, if China’s outbound containers are low, it suggests that main import countries have not been importing goods from China as usual. This trend is apparent in the industry as well.

62% slump in average container prices* Y-O-Y in China in March

According to the analysis by Container xChange, we compare the container prices between March of this year and the same period last year, there has been an average fall of 62% in prices across China. The table below provides a detailed breakdown of the decline in prices at different ports in China. It is noteworthy that this quarter (January to March) has been relatively more stable compared to the overall price fluctuations throughout the year.

Average container price development – North-East Asia
Port Delta to last month Delta to 3m ago Delta to 6m ago Delta to 12m ago
Shanghai 6,00% -14,00% -36,10% -62,30%
Qingdao 3,10% -1,00% -24,70% -58,60%
Ningbo 9,50% 1,70% -26,20% -56,60%
Tianjin -0,50% -7,30% -28,00% -54,70%
Xiamen 6,40% -1,50% -26,40% -54,30%
Shenzhen -9,70% -1,80% -32,50% -60,20%
Guangzhou 11,20% -1,90% -19,00% -56,00%
Dalian -9,60% -25,50% -37,10% -61,10%

*Average prices for containers are the prices at which containers are available to buy at these port locations. 

It is evident that there has been a decline in average container prices in China since the past one year. However, the graph below indicates that the prices have remained relatively stable during the first quarter of 2023. This observation suggests that if there is no further decrease in prices, it is possible that the container prices have already hit the bottom and are not expected to fall any further.

Inta-Asia Trade could give a push to China’s trade figures

On one hand, concerns are being raised due to the shifts in supply-chain and weakened global demand, as companies are diversifying their trade and increasingly sourcing goods from Southeast Asia. On the other, China’s export numbers for March have exceeded expectations, with a significant increase of 14.8% in US dollar terms from the previous year, as reported by China government data.

The unexpected rise in exports can be attributed to improved demand from many Asian countries and Europe, as well as the resumption of production in China’s factories. This is a positive glide considering the container pileup on China ports in the beginning of 2023. 

The uptick in shipments to South-East Asian nations is evidenced by sliding pickup charges on the Intra-Asia trade lane. Average pickup charges dropped by 85% since January 2023.

“The shipping industry is on the verge of completing its lap in terms of container prices bottoming out, excessive inventory, empty containers and everything in between. Once it’s through with its rep, the demand will crop back up. The alluring box rates present for traders offer a ray of hope for the growth of container demand. As the spot rates on significant container trade lanes settle down to levels like those before the pandemic, the trend of decontainerization that prevailed from 2020 to 2022 is now reversing. The container freight rates reached record heights during the peak of the coronavirus pandemic, which resulted in cargo overflowing from containers into minor bulk vessels.”, said Christian Roeloffs, cofounder and CEO, of Container xChange.

However, we cannot compare it to the demand that existed until 2021, as there is still a surplus of inventory that has not been exhausted yet. China has already initiated the process of diversification, although it is still too early to see any visible trade patterns. However, we have noticed a rise in intra-Asia trade. As a result, capacity needs to be adjusted to regions with more stable rate levels and demand to ensure more resilient supply chains in the future. This relocation strategy will decrease reliance on one production and supply chain hub and move towards a smaller and more diverse trading pattern.

The Asia-Europe container shipping lane, which is critical, has experienced a rapid decrease in demand since the summer of 2022, resulting in a sharp decline in container shipping spot freight rates. Carriers have responded by cutting services or cascading capacity to regional trades. However, this has left many empty containers stranded across Europe instead of being returned to Asia and other origin markets for loading with more exports. This accumulation of boxes will gradually decrease when export demand rises again, with the majority being returned to Asia.

China’s port investments give it an edge in global trade

“China’s expertise in developing world-class port infrastructure that can be an asset to strengthen global trade ties and create opportunities for collaboration, despite potential challenges for western countries to compete in this domain. While US and European companies are signalling their intent to shift manufacturing to India and other countries in Southeast Asia, the lack of port infrastructure in these regions remains a major obstacle.”, said Christian Roeloffs, cofounder and CEO, of Container xChange as he commented upon the current state of the container shipping in Asia.   

The lack of harbors able to accommodate large ships in other Asian countries means that investment is essential to handle the mega-container ships that drive world trade. Therefore, it will take a great deal of investment from other Asian emerging markets to catch up with China, and it generally takes port operators up to five years to build a new terminal.

The data from research group Drewry reveals that the rest of Asia needs significant investment to match the capacity of Chinese harbors, which have become essential for transporting goods from east to West. China’s investment of at least $40 billion between 2016 and 2021 in coastal port infrastructure has allowed the country to handle the equivalent of 275 million 20ft containers at its ports last year, up to 80% more than the amount processed annually by all countries in Southeast Asia combined, according to figures from data group Dynamar and the UN. In contrast, the rest of Asia has only 31 port terminals capable of handling the largest ships. Large vessels make up about two-thirds of the shipping capacity for services between East Asia and Europe, according to data provider MDS Transmodal.

For more on container logistics industry developments, download the full report ‘Where are all the containers’ from here 

 

 

 

 

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Synergy NA expands WMS Solution into UAE

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WMS Technology Innovator, Synergy Logistics, is Expanding its Global Operations having Secured its First Customer in the United Arab Emirates (UAE).

Dubai based specialists, Automyze Fulfillment Center, established in 2017, has onboarded technologically advanced, cloud-based SnapFulfil into its newly expanded 25,000 sq. ft warehouse. The initial SaaS contract includes 45 licensed users.

Automyze specializes in start-ups and SME brands positioned for significant growth and currently ships an average 18,000 units a month. However, with their ambitious target to double this over the next six months, they required a WMS with the flexibility and scalability to adapt and grow with them and its customers’ strategic expansions.

The proven flexibility of SnapFulfil’s solution means Automyze will now have accurate and consistent control of inventory and outbound processes, as well as returns, which will help them deliver a first-class service experience for their clients and their customers. The live data functionality will also help maximize performance and cost savings, plus have a tangible impact on strategic growth.

A key attraction of SnapFulfil for Automyze was its Application Programme Interface (API) friendly and robust pathway that meets the challenges of B2C and D2C omni-channel fulfilment. However, identifying the solution is just half of the challenge. Delivering it while continuing to satisfy existing customer requirements – without incurring custom coding costs and delays for new clients – is a different matter.

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Importance of Translation Services in Logistics

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Logistics is a critical component of global trade. Effective communication is essential in logistics to ensure that shipments are delivered on time and without errors. However, language barriers can pose a significant challenge in logistics. This is where translation services come in. This article will explore the importance of translation services in logistics and how they can help businesses overcome language barriers in global trade.

Facilitate Communication

The most apparent benefit of translation services in logistics is that they facilitate communication between businesses and their partners, suppliers, and customers who speak different languages. With translation services, companies can communicate effectively with their partners and customers, regardless of location or language.

This is particularly important in the logistics industry, where timely and accurate communication is critical. In logistics, delays or errors in communication can result in high costs and disruptions to supply chains. Translation services ensure that everyone communicates effectively, minimizing the risk of errors or misunderstandings.

Improve Efficiency

Effective communication leads to improved efficiency in logistics. This results in increased cost savings and improved overall efficiency of the logistics operation. For example, with translation services, businesses can quickly and easily communicate with their partners and suppliers to obtain quotes, negotiate contracts, and manage the shipment of goods.

Increase Customer Satisfaction

Translation services can also help businesses improve customer satisfaction in logistics. Communicating effectively with customers in their language allows companies to build trust and confidence with their customers. This can increase customer loyalty, repeat business, and positive word-of-mouth recommendations.

In logistics, customer satisfaction is critical. Customers expect their shipments to arrive on time and without errors. By providing accurate and timely information in their language, businesses can meet their customer’s expectations and enhance their reputation in the market. Rather than wasting useful time trying to communicate in different languages, translation services make it easy for businesses to keep their customers happy.

Ensure Compliance

In addition to improving communication, efficiency, and customer satisfaction, translation services can help businesses ensure compliance with local regulations in global trade. Many countries have strict rules around the labeling, packaging, and documentation of goods, and these regulations often require translations into the local language.

Bridge Cultural Differences

Finally, translation services can help bridge cultural differences in logistics. In global trade, businesses often work with partners and customers from different cultural backgrounds, and these cultural differences can pose challenges to communication and understanding.

Translation services can help businesses navigate these cultural differences by providing accurate translations that consider cultural nuances and differences. Bridging the gap between cultural differences allows companies to build stronger relationships with partners and customers, leading to more successful and profitable logistics operations.

Translation services are essential in logistics, particularly in global trade, including businesses that require automotive translation. By facilitating communication, improving efficiency, increasing customer satisfaction, ensuring compliance, and bridging cultural differences, translation services help businesses overcome language barriers and succeed in the global marketplace. As companies grow and start operating globally, the demand for translation services in logistics will likely continue to grow, making it an essential component of any successful logistics operation.

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Pros and Cons of Different Types of Cross-Docking

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There are, essentially, two different types of cross-docking you can choose to do. They are the pre-distribution cross-docking and post-distribution cross-docking. Whereas pre-distribution cross docking uses predetermined distribution instructions to allow workers to unload immediately, sort through the goods, repackage them directly, and have them shipped out then and there, post-distribution is different. In post-distribution cross-docking, the workers do not have predetermined distribution instructions.

As such, goods are unloaded and then must spend some time at the warehouse or distribution facility before the orders are properly sorted, and distribution instructions are drafted. From there, they are again packaged, loaded up, and delivered. Of course, the waiting period is not too long, even in this second type of cross-docking. To help you decide which of the two methods you’d like to use, let’s look at the pros and cons of different types of cross-docking more closely.

The pros of pre-distribution cross-docking

Faster distribution

The first difference between the different types of cross-docking and a pro in pre-distribution’s favor is, of course, that it’s a lot faster. Since a distribution list is complete, the workers can immediately load up the goods without delay. Before you even know it, your goods will move to their final destinations. This also makes it a lot easier to avoid missing deadlines. However, it’s not smart to reduce them further to give yourself enough time in an emergency.

No need for a lot of storage space

The second pro in favor of pro-distribution when comparing the different types of cross-docking is that you don’t need much storage space. You need enough space to park your trucks and some for the necessary equipment. But since the goods are moving from one truck to another, that’s about it. You don’t need to learn a ton about logistics to glean the benefits of this. Primarily, of course, saving money you’d typically need to spend on large warehouses.

The cons of Pre-distribution cross-docking

Lots of potential for human error

Since pre-distribution requires much work to be done quickly, the first con is that it also increases human error chances. Sure, it can effectively alleviate warehousing and fulfillment stress, but when people rush to unload, pack, and load up goods again. Eventually, a mistake will crop up, which can be anything from damaged items to wrongly labeled packages.

Little time to account for accidents and problems

We mentioned responding to emergencies in the first pro of pre-distribution cross-docking. Well, you need to give yourself enough leeway with deadlines because this method is not excellent at responding to problems. Since everything is supposed to happen as one continuous action, if a problem pops up anywhere, everything grinds to a halt until it’s resolved. You need to be extremely careful and plan ahead to avoid this effectively. And even then, road congestion and similar unpredictable accidents still adversely affect your operations.

The pros of post-distribution cross-docking

More time to plan your deliveries

The first pro of post-distribution is the fact you have time to plan. While you wait for the distribution instructions to be complete, you can chart the most optimal routes. Make plans for emergencies. You even have time to double-check that all your goods are in proper condition! The pre-distribution does not allow this, and it’s a significant advantage.

Less pressure on your workers

The second significant benefit of post-distribution is that your workers do not have to push themselves so much. They can take a proper break with a delay between unloading and packaging. In the long term, this keeps the workplace happier and your workers healthier and more effective at their jobs. In turn, they can more reliably avoid common types of packaging damage and a host of other human errors that can seriously hurt your business if they keep happening.

The cons of post-distribution cross-docking

The need for warehousing space

The first and the biggest problem of post-distribution cross-docking is, of course, the need for warehousing space. This means your business will have to expand many more resources to furnish warehouses with everything they need to function. Take into account that cross-docking is also popular for more temperature-sensitive items. This is because they can be moved from one climate-controlled to another quickly. In other words, you also need to ensure the warehouse has the suitable condition to protect the items from degrading, which is yet another additional expense you’d need to bear! 

The process has the potential to stall

The final con of post-distribution when comparing the different types of cross-docking is the chance for it to stall. You need to wait for the distribution list to be completed. This is not an issue on a good day since you can expect to earmark most of your inventory at least. But, when interest drops, you need longer waiting times to create a distribution list. In turn, many of your trucks and workers are just idling and waiting for instruction.

Picking from the different types of cross-docking

Now that you are familiar with the pros and cons of different types of cross-docking, you can decide which works best for you. Just remember to take into account everything about your business when making the decision, including, of course, your current and predicted levels of demand.

Author Bio

Jack Bailey is an experienced manager who works for the Royal Moving Company and has plenty of experience with arranging the quick and efficient transfers of equipment and other items needed for the company.

 

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How to Deal with Fear of Failure in the Supply Chain Industry​​​​​​​

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Supply chain issues have been a common topic worldwide over the last few years. Supply chains rely on a vast network of resources, technology, storage, and transportation to keep the process moving to distribution. When these processes are disrupted, it takes time to recover, which devastates providing goods and services. The United States supply chain crisis started in 2020 with COVID-19 and government shutdowns and has continued to grow due to supply and demand imbalances, lack of visibility and coordination, supplier disruptions, quality control issues, trade wars, and factory shutdowns.

Some significant products affected by supply chain issues in 2022 include groceries and food, tampons, baby food, aluminum, and semiconductors utilized for electronics. These shortages have many industries fearful of future failures within the supply chain industry. So how can companies and individuals deal with this fear of failure? We will tell you in this article.

Things are looking up

First of all, it’s important to remember that things are looking up. Supply chain issues have led to greater awareness and investment in supply chains to prevent future problems. It’s predicted in 2023 that there will be fewer supply chain issues, and we will be better prepared to handle situations as they arise.

According to Gardner, within five years, 80-90% of supply chains plan to adopt changes that will help them be more effective, such as commercial innovation, achieving sustainability outcomes, real-time decision-making, and a human-centric work design. These changes will help supply chains better meet ever-changing growth expectations. You can find some peace knowing mitigation and steps for change are taking place.

How to deal with and prepare for failure

Even with changes, fear of failure is still common for many of us. There are companies like Be in Health that can help us learn how to overcome our fears. There are some steps you can take to help you be in the right mindset to handle your fears around supply chain failure. 

These include the following:

Acknowledge and Accept

Start by acknowledging that it is normal to have a fear of failure, especially in an industry that is essential and competitive.

Find the Root Cause

Determine the specific reasons behind your fear of failure. Whether it is related to a particular project or task, invest time and seek guidance to help you through the process to help ensure its success.

Set Goals

Ensure your goals are realistic, as unrealistic goals intensify fear. Ensure your goals are aligned with your skills, resources, and timeline and are broken down into tasks that will make the process less daunting.

Have Back Up Plans

Failure will happen. To alleviate the anxiety behind it, have contingency plans in place that will help mitigate the situation and allow you to be more prepared.

Have a Growth Mindset

A growth mindset believes that skills and abilities are developed through continuous effort and learning. It allows you to view failures as a learning experience and grow from them, which creates resiliency.

Ask for Help

Successful individuals don’t learn from themselves. They learn from colleagues, mentors, and professionals in their industry. Create and foster relationships with people who will offer advice and encouragement and collaborate when needed to help you grow your skills and abilities.

Take Action

Taking action is the hardest step when you fear failure, but it is essential. Learn from mistakes and failures and utilize them to drive and develop new skills. Keep a record of your achievements to remind yourself you are capable of hard things.

Final Thoughts

Dealing with fear requires awareness of yourself and your projects, a level head, proactive planning and goal setting, quick reactiveness, and a supportive network. Remember that failure is part of the process, and following these recommendations will lead to a more resilient you and continued success.