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Descartes Releases April Global Shipping Report: March U.S. Import Container Volume Continues Strong Trajectory

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Global Logistics, Global Trade Daily, Imports/Exports, International Trade, News, Ocean Ports

Descartes Releases April Global Shipping Report: March U.S. Import Container Volume Continues Strong Trajectory

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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. In March 2024, U.S. container import volumes increased 0.4% from February, but jumped 15.7% when compared to the same month last year, indicating exceptional growth when considering the impact of the Chinese Lunar New Year on the second half of March.

Compared to February 2024, imports from China continued to decline because of the Chinese Lunar New Year, reflected by a significant volume loss at the Port of Los Angeles for the second consecutive month. Port transit delays continue to improve as the drought in Panama and Middle East conflict have yet to impact East and Gulf Coast ports. April’s update of logistics metrics monitored by Descartes show that the first quarter of 2024 has been a strong start for U.S. container imports; however, concerns around global supply chain performance are still expected throughout the year because of ongoing conditions at the Panama and Suez Canals, upcoming labor negotiations at U.S. South Atlantic and Gulf Coast ports, Middle East conflict, and the impact of the Baltimore Bridge collapse which remains to be fully reflected in U.S. container import volume data.

U.S. container imports maintain year-over-year strength.

March 2024 U.S. container import volumes remained mostly flat from February 2024, increasing only 0.4% to 2,145,341 twenty-foot equivalent units (TEUs) (see Figure 1). Versus March 2023, however, TEU volume was higher by 15.7%, and up 20.6% from pre-pandemic March 2019, demonstrating that year-over-year performance remains strong. The Chinese Lunar New Year may have masked even stronger growth as it occurred on February 11 and the holiday extended the entire week, which means its impact on U.S. imports did not occur until the second half of March 2024. For a more representative view, Descartes compared the first 15 days of March 2024 to the same time period in 2023 as these time periods were less likely to be impacted by the Chinese Lunar New Year. In this timeframe, U.S. container import growth was 22.7%.

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

A graph of different colored linesDescription automatically generated
Source: Descartes Datamyne™

 “Considering declining import volumes from China, March 2024 was a strong month and continues the robust performance that began in January 2024,” said Chris Jones, EVP Industry, Descartes. “Despite the combined effect of the Panama drought and the conflict in the Middle East, port transit delays showed continued improvement across nearly all the top ports, as March volumes at East and Gulf Coast ports remained stable.”

The April report is Descartes’ thirty-second 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.

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3pls, Global Logistics, Global Trade Daily

Supply Chain Professionals Are at Risk of Spear Phishing: Here’s How to Address It

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Supply chain professionals hold plenty of sensitive information about businesses and their beneficiaries. Guarding this data has become more challenging as hackers refine their methods of attacking individuals and organizations. 

While cyberattacks like spear phishing have become more well-developed, security solutions have also scaled up and improved. Employ the right programs and methods to keep the supply chain safe and businesses moving in the right direction.

Read also: The Rising Risk of Cyber Crime in the Supply Chain

How Spear Phishing Happens

Spear phishing occurs in various communication settings, including emails, phone calls and chat-based platforms. Many people know phishing is a cyberattack targeting multiple individuals and companies. Spear phishing involves posing as a reliable authority to extort data through links and manipulation. It’s more effective because these cyberattacks are targeted.

Phishing attacks feature a general script copied and pasted to various individuals. People who use spear phishing seek information about their victims. For example, a spear phishing message will open with a line about what the recipient and the perpetrator have in common. 

Some people may use AI to remove grammatical mistakes and create hyper-realistic messages. They can adapt and impersonate the voice of a colleague or leader in phone calls to lure victims into sharing important information.

The extra time that goes toward identifying viable targets and conducting preliminary research can make spear phishing much more likely to succeed. Social engineering makes it harder to differentiate a real message from a spear phishing one.

The Impact of Spear Phishing

Big companies fall for phishing scams all the time. General Electric released news about a data breach in February 2020 involving Canon. While processing documents involving benefit entitlements, the company discovered that a hacker accessed a Canon email account to tap into employee information.

Spear phishing can trigger a lack of trust between partners in the supply chain. For instance, when people notice that the fleets shipping their goods compromise their data, it can raise uncertainty and doubt about continuing to order or do business with them. 

The results can also have a devastating effect on a company’s finances. About 39% of organizations affected by spear phishing attacks cite direct instances of monetary loss, like transferring cash. Reputational and financial damage can cause closure or bankruptcy. Such an imbalance can cause supply chain problems and eventually affect the economy.

Addressing Spear Phishing

Spear phishing is a viable threat. However, it is preventable to a certain degree with the correct methods. 

1. Provide Employee Training

Employees in a supply chain are viable targets for spear phishers. They can access sensitive information like names, addresses, certificates, tax forms and Social Security numbers. Educate them about the dangers of spear phishing and to be more discerning with their communications. 

A spear-phishing attack can be incredibly convincing, especially since the sender pretends to be someone close to the recipient. After gaining trust, the perpetrator will send a request, such as opening an attachment or providing login credentials. Promote confidentiality and suggest reporting the incident so IT can verify it. Discourage taking telephone calls from unknown numbers.

Promoting a low profile on social media platforms is also important. Spear phishing experts will likely sweep public accounts to review targets and their backgrounds. Ask employees to limit posting personal information. They should avoid posting company news or mentioning their employer to deter cyberattackers.

2. Verify Organizations

Working with a new supplier or vendor can be exciting. However, be wary of their background and whether they have ties to cybercrimes. Spear phishing can make companies out of thin air or impersonate legitimate ones.

Verify third-party legitimacy before conducting business. It’s best to hold in-person meetings with an established authority rather than relying on digital communications. 

3. Secure Vehicles

Some logistics businesses look to self-driving trucks because of labor shortages. The trucking industry saw a deficit of 80,000 drivers in late 2021. Autonomous vehicles provide a big advantage in meeting demand and regulating fuel use. However, these preprogrammed systems are susceptible to hacking when cyberattackers gain access.

Some people may use spear phishing to pose as a maintenance specialist or another authority figure to gain access to the self-driving system. Restrict access to these assets. Be vigilant when receiving messages.

4. Conduct Inventory Reviews

Inventory is another vulnerable aspect of the supply chain. Stored products can hold incredible value in quality and quantity. Technological devices also have access to sensitive data, so limits should be placed on who can use them.

It’s also imperative to conduct inventory reviews. Regularly update who has accessed what and which devices are on a company’s network. Audit logs of suspicious activity can uncover a spear phishing attack or another cybercrime. 

5. Improve Order Monitoring

Professionals responsible for order management should look for ways to optimize the processes. Some people coordinate through email to manage things— about 82% of companies saw a higher volume in 2022. However, this entails a higher risk of email-based threats like spear phishing.

Use machine learning-powered email security solutions to filter spear phishing messages from an inbox. Seek unique and protected order monitoring platforms. The ideal system can simplify operations and fulfillment while securing vendor and patron information. 

6. Update Company Security

Company cybersecurity should never be overlooked. Adopt the right policies, such as keeping financial information and passwords secure. Passwords should be changed regularly to avoid data leaks that will compromise the supply chain.

Make sure to verify all email recipients and senders. Use a work email address to make internal communications safer in the long run. For external communications, seek tech specialists who can vet profiles.

It’s also ideal to install up-to-date security software on all work devices. Systems like firewalls and antivirus software can detect spear phishing emails and alert employees. Early identification is key to preventing anything drastic from happening.

7. Create a Contingency Plan

Spear phishing can be incredibly elusive and slip through security. That’s why it’s vital to have a contingency plan. The right processes can offer significant damage control and recovery in the wake of a cyberattack. 

If data is compromised, file a cyber insurance claim to cover the damages. It’s also essential to back up data and change all passwords. Restrict access to prevent more information from leaking. Ensure they’re more secure than previous variations.

Seek assistance from the IT team in charge. These specialists can scan and remove malware and other threats from the system. They can also trace the exact date and time the infiltration happened. Companies should also file a report with the Internet Crime Complaint Center. An investigation can prevent criminals from spear-phishing other businesses and bring them to justice.

The Securities and Exchange Commission also requires public companies to disclose cybersecurity breaches and risk management processes. Details should include the nature of the incident and its material impacts and be submitted within four business days.

Shield Supply Chains From Spear Phishing

Supply chains are vulnerable to spear phishing. Companies should be aware of how it happens and stay on high alert at each step of operations. Effective security is vital to ensuring commerce continues without a hitch and nothing interrupts the process.

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Global Logistics, Global Trade Daily, International Trade

Adapting to Emerging Global Trade Routes

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In the wake of recent geopolitical crises, global trade routes have undergone significant transformations, necessitating a reevaluation of how goods flow along emerging corridors. Traditional routes, such as the northern Eurasian corridors, have experienced declines in freight flows since the onset of the conflict in Ukraine, while the Red Sea crisis has further disrupted east-west trade, prompting a search for alternative routes.

The rise of new trade routes, particularly the Middle and Southern Corridors, has reshaped the dynamics of global transport and trade. These corridors, linking China and Central Asia through the Caspian Sea or Iran to Türkiye and Europe, offer efficient door-to-door road transport options and facilitate the seamless integration of different modes of transportation.

In recent years, the Middle Corridor has witnessed remarkable growth in transit volumes, with a staggering 150% increase compared to the previous year. Similarly, the Southern Corridor has seen significant rises in transport operations, highlighting its role in facilitating trade between Türkiye and Central Asian countries.

The attractiveness of these corridors is underscored by their efficiency, with transport from Lianyungang, China, to Türkiye or EU countries taking significantly less time compared to maritime routes via the Suez Canal.

However, the Red Sea crisis has presented new challenges, necessitating innovative solutions to mitigate disruptions to global trade. Transport companies have begun rerouting shipments through the Gulf Cooperation Council (GCC) region, utilizing the UN TIR system to bypass blocked maritime routes.

Furthermore, the digitalization of trade processes, including the implementation of eTIR, holds immense potential to streamline transit operations and enhance trade security and efficiency. By eliminating paper-based processes and facilitating intermodal transport, eTIR aims to optimize trade operations and minimize data duplication.

As global trade routes continue to evolve, investments in both physical infrastructure and digitalization efforts are essential to ensure the resilience and efficiency of these corridors. Harmonized development tools and digitalization initiatives will be crucial in supporting the growth of emerging trade routes and safeguarding global trade against future crises.

The pursuit of efficient and resilient global trade routes requires collaboration and coordination among stakeholders, with a focus on leveraging technological advancements to overcome challenges and seize opportunities in an ever-changing global landscape.

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Global Logistics, Global Trade Daily, International Trade, News, Ocean Ports

“Maryland Governor: Baltimore Port to Resume Full Function by May’s End”

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Maryland Governor Wes Moore has announced an ambitious plan to restore full functionality to Baltimore’s key shipping lane by the end of May. The announcement comes in the wake of a devastating incident in late March when a massive container ship collided with the Francis Scott Key Bridge, causing extensive damage and claiming the lives of six construction workers.

Speaking on CBS’ “Face the Nation,” Governor Moore affirmed the commitment to the accelerated timeline, emphasizing the round-the-clock efforts underway to meet the target. Despite the challenges posed by the scale of the damage, Moore described the proposed timeline as “realistic” and assured that every effort would be made to ensure its achievement.

The U.S. Army Corps of Engineers is working towards reopening the channel leading to the Port of Baltimore by the specified deadline, aligning with Governor Moore’s determination to expedite the recovery process.

In response to the tragedy, President Joe Biden has pledged federal support for the reconstruction efforts, reaffirming his commitment to assisting Maryland and Baltimore in overcoming the aftermath of the disaster. During a recent visit to the site of the bridge collapse, President Biden reiterated the government’s responsibility to hold those accountable for the incident while providing aid for the restoration and maintenance of the region’s vital business and commerce activities.

Governor Moore expressed solidarity with the affected families and communities, vowing to prioritize their needs throughout the recovery process. With a united effort from both state and federal authorities, plans are underway to not only reopen the shipping channel but also to commence the rebuilding of the bridge, symbolizing resilience and determination in the face of adversity.

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Global Logistics, Global Trade Daily, International Trade, Uncategorized

Insights into Trade Market Trends: An Investor’s Guide

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In the world of investing, a variety of factors persistently influence trends and impact investment choices. For investors navigating this landscape, understanding market dynamics is crucial. This article offers a thorough guide to understanding trade market trends, providing insights and strategies to assist investors in making well-informed decisions.

Understanding Trade Market Trends

Whether you’re a seasoned investor or just starting, it’s easy to be swayed by the allure of investment opportunities. A compelling sales pitch from a trader can entice you to invest significant funds into something you may not have thoroughly studied. This is why conducting due diligence is paramount.

It’s crucial to acknowledge that trade market trends are molded by a blend of macroeconomic and microeconomic forces. These encompass geopolitical events, economic indicators, technological advancements, and shifts in consumer behavior. Through meticulous analysis of these factors, investors can glean valuable insights into trade market trends and identify potentially profitable opportunities.

Geopolitical Events

Geopolitical events have a significant impact on trade markets, often leading to fluctuations in prices and volatility. Factors such as trade disputes, political instability, and military conflicts can disrupt supply chains, affect consumer sentiment, and create uncertainty in the market. 

For example, the ongoing trade tensions between the United States and China have had far-reaching implications for global trade, influencing investor confidence and market behavior. Another example is the political unrest in oil-producing regions, which can lead to disruptions in the supply of oil and affect global energy prices. 

Additionally, events such as Brexit or elections in major economies can introduce uncertainty and impact currency exchange rates, affecting the competitiveness of exports and imports. Geopolitical events are unpredictable and can have profound effects on trade markets, highlighting the importance of closely monitoring global developments and incorporating geopolitical risk analysis into investment strategies.

Economic Indicators

Economic indicators provide valuable insights into the health of an economy and its potential impact on trade markets. Key indicators such as GDP growth, inflation rates, unemployment figures, and consumer spending can help investors gauge the overall direction of the market. 

For instance, strong GDP growth and low unemployment rates are often associated with bullish market sentiment, while rising inflation and sluggish economic growth may signal a bearish outlook.

Technological Advancements

Technological advancements play a crucial role in shaping trade market trends, driving innovation, and transforming industries. From the rise of e-commerce and digital payments to advances in automation and artificial intelligence, technology is reshaping the way goods and services are produced, traded, and consumed. Investors who stay abreast of these developments can capitalize on emerging trends and position themselves for long-term growth.

Shifts in Consumer Behavior

Consumer behavior is constantly evolving, driven by changing demographics, social trends, and cultural preferences. Understanding these shifts is essential for investors seeking to capitalize on emerging opportunities in the market. For example, the growing demand for sustainable and ethically sourced products has led to a rise in ESG (Environmental, Social, and Governance) investing, with investors increasingly factoring in environmental and social considerations when making investment decisions.

Strategies for Navigating Trade Market Trends

Navigating trade market trends requires a strategic approach, informed by thorough research and analysis. Here are some strategies to help investors make the most of market opportunities:

Diversification

Diversifying your investment portfolio across different asset classes, industries, and geographical regions can help mitigate risk and maximize returns, especially in volatile market conditions. Several investment opportunities have gained considerable traction in recent years:

Real Estate

The appeal of real estate investment lies in its potential to generate passive income, build wealth through property appreciation, and diversify investment portfolios. However, like any investment, real estate comes with risks and requires careful due diligence, market analysis, and financial planning. Investors must consider risk management strategies, including insurance coverage. Rental property insurance is crucial for safeguarding against potential liabilities, damages, and unforeseen events.

Cryptocurrencies

The emergence of cryptocurrencies, such as Bitcoin and Ethereum, has created a new asset class that has attracted significant attention from investors. While cryptocurrencies are known for their volatility and speculative nature, they offer the potential for high returns and diversification benefits in a portfolio.

Venture Capital

Investing in startups and early-stage companies through venture capital funds has become increasingly popular among investors seeking high-risk, high-reward opportunities. Venture capital investments provide exposure to innovative technologies and disruptive business models, with the potential for substantial returns if successful.

Commodities

Investing in commodities such as gold, silver, oil, and agricultural products provides investors with exposure to physical assets that can serve as hedges against inflation and geopolitical risks. Commodities markets offer opportunities for both short-term speculation and long-term investment strategies.

Exchange-traded funds (ETFs)

ETFs have gained popularity as a cost-effective and efficient way to gain exposure to various asset classes, sectors, and geographic regions. ETFs track indices or baskets of assets and trade on stock exchanges, offering investors diversification benefits and liquidity.

Active Monitoring

Stay informed about market developments by actively monitoring news headlines, economic reports, and industry trends. This will enable investors to adapt their investment strategy quickly in response to changing market conditions. Additionally, investors should leverage advanced data analytics and technology tools to gain deeper insights into market dynamics and identify emerging trends. 

Risk Management

Implement risk management strategies, such as setting stop-loss orders and maintaining a balanced portfolio, to protect your investments from potential downside risks. Regularly review and adjust your risk management strategies in response to changing market conditions, economic outlooks, and personal financial goals. Remember that risk management is not about avoiding risk altogether but rather about understanding and managing risk effectively to achieve long-term investment objectives while preserving capital and minimizing potential losses.

Long-Term Perspective

Take a long-term perspective when investing in trade markets, focusing on fundamental factors such as economic growth, industry trends, and company performance rather than short-term market volatility or noise. It’s essential to maintain a disciplined approach and focus on the underlying fundamentals driving investment opportunities. While short-term fluctuations in prices may create temporary uncertainty, successful investors understand that market movements often do not reflect the true value of assets over the long term. 

Conclusion

Understanding trade market trends is essential for investors looking to navigate the complexities of the global economy and identify lucrative investment opportunities. While the investment landscape may be dynamic and unpredictable, disciplined investors who prioritize research, diversification, and patience can position themselves for long-term financial success amidst the ever-changing trade market trends.

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Global Logistics, Global Trade Daily, News, United states news

UPS to Replace FedEx as U.S. Postal Service’s Primary Air Cargo Provider

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In a significant development within the logistics industry, United Parcel Service (UPS) has announced its pivotal role as the primary air cargo provider for the United States Postal Service (USPS), effectively replacing its longstanding rival FedEx. The decision marks the culmination of FedEx’s more than two-decade partnership with USPS, signaling a strategic shift in the dynamics of air-based express deliveries.

USPS, a major customer for FedEx’s air-based Express segment, has undergone operational restructuring, transitioning from planes to more cost-effective truck-based transportation for letters and packages. While this move has led to a decline in payments to FedEx, UPS views this contract win as a substantial opportunity to bolster its market presence.

Faisal Hersi, an equity analyst at Edward Jones, notes that although FedEx’s revenue loss from the USPS contract is not immense, it will impact their business density. USPS constituted approximately 4% of FedEx Express’ annual revenue, highlighting the significance of this transition. However, Hersi suggests that this shift does not entirely disadvantage FedEx, as it allows for potential improvements in revenue consistency and operational focus.

UPS, on the other hand, anticipates significant benefits from the contract, particularly in terms of revenue and density enhancement. The financial terms of the agreement have not been disclosed by UPS, but the company has affirmed its significance.

Following the announcement, FedEx’s stock experienced a modest decline of nearly 2%, while UPS saw a 1% decrease. FedEx has also revealed plans to adapt its network to compensate for the loss of the lucrative USPS contract, which contributed nearly $2 billion annually to its business.

The inability of both parties to reach mutually beneficial terms for contract extension led to the cessation of their partnership. This decision could potentially impact around 300 pilots at FedEx, raising concerns among aviation unions about job security and corporate priorities.

Despite the contractual changes, USPS’s payments to FedEx have diminished in recent years, reflecting broader shifts in the agency’s operational strategies. As USPS undergoes reorganization to align with evolving market trends, including the rise of e-commerce giants like Amazon, there is a reduced reliance on air services for rapid deliveries.

In essence, UPS’s ascension as USPS’s primary air cargo provider signifies a significant realignment in the competitive landscape of express logistics, with implications for both companies and the broader industry.

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Global Logistics, Global Trade Daily

How Can Small Businesses Streamline Global Shipping Processes?

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The international shipping process has faced a number of disruptions over the past few years, with political issues affecting the ease of moving goods around the world. But, just because sending products abroad is a little trickier doesn’t mean it’s impossible. 

Small businesses can maintain streamlined global shipping and build a multi-national brand, using smart logistics to make the process simpler.

Optimize your global operations with these tips for efficient overseas deliveries.

Understanding the Difficulties

Before looking into how you optimize global shipping for small businesses, it’s a good idea to get to grips with current situations that are making it harder to ship overseas. 

This isn’t essential, but it can help you plan for disruption and better inform your customers of why they may experience later shipments. 

One of the major issues involves the Red Sea, where unrest is causing shipping companies to avoid the Suez Canal and take longer routes to their destination. This can lead to delays of up to 14 days.

There are also problems throughout the Panama Canal, impacting delivery speeds both into and out of the West Coast of the US and the West Coast of Latin America.

There are port strikes, rising fuel costs, and the ongoing Russia-Ukraine war, too, all of which are affecting shipping.

Though it’s a somewhat turbulent time for deliveries, it shouldn’t put small businesses off expanding their market to other countries. Instead, we recommend looking into ways you can streamline global shipments taking into consideration current events, making for smoother deliveries around the world.

Streamlining the International Shipping Process

Logistics are a key part of successful global deliveries and the better you plan the more efficient your shipments will be. Get started with these top tips.

Set-Up Global Payment Systems

If you’re branching out into the global market, it’s important to set up a payment system for international deliveries. For small businesses already using a card reader, check to see if your device is linked to an online account that accepts global digital payments. This will ensure all overseas transactions are tracked right alongside in-person payments for simple cash flow management.

It’s also vital that you charge your customers accurately for global delivery to avoid losing money. Before setting costs, ensure you’ve received quotes from suppliers and have a good grasp on import and export fees. There are tools available, too, that will automatically calculate shipping fees based on the customer’s location, making it easy to generate accurate fees. 

Get to Grips With International Shipping Laws

The international shipping process relies on rules and regulations, making it important that your small business keeps up with compliance. This can be time-consuming, but it’ll make your deliveries much smoother and more likely to reach the customer without an issue. 

Maintain a knowledge of the import rules for any countries you ship to. Most governments will have a detailed guide of their shipping laws, like the UK’s guidelines, which state the steps you need to take to avoid your goods being seized.

If you’re struggling to understand the rules, speak to a government official or consultant. They’ll be able to check over your plans and guide you on ways to improve compliance for efficient shipments. 

Automate Compliance, Documentation, and Reporting

There’s a lot of paperwork involved when shipping internationally. Luckily, though, your small business can take advantage of advanced digital tools to automate a lot of the laborious processes.

Automating software is available for compliance, making it easy to arrange the correct classifications for your products and adhere to global regulations. You can also use automated software to correctly fill out documentation and reports, inputting relevant information based on data already in your systems.

According to a survey by Deloitte, almost all global trade professionals were using a global trade management tool to make cross-border operations simpler. As more industries turn to digitization, it’s smart to switch paper-based operations to high-tech software to keep up with your competitors.

Find a Reliable Shipping Company

Choosing a trustworthy, credible shipping company to deliver your goods will make all the difference to your logistics. They’ll offer services that go beyond moving packages from A to B, including:

  • Updating you on delays and maintaining good communication
  • Handling your goods with care
  • Answering your questions regarding compliance and delivery
  • Offering great customer service
  • Dealing with lost parcels swiftly and effectively

Finding a shipping company that helps rather than hinders your efficiency will have numerous knock-on benefits for your business, too, from improving customer satisfaction to increasing loyalty among your audience. It’ll also impact your brand image, making it well worth the search.

Plan For Delays

A shipping company that currently reports no problems or delays is a red flag. These are tricky times for international freight, and some of your deliveries will likely be delayed on their route to your customers. But, by preparing in advance, you reduce the impact they’ll have on your business.

Smart logistics is proactive, and planning a schedule that avoids bad weather, political events, and seasonal delays is a great way to keep your shipments arriving on time. For example, if you’re shipping at Christmas, anticipate slower deliveries and higher demand by sending earlier.

Even with great logistics, though, you can still experience delays. This is why it’s important you have a good line of communication with your supplier. A credible company will update you on any changes to the estimated time of arrival (ETA) quickly, and provide an explanation as to why they’ve occurred. 

Once a delay is registered with your small business, inform the customers. Send an email updating them that their shipment will be delayed, along with any additional information, including the cause of the delay. Be sure to let them know of the new ETA, too, and offer an apology gift if necessary – like a discount on their next shop – to bolster your brand image.

Manage Customer Expectations

Marketing your global shipping as quick and reliable might be tempting, but if there are delays this will only end up hurting your credibility.

Rather than leading with the ideal situation, manage customer expectations by being honest. People would rather know their package is likely to be delayed, and a realistic delivery time is far better than the disappointment of a late shipment. Give your ETA some wiggle room and you’ll have happier, more loyal customers.

It’s also a good idea to include some information on your website about why global shipping can experience delays. This keeps your customers informed, shows you’re taking delivery logistics seriously, and builds credibility for your small business.

Enable Product Tracking

A great way to keep both your business and your customers up to date on global shipments is with tracking. Many international freight companies will offer an option for tracked deliveries, giving you real-time information on where the product is and when it’ll be delivered. 

This transparency improves the customer experience and reassures them that their delivery is on the way, with 90% of people actively wanting to track shipments. It’s likely to boost their view of your brand, too, as you prioritize their knowledge of the delivery over the potential savings of untracked deliveries.

Final Thoughts

The international shipping process isn’t always easy to navigate, with regulations, compliance, and delays making global business deliveries a lot of work. But, once you’ve got the right logistics in place, reaching customers around the world becomes a lot easier.

To stay on top of global shipping news or learn more about logistics, be sure to keep up with Global Trade.

Author Bio

Harvey Holloway is a digital marketing specialist, with a 1st class honours degree in Digital Media Design. Harvey is now looking to connect with leading publications and share his experience with a wider audience. Connect with Harvey on Twitter: @HarveyTweetsSEO.

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Global Logistics, Global Trade Daily, International Trade, News, Ocean Ports

Beware of Overhyping the Impact of Baltimore’s Bridge Collapse on Supply Chains

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The collapse of the Baltimore bridge is a tragedy. But the impact on supply chains at a global or even North American level won’t be huge – and overhyping it could risk losing public trust and fanning the flames of inflation. Let’s avoid crying wolf.

US Secretary of Transportation Pete Buttigieg’s comment last week was a bit much: “This will be a major and protracted impact to supply chains.” I doubt it.  

The collapse was shocking and the deaths of six construction workers a tragedy. Plus, the people of Baltimore will remember it with sadness forever. But the impact on supply chains at a global or even North American level won’t be huge.

What happened

The exact failure of the container ship Dali is still unknown, but video images show a loaded vessel losing its lights, and presumably power, briefly gushing black smoke from its funnels, getting its lights back, and then hitting the main bridge support. The bridge collapsed onto the bow of the ship in less than ten seconds.

What it means for supply chain: ports

The Port of Baltimore is closed, with 40+ vessels stuck inside the fallen bridge, and all inbound vessels being rerouted. It is not known how long clearing the passage will take. 

In terms of volume, Baltimore is not a vital US port. It ranks seventeenth in total tonnage, tenth in dry bulk tonnage, and fifteenth in TEU volume. Alternative east coast ports include New York, Savannah, and Virginia, all of which are larger.

Baltimore is, however, a key port for roll-on/roll-off shipments, including cars, trucks, and farm equipment. This will create problems for manufacturers, like Deere and Caterpillar, moving product overseas. These are finished goods, though, which means ripple effects seen in Europe when parts held up by Red Sea attacks forced some stoppages at Tesla and Volvo assembly plants won’t be an issue this time. Also, auto dealerships in the eastern US may wait longer for imported vehicles to arrive, but again, these are finished goods en route to lots full of inventory.

From this perspective, the impact will be minor compared to the post-Covid crisis that put supply chains on our collective radar.

What it means for supply chain: road

The accident also knocks out a major interstate highway for years, if not forever. That sounds terrible, but the bridge only carries 11 million vehicles per year compared to parallel north-south harbor tunnel routes, which, combined, carry almost 72 million vehicles each year. It is true that hazmat transport is prohibited in these tunnels, but the western loop of the Baltimore beltway is an option, adding about 15 miles to the Patapsco River crossing. Again, the impact on supply chains should be relatively minor.

Read also: Emergency Shipping Route Opens Following Baltimore Bridge Collapse

What it means for supply chain: infrastructure

As for the argument that our infrastructure is “crumbling” and supply chains are therefore “fragile,” the Key Bridge collapse is more symbolic than symptomatic. It was inspected in 2023, passing over a dozen specific metrics of structural integrity tests according to the US DOT’s National Bridge Elements Health Index. But it should be no surprise to anyone who saw the footage that the bridge couldn’t handle a direct hit from a container ship – our supply chain infrastructure does need more investment, especially our outdated seaports, but the collapse of this bridge is not proof of that idea. 

The good news: resilience and vigilance are working

Celebrated, but disproportionately to the initial hysteria about “snarled supply chains,” was the fact that the ship signaled distress and, within minutes, police had stopped traffic in both directions. Plus, technology-heavy logistics firms like project44 and Flexport, which track and help manage global shipping for big companies, are already rerouting shipments that were headed to Baltimore. 

Supply chain managers are currently handling problems in more important transportation choke points, including the Suez Canal and Panama Canal. More worrying still is the threat of a strike at all US East Coast ports. 

Transportation and logistics leaders have significantly improved resilience since the Covid crisis, meaning that most are already well into contingency plans in response to thisdisruption.

The bad news: news

Buttigieg isn’t crazy to warn of supply chain impacts arising from the Baltimore bridge tragedy, and televised news clearly can’t resist featuring the story. But the urge to overhype the supply chain angle risks losing public trust and fanning the flames of inflation.

Let’s not cry wolf.

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Global Logistics, Global Trade Daily, International Trade, News, Ocean Ports

Regulatory Confusion Surrounding Tugboats and the Francis Scott Key Bridge Collapse

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It has been just over one week since the disastrous Francis Scott Key Bridge collapse. Investigators are making progress along multiple fronts, and the role, or lack thereof, of tugboats is front and center. 

According to tracking data from marinetraffic.com, the Dali cargo ship was unaccompanied when it crashed into the Key Bridge on the morning of March 26. Tugboats operated by McAllister Towing and Transportation aided the Dali out of the dock for roughly 30 minutes before leaving the vessel at 1:09 a.m. At roughly 1:25 a.m., the ship began to veer right, departing the main channel and striking the bridge four minutes and 23 seconds later. 

It is common for tugboats to accompany vessels the size of the Dali out of the ship’s berth and then disengage once they reach the channel. Tugboat regulations vary, and ship owners pay for their services. In the case of the Key Bridge, tugboats peeling off before the vessel reaches the bridge are common. But the question with the Dali remains – had the tugboats escorted the ship to the bridge, what would the likelihood of a collision have been?

The Patapsco River is a vital national trade artery. The Cybersecurity and Infrastructure Security Agency (CISA) is tasked with protecting the US transportation systems sector from risks and threats. While CISA designates the Department of Transportation and the Department of Homeland Security as transportation co-sector risk management agencies, the issue of tugboat regulation and where responsibility lies remains unclear. 

The US Coast Guard is another entity responsible for risks and threats, as is the Joint Information Center (JIC), an investigative arm involving the US Customs and Border Patrol and US Immigration and Customs Enforcement employees. Yet, to date, CISA, the US Coast Guard, and the JIC have yet to publically accept regulatory responsibility as it relates to tugboat protocol. 

The Coast Guard can require tugboat escorts for certain vessels if they are deemed hazardous to navigation. The same applies in the event of precarious weather conditions. However, there appears to be an accountability gap where regulatory ownership is unclear.

The economic fallout from the collision is daunting. The Port of Baltimore generates roughly $3.3 billion a year, and 31,000 vehicles use the bridge daily. Had the tugboats been purposely called off, the captain’s log should reflect that.  

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Global Logistics, Global Trade Daily, International Trade, News, Ocean Carriers

Baltimore Bridge Collision Sparks Surge in Container Price

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Container Traders Anticipate Rise In Disruptions and increase in container prices in the Wake of Baltimore Bridge Collision

  • US ports prepare for rising traffic amid growing freight volumes.
  • xCPSI rises significantly from 26 to 61 points in one week, most supply chain professionals surveyed expect container price hikes in the coming weeks. 
  • Container traders in the US to prepare for potential disruptions, higher container prices and increased demand in the market

In the aftermath of the Baltimore bridge collision, supply chain professionals are anticipating price hikes, as indicated by a significant rise in sentiment for container price increases. A rebound of freight volumes into the US this year, coupled with the bridge incident and the ongoing challenges in the Red Sea as well as the Panama Canal is expected to strain key US ports in the short term. This is expected to lead to increased congestion, additional logistical and operational complexities, and short to midterm price increases.

The Container xChange’s Container Price Sentiment Index (xCPSI) unexpectedly surged from 26 to 61 points between March 18, 2024, and March 29, 2024. This marked increase suggests that the industry is anticipating container prices to increase in the coming weeks—while the suddenness of the index’s move highlights rising uncertainty in the market. 

“The sharp rise in sentiment could be linked to ongoing market volatility, the perceived emergency on the US East Coast due to the Baltimore collision, and the resulting sustained pressure on the market.” commented Christian Roeloffs, cofounder and CEO of Container xChange. 

We have received feedback from industry sources indicating an anticipated increase in container prices in the upcoming days/weeks, with projections ranging from 50-100 USD per TEU. This information suggests that customers looking to order new build units may encounter higher unit prices compared to previous weeks. One manufacturer, whom we used as a source in previous reports, anonymously shared this insight.

Additionally, another customer from Europe, who prefers to remain anonymous, is stocking up on various types of units in anticipation of future price hikes. 

Based on these insights, it appears that the market is poised for price increases in the coming weeks.

Update on the Baltimore Incident

As of 29th March 2024, the Key Bridge Response 2024 Unified Command* reported that 56 total containers loaded on the vessel contained hazardous materials, with 14 impacted. These 14 containers were assessed by an industrial hygienist for potential hazards. The Unified Command and Joint Information Center were established in Baltimore on 26th March 2024 to coordinate the response and disseminate information regarding the Francis Scott Key Bridge collapse.

In the meantime, The Captain of the Port (COTP) Baltimore has established a temporary alternate channel on the northeast side of the main channel in the vicinity of the Francis Scott Key Bridge for commercially essential vessels, according to the official statement by Mayor Brandon M. Scott, on Sunday, 31st March 2024. 

The temporary channel will be marked with government lighted aids to navigation and will have a controlling depth of 11 feet, a 264-foot horizontal clearance, and vertical clearance 96 feet. The Unified Command is working to establish a second, temporary alternate channel on the southwest side of the main channel. This second channel will allow for deeper draft vessels with an anticipated draft restriction of 15 to 16 feet.

Container vessels will need to adjust their routes to utilize this temporary channel, which has specific dimensions and markings to ensure safe passage. This temporary solution will enable commercially essential vessels, including container ships, to continue their operations with minimal disruption despite the bridge collapse.

Shippers to brace for cost escalations and mounting responsibilities

Furthermore, shippers whose routes include Baltimore are expected to face significant challenges in the coming days. One major issue is the increased shipping costs and associated expenses due to rerouting, which are expected to rise. Additionally, the responsibility for picking up cargo at diverted ports has been shifted to the shippers, as MSC and several other ocean carriers have informed their clients. This shift requires shippers to coordinate closely with freight forwarders, trucking companies, and other logistics providers to ensure safe and efficient transportation of the cargo to its final destination.

“In the short term, the bridge collapse will lead to localized disruptions in container availability and transportation. The incident has also led to increased delivery times and fuel costs which could indirectly impact container prices and leasing rates in the coming times.” added Roeloffs. 

US ports under pressure? 

Container xChange’s analysis of loaded imports at the top 10 ports in the US reveals a significant increase in container throughput compared to the previous year. This indicates improved port utilization and suggests a strong start to the year in terms of freight demand and activity.

Ports such as the Port of Long Beach, LA, and Port of Vancouver have shown significant increases in loaded inbound TEUs, indicating strong growth in maritime freight traffic.

Now with these diversions, it remains to be seen how well the ports will handle the rise in traffic. As more cargo gets diverted to these ports, we will see an increased throughput pressure on these ports. This could lead to higher congestion and longer wait times for vessels, trucks, and trains at the port. 

  Given this situation, we would expect container prices at these ports to rise in the month of April and beyond, depending on the intensity of the diversions and its aftermath.  

The aftermaths of the Baltimore collision are being felt nationwide. The New York Gov. Kathy Hochul and New Jersey Gov. Phil Murphy directed their ports Thursday, 28th March 2024, to accept additional cargo to alleviate supply chain pressures from the shutdown in Baltimore. Being the only water route into and out of the port, the shipping channel will be closed for weeks, at a minimum, and possibly for months. 

“By February 2024, most US ports experienced a resurgence in loaded cargo imports compared to the same period last year (Jan-Feb volumes in 2023). While volumes have rebounded and port operations have improved, concerns linger due to the ongoing Red Sea crisis and the recent Baltimore bridge collision, which is expected to cause months-long disruptions. This is likely to increase pressure on nearby ports with similar capabilities and may lead shippers and carriers to consider diverting entirely to the West Coast, potentially resulting in additional challenges or even closures for carriers,” commented Christian Roeloffs, co-founder, and CEO of Container xChange, an online global container logistics platform. 

“As we move forward, we anticipate increased wait times and processing fees at the ports where traffic is diverted in the US. The most striking impact, nonetheless, is on the regional supply chain in Baltimore, where the effects on life, the economy, and businesses are severe,” Roeloffs emphasized.