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What’s going on with global supply chains: A primer for the casual consumer

Freightos

A third of all cargo is carried in passenger planes. So to meet capacity, airlines started to convert passenger planes into cargo planes at scale. When trying to book a specific slot on a container ship (yes, the ones that can handle the equivalent of 20,000 containers), prices have exceeded $16,000 (!). Credit: Lufthansa ).

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High freight costs for importers means higher price tags for consumers

Freightos

So in January, as players across the global freight industry were discussing how to navigate higher freight rates, delays, and capacity shortages , Freightos.com, a global freight booking platform and part of the Freightos Group, reached out to our customers to find out how logistics disruptions are impacting them. Start shipping now.

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The Impending Ocean Carrier War on Last Mile Fulfillment

Freightos

On the horizontal carrier integration front, Maersk has doubled down on its extension from ocean consolidation (Hamburg Sud, 2017) to air cargo, increasing Maersk Air by 33% with three leased cargo planes and two new Boeing purchases. Image via StarAir.dk). Behind the Maersk shift. One goal, two different motivations.

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COVID’s Supply Chain Ripples: the SME Business Perspective

Freightos

It really got tricky when we hadover thousands of unitsin production and were starting to book freight and suddenly realized that the cost of freight was almost 4 or 5X what we had budgeted. Here’s four to start with: Shifting focus: In 2021, the key problem to solve was sourcing and supply chain management. What’s the bullwhip effect?

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Coronavirus and the Trade War: A Perfect Storm Argument for SMB Supply Chain Diversification

Freightos

The digitization of commerce created a path for giants like Amazon and Alibaba to dominate their respective storefront/fulfillment and sourcing roles in the market. US importers are more dependent on Chinese sourcing than ever. The (Digital) Rise of SMBs. The Lesson: Diversify . And that’s what the data is showing.

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Panama Canal Drought: Lower Water Levels, Higher Supply Chain Risk

Resilinc

Due to the drought, the Panama Canal Authority (ACP) updated booking conditions for ships for the Panamax locks (the older locks of the Panama Canal used by smaller ships). Weight limits have also been adjusted, forcing some ships to unload and transport cargo to the other side of the canal via train—increasing transportation costs.

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The Green Corridor: Looking for the Green Lining

The Logistics & Supply Chain Management Society

Now if only other nations could take a couple pages from their play book. That said many countries are struggling to accommodate the new sources of power into grids designed for fossil fuel power generation. Green Power Moving away from a power grid fueled by fossil fuel is happening. I for one will be looking out for that.