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Carrier Capacity Management Levels the Playing Field in a Carriers’ Market

Logistics Viewpoints

Carrier capacity tops the list of parcel shippers’ challenges. E-commerce order volume keeps climbing, straining carrier capacity with shippers sending more parcels outbound and receiving more returns inbound. Carrier capacity management strategies ease the crunch. Widening our view of carrier capacity management.

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Navigating Uncharted Waters: SMB Importers, 2024 and Red Sea Crisis Lessons

Freightos

Despite these efforts, to date the attacks continue, pushing most major carriers representing over 60% of global container capacity, to alter their routes. In other words, while demand was dropping, supply of capacity was increasing. In other words, this is a far cry from 2021 and its dramatic capacity shortage.

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September 26, 2023 Update

Freightos

Taken together with reports that utilization levels are over 90% to the West Coast, though closer to 80% to the East Coast, spot rates still above contract levels and likely above break-even mean carriers – for now – are managing transpac capacity successfully. Freightos Air Index data show Asia – N. Europe rates of $3.70/kg

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Just Jump

Supply Chain Shaman

The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. In my forty years of studying supply chain planning, the groups became larger, but with questionable results.

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Supply Chain Capacity Planning: How Communication Rifts Lead To Inefficiencies

ThroughPut

As a result, communication gaps have become almost the norm, putting a company’s ability for capacity planning into question. Mismatched capacity during surges makes it near impossible to meet demand. These companies operate in silos, often basing estimates and capacity planning on incomplete data. Correcting Communication Gaps.

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Embracing the Supply Chain as A Complex Non-linear System

Supply Chain Shaman

When compared to the peer group performance, smaller and regional players outperform larger companies. Intuitive Surgical, L’Oreal, and Sleep Number drove excellence through product and service innovation to outperform their peer groups. The supply chain has two important buffers–inventory and capacity. The reason?

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October 25, 2023 Update

Freightos

Demand continues to ease into the typical post-peak season pre-Lunar New Year lull, but transpacific rates may be leveling off at a new floor as carriers work to reduce capacity. Europe services alongside slow-steaming and blanked sailings in the hopes of bringing capacity in line with demand.

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