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Its long-established logistics model, built around rail and RoRo (Roll-on/Roll-off) shipping, could no longer keep pace. Capacity shortages, service unreliability, and inventory congestion threatened to disrupt VWs production flow and delivery commitments to U.S. and Canadian dealerships.
The long and unpredictable peak shipping season continues to challenge supply chains. A 2021 Peak Shipping Season survey conducted by Edelman Intelligence found hiring to be a strong concern among supply chain decision makers with 90% having a strong need to increase hiring to account for peak season and beyond. Higher freight volumes.
Retailers also took steps to contain costs and preserve margins as they reoriented toward e-commerce like never before, including putting solutions in place to more effectively navigate carrier capacity caps and improve the visibility, accessibility, and mobility of inventory. More to give the organization. Meet the basic needs.
. • Payload Limitations: Drones have low payload capacities, restricting them to lightweight packages, while autonomous vehicles can transport larger loads. Each technology is therefore confined to a particular subset of logistics needs due to its payload capacity.
The Ryan Air CEO Michael O’Leary said in his 30 years in the industry he has never seen capacity constraints to the current extent. Do You Think Fedex Ships Live Pandas? Its latest biofuel trial and the order of a dozen 13,000 teu methanol dual-fuel container ships in January 2024 with ships scheduled for delivery from 2027.
More Resources Home Ahead of the Curve: How Digitalization Helped Air Cargo Amidst Red Sea Shipping Diversions Joyce Tai April 2, 2024 If there’s one lingering lesson from the supply chain crisis of COVID, it’s that digitization can help organizations navigate crises…but that digitization can’t be put in place DURING that same crisis.
billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions. million+ transactions annually This network effect means better visibility, more competitive rates, and unparalleled connectivity across the global logistics landscape.
If your business depends on freight shipping, you've likely felt the effects of a world that seems to change overnight. From port congestion and fuel surcharges to weather events and labor shortages, the threats to your shipping network are real and growing. Even businesses that ship only within U.S. The good news?
Exploring alternative shipping routes via Gulf Coast ports to bypass land border congestion. Fast-tracking partnerships with alternative logistics providers to bypass Chinese ports and avoid tariffed shipping routes. Cold storage and processing facilities are increasing inventory capacity, anticipating prolonged trade disputes.
Understanding what consumers want With billions of dollars of orders poised to test the capacity of retailers’ shipping operations this peak season, minimizing fulfillment uncertainty and transforming customer confidence through optimized last mile delivery becomes priority one.
Prices to the East Coast climbed 60% to $6,410/FEU with the latest daily rates above $7,000/FEU, with rates on both lanes about even with levels a year ago when Red Sea-driven capacity restraints combined with an early peak season rush ahead of the ILA port strike threat to push prices up.
System Integration and Data Visibility Orchestration requires connecting warehouse systems, transportation platforms, and ERP data so that status updates, inventory levels, and shipping exceptions are visible without needing to log in to separate systems. This doesnt eliminate those systems, it organizes the data they produce.
Companies now must make strategic decisions regarding pricing, shipping, supply chains and overall logistics. Below, we provide nine tips to optimize your shipping and tell you how a third-party logistics (3PL) provider can help you during these difficult times.
The mid-high shipping rate on the Far East to North Europe route has also seen an upward trend, rising by 32% since the end of May and currently priced at $2,704 per FEU. With capacity returning to the trans-Pacific route, the frantic rush of shipments is expected to subside. Find more articles by Stuart Chirls here.
But with alternative routes and plenty of excess capacity available, operations should continue reasonably well, and freight rates are unlikely to spike to extreme highs. 18th, 2023, Source: Marinetraffic Since mid-November multiple ships have been attacked in the Red Sea by Houthi forces in Yemen.
Parcel shipping is expensive. Despite that, customers expect low cost — ideally free — shipping and rapid delivery. As a result, many are leveraging multi carrier shipping software to reduce costs without reducing customer service. As a result, you can determine whether or not to always use the lowest shipping rate.
Shipping packaging materials comes with its own set of challenges that can disrupt operations and impact profitability. Negotiate Carrier Contracts : Lock in stable shipping rates with carriers to mitigate unexpected cost spikes. This unpredictability can create capacity challenges and increase transportation costs.
billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions. million+ transactions annually This network effect means better visibility, more competitive rates, and unparalleled connectivity across the global logistics landscape.
While COVID-19 had a significant impact on the current state of the LTL market, capacity was already constrained prior to the pandemic as carriers right-sized their fleets and were challenged with the ongoing driver shortage. Port backlogs, cargo limitations on container ships, and a lack of available equipment and port facility staffing.
For example, if a promotion plan has not been correctly modeled for the warehouse, there may not be enough storage capacity, dock doors, or workers to execute the days work. Cubing out is preferable; companies dont like to ship air. The same disconnect can happen in the warehouse and in transportation.
The sales team can go have those conversations, with real-time lead times and even the factory the product will ship from, with customers. It might highlight logistics jams, manufacturing capacity, quality issues, or procurement cost trends. This allowed us to plan our manufacturing capacity more effectively.
Tightened Capacity. Labor shortages will have a lasting effect, effectively reducing capacity for carriers and terminals. Fuel surcharges simply reflect rising fuel costs, but accessorials can quickly raise LTL shipping costs as carriers levy fees for additional services like liftgate use and delivery/pickup appointments.
Simplify, Synchronize, Succeed Gain consolidated visibility into rates, capacity, and market shifts. The Red Sea crisis demonstrated how quickly shipping routes can be compromised, forcing immediate rerouting decisions. When rates are changing daily and capacity is fluctuating, this approach is simply unsustainable.
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.
As capacity continues to fall short and lead to lost efficiencies, shippers can benefit from leveraging the regional networks of an MTS provider to strengthens their supply chain. Capacity limitations and determining where capacity is and what limits may exist. The Challenges of Only Relying on National Networks. Learn More.
When you track transportation metrics and KPIs like transit time, on-time pickups, and percent of truckload capacity utilized across your carrier partners, you can identify trends and opportunities for streamlined OTR transportation management. Forecast Demand?with?Analytics. a shipment?doesn’t OTR transportation optimization?is
A recent analysis suggests that some spending growth is on the types of goods , like video games, that don’t ship by ocean container – another factor in the relative disconnect between spending and freight. Rates, and likely volumes too, are falling despite US consumer spending on goods remaining steady in August. Europe rates of $3.70/kg
The Container Payment Portal will serve as the primary interface for Hapag-Lloyd customers to manage compliance with the Ocean Shipping Reform Act of 2022 (OSRA) and facilitate the payment of import line demurrage charges for U.S. million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies.
We welcome Shippers to join Emily Stausbll, Xeneta Senior Shipping Analyst, for a roundtable discussion to unpack: Global market insights and trends for Ocean Freight Impact of the new alliances on capacity, schedule reliability and freight Geopolitics and other on-going global events and their impact on supply chain including how new U.S.
Not only were factories shut down, but ocean ports were congested, vessels sat offshore for weeks waiting to unload, capacity on ships and planes. It was a scary time for the entire world but incredibly overwhelming for those working hard to keep global supply chains running.
When it comes to ocean freight, it can be easy to observe the competitive nature of shipping rates, service loops and trade lanes and label it market share dog-eat-dog. Shipping alliances are an essential facet of international logistics, promoting efficiency in a complex global trade environment. Astro-logistics!
Global shipping is national news with most stories covering the symptoms. Since 1990, the size of ships increased 3X, but the design of the west coast ports remained largely unchanged. meters, to accommodate ships with 20 rows of containers) and 15.2 meters, to accommodate ships with 20 rows of containers) and 15.2
Companies of all sizes engage with 3PLs and 4PLs to ensure access to technology, capacity and strategic insights. During the pandemic, companies found it difficult to access and manage capacity on their own. Pricing may vary significantly based on carriers, lanes and capacity constraints. 3PL vs. 4PL. Multi-modal Expertise.
Geopolitical tensions, rising fuel costs, driver shortages, blocked shipping lanes and frequent supply chain disruptions make it tough to achieve reliable on-time delivery amid this complexity. So what are the top reasons for shipping delays? There is good news, though.
A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. Container Shipping There have been recent reports publicizing the rapid decline in container shipping rates.
Pricing may vary significantly based on carriers and lanes and capacity constraints. Build relationships with your 3PL for capacity and alternative shipping solutions. A savvy 3PL can tap their relationships to uncover capacity and alternative solutions that would otherwise be unavailable to shippers.
We didn’t know how long COVID-19-related shutdowns, and the ensuing port congestion and crunch on carrier capacity, would last. It now seems that port congestion and capacity issues will persist throughout the year. Do you know, at a glance, how many component parts were shipped and if they will arrive in time?
But cross-border trade is an important part of the global economy and much of this trade is in physical goods that must be stored, shipped, transported, and eventually consumed. Perhaps most notable is the substantial decline in container shipping rates.
Then, strategically position goods according to their demand frequency, placing high-turnover items near shipping areas for quick access. Utilize color-coded zones for different shipping priorities, helping workers identify urgent shipments at a glance. Start by analyzing your workflow to identify bottlenecks and inefficiencies.
Amazon reported $2 billion in incremental costs from having excess fulfillment and transportation capacity. Meanwhile, their CFO reports that inflationary pressures – increased fuel costs, increased costs of international shipping, etc. Amazon made a mistake, but not a critical one; the capacity will be needed.
Target is increasing its use of larger delivery vehicles in markets served by its sortation centers, improving capacity and creating more efficient routes, executive vice president and COO John Mulligan said on an earnings call last week. Target has been testing high-capacity van routes at Dallas and Minneapolis sortation centers.
With mounting last mile costs, this early May blog post sought to provide shippers with clarity around the growing demand for final mile logistics and keeping costs under control with proactive shipping strategies. #5. Peak Shipping Season Update: What’s Driving Change in the Industry? The State of the Trucking Market in 2021.
Three months into 2025, we have seen a barrage of on-again, off-again tariffs that have supply chain and logistics teams reeling, as they must rethink everything from next weeks shipping route to their foundational network models. The Ukraine-Russia conflict is ongoing.
In the early morning hours of April 26, at approximately 1:35am, a cargo ship leaving Baltimore Harbor struck the Francis Scott Key Bridge, triggering a catastrophic collapse of the 1.6-mile-long The end result of the loss of propulsion was the ship crashing into the bridge. mile-long span. An estimated 11.5
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