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Over four-hundred days of war in Ukraine. As consumer spending fell, the days of escalating ocean freight and extreme shipping variability eased this year. In the face of variability, this is two-to-six weeks too long to make allocation or procurement decisions. Growing tensions between China and trading partners.
Russia-Ukraine War. Could the Russia-Ukraine War turn nuclear? Slowing Economic Growth. Did I miss anything? It’s been an eventful first quarter of 2022, and the outlook for the rest of the year remains risky and uncertain (just like it’s been the past two years). I pray that it doesn’t. Will a major cyberattack.
In this article, Eytan Buchman, Freightos’ CMO, discusses the importance of data and context in global freight and logistics. The future of global freight data lies in real-time information, contextual insights, and aggregated data that can help companies make better decisions and adapt to a rapidly changing industry.
This shortage is the culmination of various ongoing issues – geopolitical tensions related to the Russia-Ukraine war, the rapid shift in consumer buying behavior and container freight availability. This article is from Chetan Chaudhari at GEP and examines the ongoing aluminum can shortage.
How the War in Ukraine is Impacting the Supply Chain and Raw Material Prices. Thanks to container prices rising as much as 600%, money that could be used for advertising went to freight companies instead. How the War in Ukraine is Impacting the Supply Chain and Raw Material Prices. Covid-19’s Impact on the Supply Chain Crisis.
With the crisis in Ukraine and sanctions imposed on the Russian Federation, fuel and energy prices are now soaring. The Freightos Baltic Index Global Container Freight Index shows the cost of shipping freight remains hugely elevated – more than double the price a year earlier. GLOBAL CRISES DRIVE PRICES SKY-HIGH.
Sourcing raw materials from Asia, coordinating freight with European logistics providers, or navigating distribution networks in the Americas cross-border operations rely on effective communication to make them happen. Procurement staff must send alternate sourcing orders. Logistics coordinators will need to reroute deliveries.
Earlier this year, before Russia invaded Ukraine and COVID-19 reemerged in China, it seemed we would finally enjoy relief from supply chain interruptions and price increases. With the war in Ukraine inflicting more injury to an already weak global supply chain, you can expect high prices, product scarcity, and project delays through 2022.
The further disruption caused by Russia’s invasion of Ukraine could cause major disruptions to the global supply chain and impact South Africa. Global supply chains were starting to recover from two years of upheaval caused by the pandemic when the military crisis hit. The supply chain of the future.
There are a variety of ongoing disruptions caused by Russia’s invasion of Ukraine and the resulting economic Russian sanctions coming from other countries. Sanctions make these elements harder to procure elsewhere while preventing many companies from using existing Russian sources. Subscribe to Supply Chain Game Changer. Raw materials.
Continued fallout, including transport congestion, limited air freight and rail freight transportation in the Asia-Europe lanes, because of the Russia/Ukraine conflict. QAD SRM delivers the tools to improve real-time communication and procurement processes and to counteract supply risks. Potential U.S.
The starting point for all conversations about defence procurement must be that Western Europe faces its greatest security threat since the Cold War. Ukraine shares a border with no less than four NATO allies, and with rhetoric rising from Moscow about tactical nuclear strikes, there is the potential for a dangerous escalation.
In this Supply Chain Matters March 23 rd edition of our COVID-19 and Ukraine Conflict News Capsule, we provide updates to ongoing industry supply chain developments and disruptions of concern to our reading audience. Included in this update are the following updates: Canadian Pacific Railway Work Stoppage Eased. Canadian and U.S.
It is becoming clearer that supply chain procurement and logistics teams elected to route import shipments thru either U.S. Similarly, WSJ separately reported that trucking freight operators now indicate that the traditional peak shipping season is crumbling as overstocked retailers cancel any new inventory orders. All rights reserved.
Even companies without a direct supplier connection in Russia or Ukraine will experience debilitating disruption across industries from energy to agriculture. Put your logistics, supply chain and procurement teams on high alert for computer viruses and increased phishing attempts. Develop business continuity plans with your suppliers.
The threat of sudden lockdowns continues to loom over procurement teams. Supply chains thrive on predictability, yet China’s continued zero-Covid policy is causing uncertainty and taking an economic toll at a time when we are learning to cope with other significant challenges, such as the fallout of the Russia – Ukraine conflict.
billion, primarily driven by ocean revenue increases but included a negative impact of $718 million from the Russia/Ukraine conflict and losses related to terminals related to these areas. based Pilot Freight Services for a reported 47.1 Quarterly revenue increases for specific business units included a $6.9 EBIT increased $7.5
It has always been essential to have visibility into freight spending. Freight audit & payment (FAP) providers have long paved the way to gaining this visibility by looking at shipping invoices and breaking down freight spend. What Is Freight or Transportation Spend Management?
Yes, COVID caused many issues, but other factors, including geopolitical changes, the war in Ukraine, weather events, peak season , and economic instability, have altered the fabric of logistics. Warehouse and distribution managers and procurement professionals will need to start thinking about managing the customer experience better.
Our stated takeaway from for the Q1 data was that indices were no longer reflecting the optimism indicated in February, and instead that of growing headwinds and added geopolitical concerns related to effects of the Ukraine conflict and China’s potential economic stumble as a result of a strict COVID-19 isolation policy. The latest U.S.
Cargo planes could not fly out of or into Russia or Ukraine. Likewise, ships could not sail into or out of Russia and Ukraine. That exacerbated food shortages with Russia and Ukraine among the top five grain exporters. As mentioned above, economic sanctions led to major impacts on Ukraine and Russia. of all wheat.
Now the New York Minute is reflective of Russia waging war in Ukraine , precipitating a significant war footing on the European continent, the most significant since World War Two , including a widescale refugee crisis as Ukrainian citizens are forced to flee their homeland. Everything is a little out of sync right now. ”.
Fast moving forward into 2022 ongoing widespread congestions in ports, container shortages, and volatile shifts in demand for goods from Western economies causing freight rates to skyrocket ended up adding extreme pressure on the main cost drivers of the ocean side of the supply chains and beyond. Supply Chain KPI Dashboard.
Expertise: Sourcing, Supply Chain Analysis, Logistics & Transportation, Logistics Management Consulting, Freight (Maritime, Land, or Air), Logistics Technology Solutions. He can lead your company through the complex procuretech industry because of his specialization on procurement technology.
Over the last 2 years, Supply Chain teams have been struggling to procure and manufacture enough inventory. Global supply constraints have come from (1) supply-side disruptions like China’s Zero-COVID policy and the Russia / Ukraine conflict and (2) from demand pressure as federal stimulus flooded the market with extra cash in 2020 and 2021.
Some industries went straight from the frying pan to the fire, so to speak; as soon as the COVID problem had mostly cleared up, the Russian invasion of Ukraine disrupted supply chains for resources like food products and oil and gas. Both Ukraine and Russia are among the most important producers of the abovementioned commodities in the world.
Does today’s rise in category complexity increase the delays, complications, and headaches in your procurement operations? Complexity has become a significant concern in the world of procurement. Direct procurement can be extremely complex and often unpredictable. Successful companies make this look easy.
This, along with container shortages, drove up ocean freight spot rates and caused sporadic export delays. 2022 ushered in a year of higher fuel prices attributed to the Russian invasion of Ukraine in March, declines in spot rates, and higher inventory levels for many retailers. How is Inflation affecting freight rates?
Part of this decrease may be attributed to temporary declining freight volumes as regions in Asia continue to deal with COVID-19 related suspensions of production, shipping or transport operations. The authors noted that it was unclear as to whether the conflict in Ukraine and associated disruptions to ocean shipping made for the difference.
Reportedly, concerns surrounding inflation and the conflict in Ukraine further clouded the outlook for manufacturers. The impacts of the Ukraine-Russia conflict and severe sanctions on Russia impacting key commodities and energy markets are yet to play out in qualitative and quantitative dimensions.
The Wall Street Journal reported this week (Paid subscription or metered view) that ocean container freight rates related to the most active global shipping lanes continue to decline amid what is traditionally considered the peak shipping period leading up to the holiday fulfillment season in the November-December period.
What’s more, increasingly frequent disruptions from the COVID-19 pandemic to semiconductor shortages, the Suez Canal crisis, and the Ukraine war have bared the fragility of supply chains around the world. However, sending freight by air rather than rail, road, or sea results in a high impact on carbon emissions.
The ongoing Ukraine–Russia conflict has caused turmoil in significant parts of the global food chain, and in fact, Ukraine is a major exporter of barley (30% of global totals), wheat (25%), and sunflower oil (60%). Further, Ukraine supplies more than one-half of the world’s neon gas necessary for printing circuits on computer chips.
As people in the Ukraine and around the world anxiously monitor the threat of war with Russia, supply chain managers must take stock of the risks to their supply chains and focus on potential mitigation measures. and European firms have tier 1, 2 or 3 suppliers in Russia or the Ukraine.
Even as the pandemic eased down and the global supply chain started to pick back up, other events such as the war in Ukraine began to cause other types of issues. Make sure you have an accurate idea of lead times in relation to your production and procurement processes.
2023 Prediction Three: More Direct Control in Strategic or Tactical Multi-tiered Direct Materials Sourcing will Continue to be a Prominent Element of Business Strategy for Chief Supply Chain or Chief Procurement Officer Efforts. . A published Future of Freight study sponsored by Deloitte in September 2022 indicated that U.S.
” He also provided some fascinating views on the Russia-Ukraine war. However, this could lead to reduced bus transit, reduced rail freight, and fewer fixed routes. What are the implications of not just focusing on cost anymore in global supply chains? What if instead we focused on FLOW?”
Of added interest has been Boeing ’s ability to crank out 44 wide body air freight aircraft in 2022 in response to prior global supply chain wide material and vaccine shortages. along with an uncertain outlook regarding the ongoing hostilities between Russia and Ukraine loom for the industry heading into 2023.
This week’s address was overshadowed by the newly occurring and deeply concerning Russia-Ukraine conflict, and the looming risk of a land war occurring once again on the European continent. The President therefore began his address specifically on the building crisis, the implications of conflict on the free world, and the actions that U.S.
Low water levels hamper shipping in Germany's Rhine River as heat wave continues A heat wave in western Europe has lowered water levels on Germany's Rhine River, hampering shipping and raising freight costs for cargo owners due to additional surcharges as their vessels were unable to sail fully loaded, commodity traders said on Monday.
Denmark gets Europe's Ukraine export guarantee scheme underway Denmark has become the first country to formally join the European Union's new 300 million euro Ukraine export credit guarantee facility which supports European companies doing business with Ukrainian counterparts. airlines warned on Tuesday.
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