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Now of course, companies must map out the potential impacts of the Russia Ukraine war. Russia Attacks Ukraine. Russia shells Ukraine. Russia had massed some 150,000 troops along Ukraine’s borders, according to US estimates based on satellite imagery. Ukraine does not have the military might to stop the invasion.
Descartes Investor Contact Laurie McCauley (519) 746-2969 investor@descartes.com Cautionary Statement Regarding Forward-Looking Statements This release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relates to Descartes' expectations concerning future revenues and earnings, (..)
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. Build in-market sourcing. Rationalize global strategies to focus on building markets based on in-market sourcing. Growing tensions between China and trading partners.
But SHIFEX, the freight forwarder rate index, recently recorded the lowest ocean freight rate between China and the port of Long Beach in 24 months —a rate of $3,500 to move a 40-foot container. This is an 80% drop year on year drop.
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. 28% of global retailers have tried to find alternative sourcing options due to supply chain issues (RetailNext, 2020).
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.
In these times of global turmoil, there are five (5) important megatrends shaping supply chain innovations in the coming years, namely in e-fulfillment, sourcing, food and agriculture, labour intensive operations, and halal supply chain management. From global to local and regional sourcing. Marco Tieman – CEO, LBB International.
His mission is to help craft the firm’s growth strategy while assisting with deal sourcing, capital raising, and the creation of value within portfolio companies. John also shared his logistics industry outlook which includes insights on the truckload, LTL, and freight brokerage markets. market share could grow to have 3.0%
China trade tensions, Covid-19 measures and the Russia-Ukraine crisis. For instance, Maersk and CMA CGM are building end-to-end logistics capability chains, while over USD 6bn was invested by VC investors in freight marketplaces alone through 2019. Source: US Census Bureau. But what will really happen?
The COVID-19 pandemic, Brexit in Europe, and the Russian invasion of Ukraine have further exacerbated current food chain problems, but a solid supply chain should be equipped to withstand this pressure to a certain extent.
In this, the first of our supply chain news posts, you’ll find updates on the following current stories in global supply chain and logistics operations: The Ukraine war and its impact on global supply chains. The grain blockaded in Ukraine. Ukraine War and its Supply Chain Impact. A growing global warehouse capacity crunch.
As we watch Russia’s invasion of Ukraine unfold, the real cost of this war is plain: lost lives, families that are forever altered, and destroyed communities. Two top European shippers — Maersk and DSV — have warned that freight costs will likely remain high well into 2022, adding to the global supply chain chaos.
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. In many instances, alternative sources are limited.
They stocked up again after Russia’s invasion of Ukraine pushed up the price of raw materials such as energy and wheat. The Port of Kahului is fully operational, and interisland freight and transport company Young Brothers noted in an Aug. But the process has been much slower than expected and may drag into next year.
The three colossal ‘Black Swan’ events of recent years – COVID-19, the Suez Canal closure and the ongoing crisis in Ukraine – are being supplemented with numerous economic challenges. Ever increasing costs in Asia, geopolitical tensions and trade tariffs are further de-stabilising supply chains.
Then came Russia’s invasion of Ukraine. Between them, Ukraine and Russia account for approximately one-third of global wheat production. This means supply chain leaders have had to shift from using trains back to using ocean freight and getting goods to market takes longer.
The further disruption caused by Russia’s invasion of Ukraine could cause major disruptions to the global supply chain and impact South Africa. Shorter supply chains with more local sourcing if possible are now becoming preferable because the more links in the chain, the more potential for a weak link. The supply chain of the future.
Continued fallout, including transport congestion, limited air freight and rail freight transportation in the Asia-Europe lanes, because of the Russia/Ukraine conflict. QAD Auctions tailors auction designs to the specific negotiation and award strategies and improves sourcing results. Potential U.S.
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.
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.
As the pandemic eased, ports suffered bottlenecks, natural disasters disrupted freight movement, railways suffered congestion, and new legislation further complicated the movement of goods. And the world has now been rocked by the Russian invasion of Ukraine, altering global supply chains forever. Can the United States be far behind?
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. In one reported dimension, cited from sourced industry forecasting data, automakers and their battery suppliers are planning to install 5.8
Poland’s bordering countries include Belarus, Czech Republic, Germany, Lithuania, Russia, Slovakia and Ukraine. With 87 airports that have paved runways, Poland’s air infrastructure is more than adequate for freight shipments. Located east of Germany in Central Europe, Poland is about 312,685 sq. km, about twice the size of the U.S.
Outsourcing Sourcing! As the Russian invasion of Ukraine has shown, geopolitical tensions can rapidly shift and severely impede international supply chains. Air freight shipping is significantly more expensive than oceanic freight, but it takes far less time. Subscribe Here! Email Address. 5 Lessons from Around the Globe!
Often, the general public’s view of freight transportation is similar. The Bureau of Transportation Statistics reported that, “Freight shipped across the U.S. With so much money moving across the country and globe, supply chain professionals must prioritize a proficient freight invoice and payment processing system. .
Even companies without a direct supplier connection in Russia or Ukraine will experience debilitating disruption across industries from energy to agriculture. Revisit your sourcing arrangements with suppliers, especially with a view to geographic location. That system has influenced production systems across the globe.
There are mixed views in business and supply chain management settings as to whether customers would be willing to both maintain brand loyalty or pay extra for products that are deemed to be sourced and produced from sustainable sources and social responsibility driven labor practices.
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.
The factors driving parcel carrier fuel surcharges include: E-commerce growth – When the pandemic brought home millions of Americans in late 2019 and early 2020, e-commerce became the source for every real need. Russia-Ukraine war – The cost of every gallon of fuel covers crude oil, refining, distributing, marketing, and taxes.
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
… Authorities have now imposed restrictions on Beijing, while the central Chinese city of Zhengzhou, a gateway for air freight, also limited the movement of people in May.” The latest China lockdowns combined with the Russia-Ukraine war is too heavy a burden. ”[5] Roger W. Ferguson Jr.
10 questions about Freight Spend Management. There are numerous ways a shipper can reduce freight spend. And freight costs are continuing to rise, pushed upward by factors such as globalized distribution and unpredictable fuel prices. This is an important aspect of managing freight spend. Tajikistan. Timor-leste.
More recently, the war in Ukraine and the sanctions on Russia have placed limitations on both the overland rail and air freight routes from China to Europe and increased the strain on Northern European ports that were already congested before the war. Robust supplier management strategy.
While the sources of rising fuel costs are complex and interconnected, a few primary reasons rise to the top. As the demand rapidly rose at the beginning of 2022, the Russia-Ukraine war stripped the global market of available crude oil sources. What’s Keeping Fuel Higher? of total sales at an estimated $1,747.3 billion total.
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.
One of the biggest contributors to inflation is the increase of oil and gas prices, which will remain high as long as the conflict in the Ukraine rages. Some of the supply constraints are also due to the destruction of key infrastructure in the Ukraine for shipping of these commodities. War in Ukraine turns into global conflict.
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. In turn, the supply chain will need to grow more agile and look for sourcing raw materials from other countries and regions.
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. Source: project44 Monthly report.
organizations are increasingly looking to redesign their network, reconfigure their global and regional supply chain flows, and source critical components from local suppliers as opposed to just purely relying on an offshoring-based model. Based on the disruptive events that we are seeing – from tariffs, NAFTA, Brexit, COVID-19, etc.
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. ”.
In President Biden’s press conference , he shared that the two primary causes of this enormous strategic oil reserves release were COVID-19 and the Russia-Ukraine conflict. Unify all data within a single source of truth. Shipping companies should unify their data by integrating every related source into a central system.
Shippers Need to Aggregate Their Data Sources Into a Single Source of Truth. A second common thread throughout MODEX 2022 was the necessity to collect data from all sources into a single reference point. More Complexity Puts Added Pressure on Shippers for Tech-Rich Execution and Ongoing Analysis.
The concept of supply chain diversification involves reducing reliance on a single supply source and tapping into different market opportunities and technologies to enhance competitiveness. Recent political, health, or environmental events have caused supply disruptions due to a high dependence on a single supplier or regional source.
Expertise: Sourcing, Supply Chain Analysis, Logistics & Transportation, Logistics Management Consulting, Freight (Maritime, Land, or Air), Logistics Technology Solutions. She is based in Ukraine & Portugal. Hire any of them as your supply chain consultant and see the difference! Connect Now!
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