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Global shipping is national news with most stories covering the symptoms. Value networks do not interoperate and the business leader trying to track shipments must manually sync multiple data sources to get to answers. Since 1990, the size of ships increased 3X, but the design of the west coast ports remained largely unchanged.
Mr. Bailey has worked most of his career at VF – as an industrial engineer in facilities, in strategic sourcing, running offshore operations, and now as the person in charge of the company’s entire supply chain. VFC’s supply chain sourced over 410 million units of apparel, footwear, and accessories in their last fiscal year.
It’s good to see these companies recognizing the impact of climate change, and changing their policies, sourcing, and manufacturing practices to reduce emissions. Agriculture, oil and gas operations are major sources of methane emissions. Clearing land and cutting down forests can also release carbon dioxide.
Full-to-bursting warehouses means fewer orders for manufacturers, which translates into lower levels of business activity and, ultimately, weaker growth. The massive pileup is a result of water conservation measures the Panama Canal Authority deployed in late July due to drought. And now on to this week’s logistics news. 11 release.
Global shipping is national news with most stories covering the symptoms. Returning containers is an ongoing issue resulting in some manufacturers investigating a return to break-bulk shipping (container free). Since 1990, the size of ships increased 3X, but the design of the west coast ports remained largely unchanged.
There’s no doubt that the pandemic, with its harsh lockdowns and impact on economies worldwide, has played a dramatic role in the supply chain disruptions being experienced by manufacturers. Many businesses in the US, and elsewhere, were sourcing their componentry from China. Shipping challenges.
That stated, in certain regions such as across Europe and China , the year continues to present economic and manufacturing challenges. That was because global wide ocean container shipping lines had so many new ships entering service this year, that this added capacity was able to buffer more immediate impacts.
Diversify your supplier base Single sourcing presents a huge risk for companies in all industries, especially as geopolitical disruptions are on the rise. The goal is to be able to trace individual parts to the exact site where they are manufactured. Picture this: a critical part of your product is only made in one factory in Taiwan.
Drought conditions at the Panama Canal are not a good match for its high water demands; it takes at least 50 million gallons of water , with some sources citing much more, to move a single ship through the 51-mile waterway. Under normal operating conditions, the Panama Canal handles 36 to 38 ships per day.
The latest updates on shipping delays in the Red Sea in January 2024, including which businesses and industries have been impacted. This response is driven by ongoing threats to crew and cargo safety, necessitating the rerouting of ships around the Cape of Good Hope, resulting in substantial delays and escalated shipping costs.
Global Production Activity Rise Global-wide manufacturing levels as depicted in the J.P. Morgan Global Manufacturing PMI® began 2024 with output levels rising for the first time in eight months. Global manufacturing employment levels fell for the fifth straight month. Manufacturing , there were mixed consensus.
New Panama Canal Options: Running the Numbers with a TMS.Connect by TMC. When the expanded Panama Canal opened this June, a new set of routes became available for shippers and beneficial cargo owners (BCOs). As described in my previous blog post , the enlarged Panama Canal can handle container ships up to 13,000 TEUs in size.
Such an interruption can affect any of the supply chain steps, often involving sourcing of raw materials, production, and distribution of goods or services. While the worst of the pandemic appears to be behind us, COVID-19's impact on manufacturing supply chains continues to reverberate the landscape.
One manifestation of this problem is that multiple ports on the east coast are deepening their approach channels in order to attract bigger cargo ships. The widening of the Panama Canal to enable larger ships to pass through the trade artery will generate this traffic. The situation is exacerbated by local stockpiling.
Slight Rise in Global Wide Production Activity Global-wide manufacturing levels as depicted in the J.P. Morgan Global Manufacturing PMI® was headlined with back-to-back expansion levels in February. The HSBC India Manufacturing PMI® rose from 56.5 Manufacturing Among the two reported PMI reports relative to U.S.
However, the lessons garnered during the pandemic will likely drive inventory management toward less of a dependency on global-wide sourcing and more toward product postponement sourcing and customer fulfillment strategies. Manufacturing and Supply Chain Activity Levels- Global-wide manufacturing levels as depicted in the J.P.
Rivian Automotive is now free to sell its EV parcel vans to other parcel carriers, and added reinforcement from multiple ocean container shipping carriers that the existing industry volume declines could extend for two to three years. Transiting the Suez Canal from Asian ports is estimated to be 15 percent costlier in 2024.
However, economic and manufacturing recession conditions are now being observed. Thus, de-carbonization mitigation efforts become more focused on supply chain strategy and policy actions along with product sourcing and transportation movement efforts weighted toward de-carbonization.
Persistent Red Sea Risks Continue to Disrupt Critical Trade Route The ongoing conflict in Yemen has created several shipping risks in the Red Sea. Persistent Red Sea Risks Continue to Disrupt Critical Trade Route The ongoing conflict in Yemen has created several shipping risks in the Red Sea. Delays have led to higher costs for goods.
Understand how the recent Red Sea ship attacks are impacting global supply chains and how to mitigate potential risks. Ships are avoiding Egypt’s Suez Canal, the shortest maritime route from Europe to Asia and one of the world’s most important waterways, which accounts for about 12% of the world’s shipping traffic.
A new consideration to such shifts is a current development related to ongoing concerns toward increased lowered water levels in the approaches to the Panama Canal. The development is resulting in building multiday backup of ships waiting to traverse the canal.
West Coast dockworkers incurring job actions that are hindering container ship unloading among various port terminals. But shipping industry sources now indicate that negotiations deteriorated last week over the scope of expected dockworker wage increases. The existing labor contract expired on July 1, 2022.
Journalist Andrew Freedman explains, “Geopolitical risks in the Red Sea and extreme weather in Central America are converging, jostling global supply chains fed by the Suez and Panama Canals.”[5] ”[5] He adds, “Most major shipping firms are avoiding the Red Sea entirely and re-routing around the Cape of Good Hope.
BlackRocks $19 billion acquisition of Panamanian ports underscores Wall Streets growing influence in global trade, while Cornings solar manufacturing alliance boosts U.S. ports in 2025 underscores Hapag-Lloyds commitment to digital innovation in the shipping industry. energy independence. This phased rollout across major U.S.
Background Over the past 4-5 years, manufacturers, wholesalers and retailers have been challenged by a frequency and severity of disruptive and unforeseen events. Shipping rates and added surcharges exploded resulting in impacts on product margins and expected profitability levels among businesses.
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