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Those goods flowed through three regional hubs – in Singapore, Panama City, Panama and Stabio, Switzerland – to 49 distribution centers, 24 of which VF operates. The supply plan will include the procurement plan for their raw material supplies (Tier 2) needed for their finished goods suppliers (Tier 1).
Global Shipping Effects of the Hanjin Bankruptcy. Hanjin Shipping, a South Korean company and the seventh largest container shipper in the world, filed for bankruptcy on Wednesday, August 31, 2016, which has prompted significant questions and confusion around the world as to how this will affect global shipping.
Heading into this year, the global shipping disruptions that impacted transit times related to having to avoid the Suez Canal because of Red Sea terrorist attacks, or reduced water levels in the Panama Canal requiring reduced transit slots were generally mitigated. Global wide manufacturing activity levels as measured by the J.P.
For example, the China-owned COSCO and China Shipping Container Lines (CSCL) have confirmed their merger. Panama Canal Expansion. The Panama Canal expansion, slated for completion this spring, will impact logistics in a big way. Those uncertainties are considered the root of many consolidations. Free Time and Chassis.
This situation has been compounded by the fact that Covid-19 essentially exposed what was already an underperforming process thanks to factors such as the US-China trade war, less efficient shipping routes and a huge drive to cut costs by consolidating loads. Shipping challenges.
More Resources Home Red Sea and Suez Canal Shipping Crisis Update Judah Levine Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Even with an international naval force in place, Houthi attacks on commercial vessels in the Red Sea continue.
Focus on materials critical to your highest revenue products Procurement and supply chain managers need to adopt a new mindset for building more resilient supply chains. Integrate supplier risk insights into planning and procurement strategy Neglecting supplier data and supply chain disruption data is out with the end of 2023!
Anti-competitive practices remain a peripheral CSR issue for most companies , particularly in the context of sustainable procurement. Moving beyond compliance: Sustainable Procurement. Indeed, suppliers involved in cartel activity should be viewed with skepticism in any partnership or procurement negotiation. What to read next.
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.
Supply Chain Matters alerts clients and readers to a potential replay of the 2021 disruption in global shipping and cascading supply chain disruption as a result of recent events. Teams have vivid memories of the grounding accident of the mega container ship Ever Given as this ship was attempting to transit the Suez Canal toward Europe.
Judah Levine Optimize your logistics tendering, vendor selection, negotiations, and procurement Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) increased 3% to $1,609/FEU. Asia-US East Coast prices (FBX03 Weekly) climbed 7% to $2,357/FEU.
We therefore wanted to highlight another published survey that provides data reflecting on the beginning of the traditional peak shipping season, whether shippers are anticipating a classic peak season, along with their expectations of container shipping rates as industries prepare for second-half activity levels.
As we have noted in this thread of updates, to a further extent, shipments from Asia eastward that traverse the Panama Canal are an important added backdrop to ocean transport disruption impacts. Further, Japan based shipping line Mitsui OSK Lines indicated a belief that this disruption could extend thru the balance of 2024.
From the Panama Canal opening to a record year in ecommerce, the happenings of 2016 have kept everyone on their toes. The Panama Canal is a prime example of a global vision being realized. When it opened, it revolutionized shipping lanes from China to the East Coast. It’s been a big year for the transportation industry.
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.
Judah Levine December 13, 2023 Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) fell 1% to $1,603/FEU. Asia-US East Coast prices (FBX03 Weekly) climbed 5% to $2,497/FEU.
Judah Levine November 28, 2023 Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) increased 3% to $1,613/FEU. Asia-US East Coast prices (FBX03 Weekly) fell 1% to $2,362/FEU.
Judah Levine December 6, 2023 Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) were level at $1,620/FEU. Asia-US East Coast prices (FBX03 Weekly) were also level at $2,367/FEU.
Judah Levine December 19, 2023 Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) fell 3% to $1,556/FEU. Asia-US East Coast prices (FBX03 Weekly) were level at $2,509/FEU.
For example, the China-owned COSCO and China Shipping Container Lines (CSCL) have confirmed their merger. Panama Canal Expansion. The Panama Canal expansion, slated for completion this spring, will impact logistics in a big way. Those uncertainties are considered the root of many consolidations. Free Time and Chassis.
Let's look at some specific steps that procurement leaders can take to minimize the possible financial impact of supply chain disruption. For example, let's imagine a business that typically prioritizes cost-efficient delivery of raw materials, but is currently manufacturing the product to be shipped as soon as possible.
Judah Levine December 28, 2023 Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) increased 7% to $1,659/FEU. Asia-US East Coast prices (FBX03 Weekly) were level at $2,505/FEU.
The other is the related increased terrorist attacks on global wide shipping occurring in the Red Sea region that is ongoing. Various ocean container and bulk shipping vessels remain compelled to bypass this transit point to and from the Suez Canal , and to route instead around Africa to reach European and other major ports.
United Kingdom manufacturers additionally pointed to the ongoing Red Sea shipping crisis leading to added supply disruptions. Production and shipping increases have traditionally been reflective of inventory stocking needs for Spring and Summer product demand customer fulfillment. All rights reserved.
As 2024 begins, two of the world’s most critical ocean transit corridors, the Suez Canal , and the Panama Canal are facing threats of shipping disruption as global geopolitical tensions and terrorist threats escalate. Truck and rail transportation movements across the Mexico and U.S.
Judah Levine February 13, 2024 Optimize your logistics tendering, vendor selection, negotiations, and procurement with Freightos Data Book a Demo Weekly highlights Ocean rates – Freightos Baltic Index Asia-US West Coast prices (FBX01 Weekly) increased 11% to $4,859/FEU. Asia-US East Coast prices (FBX03 Weekly) climbed 3% to $6,589/FEU.
The latest announced agreement involving the global wide shipping industry for net zero emissions “ by and around 2050 ” is a case in point. Once more, this does not solely apply to businesses, but also transportation and logistics services firms as well.
Reoccurring events—like the holiday season—used to provide some level of predictability to ocean shipping trends in the transpacific eastbound (TPEB) trade lane. Normally, we see a rush in ocean shipping just before the Chinese New Year (CNY). gulf region due to Panama Canal restrictions. Peak season coast to coast.
The Supply Chain Matters blog provides readers with a further update on the ongoing Red Sea shipping disruption including added context and implications. Background Just before the Christmas holiday, Supply Chain Matters alerted our readers to rather troubling signs for another global-wide shipping disruption.
For example, the Panama Canal has already restricted the size of ships permitted to pass through it due to drought conditions created by El Niño. Care should be taken to understand each node in your supply chain—rail lines, ports, choke points, distribution centers—and identify potential risks associated with each.
The Supply Chain Matters blog provides our readers with a further update on the ongoing Red Sea shipping disruption including added context and implications. Background Just before the Christmas 2023 holiday, Supply Chain Matters alerted our readers to rather troubling signs for another global-wide shipping disruption. East Coast.
Most recently, drought conditions in Panama limited the flow of ships through the Panama Canal. mechanisms such as mandatory due diligence on adaptation and incentivized public procurement). Back in 2022, the Mississippi, Yangtze, and Rhine rivers all experienced serious logistic bottlenecks due to drought conditions.
At the same time, street blockades and trucker strikes are exacerbating those desabastecimientos in population centers such as Panama City. A new Resilinc Special Report: Impact of Strikes on the Global Shipping Industry describes disruptive strikes and protests across Asia, Europe, and the Americas.
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. Labor contract renewal negotiations among the labor unions representing U.S.
For example, the widening of the Panama Canal will change the conditions here in North Carolina, as enormous container ships will be circumnavigating the globe. And in Panama a huge transshipment area will grow where they will will do break bulk, put cargo onto smaller ships and send to North America.
BlackRocks $22 Billion Deal for Panama Canal and Other Global Wide Terminal Operations A consortium of investors, led by private equity firm Black Rock , the firms newly acquired arm Global Infrastructure Partners , and Geneva based Terminal Investment have agreed to acquire a reported 90 percent interest in Panama Ports for a reported $22.8
In 2021, one of the worlds largest container ships, the Ever Given , encountered a storm and subsequently ran aground, that blocked all ship traffic traversing one of the worlds most crucial shipping channels, the Panama Canal , for over a week.
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