This year has started with severe supply chain disruptions, which is not a good omen for things to come in 2024. That said, headlines this month are full of ideas for how forward-thinking organizations are making themselves disruption-proof. In essence, as it appears there’s no end to regular and prolonged disruptions to the movement of goods around the world, the best bet is to establish permanent solutions that can help organizations sidestep disruptions now and in the future.
Continue reading to learn more about making your organization disruption-proof in 2024 and beyond, and get in touch with the Cargologik team if you’d like to learn more about our platform and how it empowers supply chain visibility and orchestration.
The Latest From the Red Sea
Attacks on commercial ships in the Red Sea continue in the New Year, as Houthi rebels are still firing anti-ship ballistic missiles. There’s been a stop-and-start theme around the crisis in the Red Sea. In December, Maersk announced that it would restart its Red Sea shipments, but the major carrier later said that it would divert ships to other routes — calling the events in that part of the world a “major disruption.”
There are always supply chain disruptions that can be somewhat anticipated. For example, there will always be hurricanes (and other weather events) and labor stoppages that affect the supply chain to some degree. These attacks in the Red Sea fall into a category of unanticipated supply chain disruptions, much like the COVID-19 pandemic and its aftereffects, and there’s no end in sight to what’s happening there. Shippers, carriers, and other participants in the global supply chain are left to plan as though the Red Sea attacks will make the waterway impassable for the foreseeable future — while hoping that something can be done to rectify the situation as quickly as possible.
Good News From the NY Fed?
The attacks in the Red Sea, which started in December, came at a time when the Federal Reserve Bank of New York suggested that “global supply chain pressures eased” at the end of the year. A Reuters story reports that “disruptions in the movement of goods was a key factor pushing the inflation surge” that has plagued the world in recent months. This mismatch between the events in the Red Sea and the statement by the NY Fed demonstrates just how volatile our global supply chain and economy are in 2024, highlighting the need for visibility that can combat these pressures. Without visibility in place, achieving the desired level of operational efficiency will be that much harder.
Beyond the Red Sea, Weather and Regulations Lurk
If the Red Sea crisis wasn’t enough for shippers, carriers, LSPs, and others to deal with right now, Law360 wrote about weather and regulations as the two most prominent supply chain risks in 2024. We’re all familiar with how drought has affected shipping in the Panama Canal, and sustainability-related regulations in Europe will have major implications across the supply chain landscape. With all of these threats possible in the coming months, it’s more important now than ever to have reliable visibility in place for your organization.
Preparing for Peak Season 2024
Now that peak season 2023 is over, it’s time for organizations to start thinking about peak season 2024. Imagine a weather event, regulations, or something similar to the Red Sea crisis affecting the supply chain when peak season goods are flowing later in the year. Without visibility in place, it will be nearly impossible to keep your shipments moving forward effectively.
Retailers, in particular, should be thinking about establishing visibility now so that it’s up and running for the busiest time of the year. Establishing visibility can be a keystone achievement that helps retailers create the outstanding customer experiences needed to grow their businesses.
Solving Problems With AI & Automation
Above, we mention regulations as a driver of supply chain pressure in 2024. Reuters suggests that high levels of AI and automation are essential to keeping up with sustainability-related regulations. There are different ways to approach tech-driven solutions. Some supply chain participants are attempting to piece together fragmented tech stacks with disparate platforms taking care of different things: visibility, document management, booking, etc. But it’s far more efficient to establish a single platform for supply chain orchestration, one that serves as a hub for all of your data and information — including visibility data, emissions data, plus more.
A Silver Lining in the Air Cargo Space
In the midst of maritime challenges related to the Red Sea crisis, there’s good news from the International Air Transportation Association, which says that the air cargo industry is set for a positive 2024. China’s supply chain issues and currency fluctuations are noted as possible downsides, but the overall sector is poised for growth.
Technology to Help You Navigate Disruptions
Navigating the supply chain has never been more difficult for BCOs and LSPs. The disruptions outlined above create challenges each week, but solutions are available to organizations that are ready to retake control.
Cargologik offers a supply chain orchestration platform that provides end-to-end visibility and is your single source of truth. If you want to make 2024 a banner year for your organization’s supply chain management, get started now.
