Are supply chains really as bad as they seem right now? Forbes asks that question in the wake of the Red Sea crisis, ongoing issues around the Panama Canal, plus other disruptions that have collectively gotten 2024 off to an incredibly slow start.
This week’s edition of the Cargologik newsletter seeks to provide an answer to that question. Continue reading for the latest on what’s happening around the global supply chain, and get in touch with us if you’re searching for a supply chain orchestration and visibility platform that can serve as your single source of truth.
The Need for Visibility Has Never Been Greater
The Panama and Suez canals are among the two most important waterways in the world. Unfortunately, both are dealing with significant shipping challenges right now, the former due to drought and the latter due to missile attacks. The issues are leading to a congestion crisis, but while major carriers like Maersk will not use the Suez Canal for the foreseeable future, there are indications that the Red Sea crisis could be worse.
There’s a common theme emerging as experts write about and discuss what’s going on in the Red Sea area. The theme is that visibility is needed to unwind this problem. The NRF recently wrote about the need for greater creativity and visibility at U.S. ports, a commonly cited solution to disruptions everywhere. Without it, BCOs and LSPs are left to react and scramble to find solutions. With it, BCOs and LSPs can be more proactive, working to get ahead of disruptions just as they start.
What About Shipping Rates?
Rates are a mixed bag right now, which may indicate a continuation of the volatility that shippers have become accustomed to early in the year. Maritime shipping rates are showing signs of easing despite what’s going on in the Red Sea. Conversely, air cargo rates are on the rise, partially because of the Lunar New Year and partially due to increasing demand related to the Red Sea crisis.
Rates are just one portion of supply chain operations for organizations to think about and navigate. They must also consider document management, visibility, coordination and communication among stakeholders, and more. There are two options when searching for technology to support these tasks. First, an organization can take a fragmented approach, choosing disparate technologies to handle specialized jobs. Or, it can choose one platform for supply chain visibility, opting for a single source of truth amid supply chain disruptions and general chaos.
Updates on the Major Canals
We continue to share news about the ongoing issues near the Panama and Suez canals because those issues have been so disruptive to the free flow of goods around the world.
Panama Canal restrictions are not expected to change until April at the earliest. Above, we mentioned that Maersk (and likely other major carriers) have no intention of returning to the Red Sea anytime soon. As these issues continue without an end sight, retailers are among the many stakeholders bearing the brunt by way of increasing costs, difficult inventory management, and deteriorating customer experience/satisfaction.
Now is a Great Time for Supply Chain Technology
As supply chain disruptions continue as a norm rather than an exception, investors are bullish right now on supply chain and logistics technology. It’s easy to make the case for investment in these products as they have become indispensable in the modern age.
Underlining the need for modern supply chain technologies, Supply Chain Management Reviews writes about the importance of supply chain symphony — with an emphasis on single sources of truth that help avoid fragmentation. When you implement the right single source of truth as your supply chain technology, you can achieve the level of operational efficiency that’s desperately needed today.
Opinions on Coming Regulations
As climate- and geopolitical-related disruptions make navigating the global supply chain more difficult, new regulations will make the landscape even more challenging for shippers in the near future. The European Union has passed a law targeting human rights and environmental abuses in the supply chain. While well-intentioned, these laws could lead to serious consequences.
The Future of Supply Chain Orchestration and Visibility
With the need for reliable supply chain technology growing by the day, let Cargologik be your partner. We offer a supply chain orchestration and visibility platform that can serve as the single source of truth that is so essential given the modern landscape. We believe that the future of supply chain orchestration and visibility is collaborative — and we provide a platform that helps you navigate today’s disruptions as nimbly and effectively as possible.
Get started now to learn more about our platform and how it can support your supply chain operations.
