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Day: 1 July 2022

UniCarriers upgrades stackers for next-level productivity

Posted on by David Priestman

UniCarriers has launched an upgraded series of compact pedestrian stackers with state-of-the-art features designed to enhance operator comfort and productivity. As the latest innovations in the world-class UniCarriers portfolio of market-leading stackers, the CSW125 compact pedestrian stacker and CDW125 compact pedestrian stacker for double pallet handling are ideally suited to cross-docking applications.

These compact pedestrian stackers excel at shop replenishment, order picking and short-distance internal transportation in environments such as warehouses, supermarkets and production areas, says the manufacturer. The narrow chassis of just 660mm allows easy working in tight spaces while achieving lift heights of up to 2090mm. Due to its low weight, the single stacker CSW125 is especially valuable if working on mezzanine floors.

The CSW125 and CDW125 stackers now feature a new advanced ergonomic tiller head that offers greater operator comfort thanks to large rocker buttons optimally placed for better access. The robust and impact-resistant tiller head is IP65 rated against water and dust damage and is completely weatherproof to withstand all conditions when working indoors and out. This minimises maintenance and downtime to ensure lower total cost of ownership. The tiller arm is designed to reduce stress on the operator’s arms and hands enabling them to stay comfortable and focused over long shifts.

The compact pedestrian stackers have also been upgraded with a new speed regulated electric proportional valve for controlled lifting/lowering and smooth handling. This supports maximum throughput and efficiency as operators can quickly, confidently and safely handle goods.

UniCarriers says it is dedicated to delivering high-performance trucks built to meet the ever-increasing market demand for efficiency and adaptability. That’s why the CSW125 and CDW125 compact pedestrian stackers come with a range of new options including an advanced multi-function display, battery creep, an audible battery level warning, service alarm, automatic log off, and the ability to revert to low speed at log off. Pedestrian stackers can play a vital role in every part of the pallet handling chain from intake to dispatch, and to increase uptime, UniCarriers utilises a modular build using fewer components for faster repairs and servicing. It’s all part of UniCarriers full-maintenance site support.

UniCarriers upgrades stackers for next-level productivity

Posted on by David Priestman

UniCarriers has launched an upgraded series of compact pedestrian stackers with state-of-the-art features designed to enhance operator comfort and productivity. As the latest innovations in the world-class UniCarriers portfolio of market-leading stackers, the CSW125 compact pedestrian stacker and CDW125 compact pedestrian stacker for double pallet handling are ideally suited to cross-docking applications.

These compact pedestrian stackers excel at shop replenishment, order picking and short-distance internal transportation in environments such as warehouses, supermarkets and production areas, says the manufacturer. The narrow chassis of just 660mm allows easy working in tight spaces while achieving lift heights of up to 2090mm. Due to its low weight, the single stacker CSW125 is especially valuable if working on mezzanine floors.

The CSW125 and CDW125 stackers now feature a new advanced ergonomic tiller head that offers greater operator comfort thanks to large rocker buttons optimally placed for better access. The robust and impact-resistant tiller head is IP65 rated against water and dust damage and is completely weatherproof to withstand all conditions when working indoors and out. This minimises maintenance and downtime to ensure lower total cost of ownership. The tiller arm is designed to reduce stress on the operator’s arms and hands enabling them to stay comfortable and focused over long shifts.

The compact pedestrian stackers have also been upgraded with a new speed regulated electric proportional valve for controlled lifting/lowering and smooth handling. This supports maximum throughput and efficiency as operators can quickly, confidently and safely handle goods.

UniCarriers says it is dedicated to delivering high-performance trucks built to meet the ever-increasing market demand for efficiency and adaptability. That’s why the CSW125 and CDW125 compact pedestrian stackers come with a range of new options including an advanced multi-function display, battery creep, an audible battery level warning, service alarm, automatic log off, and the ability to revert to low speed at log off. Pedestrian stackers can play a vital role in every part of the pallet handling chain from intake to dispatch, and to increase uptime, UniCarriers utilises a modular build using fewer components for faster repairs and servicing. It’s all part of UniCarriers full-maintenance site support.

Volumes recovering at Chinese ports

Posted on by David Priestman

FourKites, a leading real-time supply chain visibility platform, has seen a recovery in import and export ocean shipment volume at Chinese ports over the past weeks as COVID-19 lockdowns have eased.

Volume at the Port of Shanghai has increased since mid-May, with the 14-day average ocean shipment volume now up 2% compared to 12 March (the day before lockdowns went into effect) for shipments tracked by FourKites. This is up from mid-May, where shipment volume was down as much as 25% over the same period. For other Chinese ports, volume tracked by FourKites has remained strong, with volume at the Port of Shenzhen up 37% and volume at the Port of Ningbo-Zhoushan up 32% compared to 12 March.

FourKites has continued to see strong recovery in volume traveling from China to the United States. The 14-day average shipment volume for loads traveling from China to the United States is now up 8% compared to levels seen on 12 March. Volume along this lane had previously reached a low of 43% lower in mid to late April. Delays have decreased correspondingly, with the 14-day average percentage of shipments delayed along this lane at 27% compared to the high of 39% seen in mid to late April.

Average transit times for loads arriving in the United States from Shanghai remain elevated but show some signs of recovery. The 28-day average transit time for shipments traveling from Shanghai to the United States is now at 69.2 days, up 24% from 12 March. This is down from the peak of 75 days seen in mid-May.

Dwell times for export shipments for Chinese ports has shown some signs of recovery over the past weeks. The 14-day average ocean dwell time for export shipments tracked by FourKites is now at 7.5 days, an increase of 11% compared to 12 March. This is down 17% from the high seen earlier in June. Import dwell time at Chinese ports remains above levels seen before the lockdown, with the 14-day average ocean dwell time now at 4.5 days. This is a 12% increase compared to 12 March.

FourKites has also continued to see a recovery in over-the-road and rail/intermodal shipment volume in the city of Shanghai. The 14-day average shipment volume for loads being delivered to Shanghai is now up 3% compared to 12 March. Volume being picked up from Shanghai continues to climb, but is still down 74% compared to 12 March.

 

Volumes recovering at Chinese ports

Posted on by David Priestman

FourKites, a leading real-time supply chain visibility platform, has seen a recovery in import and export ocean shipment volume at Chinese ports over the past weeks as COVID-19 lockdowns have eased.

Volume at the Port of Shanghai has increased since mid-May, with the 14-day average ocean shipment volume now up 2% compared to 12 March (the day before lockdowns went into effect) for shipments tracked by FourKites. This is up from mid-May, where shipment volume was down as much as 25% over the same period. For other Chinese ports, volume tracked by FourKites has remained strong, with volume at the Port of Shenzhen up 37% and volume at the Port of Ningbo-Zhoushan up 32% compared to 12 March.

FourKites has continued to see strong recovery in volume traveling from China to the United States. The 14-day average shipment volume for loads traveling from China to the United States is now up 8% compared to levels seen on 12 March. Volume along this lane had previously reached a low of 43% lower in mid to late April. Delays have decreased correspondingly, with the 14-day average percentage of shipments delayed along this lane at 27% compared to the high of 39% seen in mid to late April.

Average transit times for loads arriving in the United States from Shanghai remain elevated but show some signs of recovery. The 28-day average transit time for shipments traveling from Shanghai to the United States is now at 69.2 days, up 24% from 12 March. This is down from the peak of 75 days seen in mid-May.

Dwell times for export shipments for Chinese ports has shown some signs of recovery over the past weeks. The 14-day average ocean dwell time for export shipments tracked by FourKites is now at 7.5 days, an increase of 11% compared to 12 March. This is down 17% from the high seen earlier in June. Import dwell time at Chinese ports remains above levels seen before the lockdown, with the 14-day average ocean dwell time now at 4.5 days. This is a 12% increase compared to 12 March.

FourKites has also continued to see a recovery in over-the-road and rail/intermodal shipment volume in the city of Shanghai. The 14-day average shipment volume for loads being delivered to Shanghai is now up 3% compared to 12 March. Volume being picked up from Shanghai continues to climb, but is still down 74% compared to 12 March.

 

Customer remains focal point for the future of intralogistics

Posted on by David Priestman

Over the past two years, many things have changed fundamentally in the industry, including purchasing and consumer behaviour. But this also means a door has opened for companies to walk through it and grab hold of new opportunities to optimize their business models. In the run-up to the recent LogiMAT event, Bernard Biolchini (pictured), Executive Vice President EMEA at Dematic, one of the world’s leading manufacturers of integrated automation technology, software and services for supply chain optimization, spoke about the new era.

Dematic believes it is key to understand that “the best way to help companies find the right opportunities is to constantly engage with their customers, working together and as closely as possible as they seek to fundamentally change their processes.

Q: Hello Mr. Biolchini. Dematic’s trade show presence this year is themed #bringiton. Can you briefly explain what this is all about?

Bernard Biolchini (BB): It means, mutatis mutandis, “We’re ready! Let’s embrace these new opportunities together!” We are sending a direct message to our customers: Let’s work together to take advantage of new opportunities that have cropped up over the last 24 months. Let’s stand together to tackle everything the industry faces in terms of new customer requirements, market conditions and technological issues.

Q: Sounds interesting, how did the new approach come about?

BB: We support our customers in every process, from a specific order to its delivery and while doing so, we engage in a dialog with them to better understand the logistics world from their perspective. Having in-depth conversations was an obvious outcome of the events of the last two or so years, where many parameters have undergone fundamental changes where there is no going back. That is why we have conducted extensive surveys and analysis. We have been talking about a new era lately, and we don’t just mean the industry, but all of Europe as well! It is no longer a luxury for companies here to just think about transformation, but a must for our customers to embrace automation and innovative technologies. Our answer: let’s work together to help you succeed in this new era.

Q: With what results?

BB: In our conversations with them, patterns began emerging. We began to identify opportunities to address new problems that had come up. Some may see them as challenges, but we see them as opportunities to make changes.

Q: Can you give some specific examples?

BB: Firstly, there is the potential of digitalization, particularly the growing importance of data- and cloud-based solutions. Our goal is to make our customers’ supply chains fit for the future through intelligent software and transparent data points. Data transparency is also key to another opportunity – meeting delivery deadlines by creating robust supply chains. Knowing which order is where, at any point in time, is a key building block of successful e-commerce businesses.

Q: What do you do when customers come to Dematic with disruptions in their supply chains?

BB: We bring together all of a customer’s data points. It ensures transparency, reliability and flexibility, but also the greatest possible planning security. In this context, the increasing uncertainty is not just about delivery deadlines, but also specific cost issues. It is the reason we want to be a constant and reliable partner for our customers and support them in optimizing their supply chains with autonomous picking systems, data-based solutions and intelligent software systems. Based on this view, we want to bring another opportunity to the table for discussion, which stems from our #bringiton campaign: efficient use of space. Spatially constrained warehouses in urban environments, for example, rely on high scalability of picking systems. Our multishuttle solutions or our Autostore systems can create real competitive advantages. However, the focal point for intralogistics of the future is not going to be on automation or digitalization. Most definitely not on technology implementation as such.

Q: Instead…?

BB: But if course on the customer! Understanding them and, in turn, their customers is the game changer for developing tomorrow’s technologies and solutions. It is precisely the focus of our thoughts and actions at Dematic. And so we are especially excited about LogiMAT 2022. We want to inspire our visitors with our new solutions, which we plan on presenting to them in an extraordinary way!

Customer remains focal point for the future of intralogistics

Posted on by David Priestman

Over the past two years, many things have changed fundamentally in the industry, including purchasing and consumer behaviour. But this also means a door has opened for companies to walk through it and grab hold of new opportunities to optimize their business models. In the run-up to the recent LogiMAT event, Bernard Biolchini (pictured), Executive Vice President EMEA at Dematic, one of the world’s leading manufacturers of integrated automation technology, software and services for supply chain optimization, spoke about the new era.

Dematic believes it is key to understand that “the best way to help companies find the right opportunities is to constantly engage with their customers, working together and as closely as possible as they seek to fundamentally change their processes.

Q: Hello Mr. Biolchini. Dematic’s trade show presence this year is themed #bringiton. Can you briefly explain what this is all about?

Bernard Biolchini (BB): It means, mutatis mutandis, “We’re ready! Let’s embrace these new opportunities together!” We are sending a direct message to our customers: Let’s work together to take advantage of new opportunities that have cropped up over the last 24 months. Let’s stand together to tackle everything the industry faces in terms of new customer requirements, market conditions and technological issues.

Q: Sounds interesting, how did the new approach come about?

BB: We support our customers in every process, from a specific order to its delivery and while doing so, we engage in a dialog with them to better understand the logistics world from their perspective. Having in-depth conversations was an obvious outcome of the events of the last two or so years, where many parameters have undergone fundamental changes where there is no going back. That is why we have conducted extensive surveys and analysis. We have been talking about a new era lately, and we don’t just mean the industry, but all of Europe as well! It is no longer a luxury for companies here to just think about transformation, but a must for our customers to embrace automation and innovative technologies. Our answer: let’s work together to help you succeed in this new era.

Q: With what results?

BB: In our conversations with them, patterns began emerging. We began to identify opportunities to address new problems that had come up. Some may see them as challenges, but we see them as opportunities to make changes.

Q: Can you give some specific examples?

BB: Firstly, there is the potential of digitalization, particularly the growing importance of data- and cloud-based solutions. Our goal is to make our customers’ supply chains fit for the future through intelligent software and transparent data points. Data transparency is also key to another opportunity – meeting delivery deadlines by creating robust supply chains. Knowing which order is where, at any point in time, is a key building block of successful e-commerce businesses.

Q: What do you do when customers come to Dematic with disruptions in their supply chains?

BB: We bring together all of a customer’s data points. It ensures transparency, reliability and flexibility, but also the greatest possible planning security. In this context, the increasing uncertainty is not just about delivery deadlines, but also specific cost issues. It is the reason we want to be a constant and reliable partner for our customers and support them in optimizing their supply chains with autonomous picking systems, data-based solutions and intelligent software systems. Based on this view, we want to bring another opportunity to the table for discussion, which stems from our #bringiton campaign: efficient use of space. Spatially constrained warehouses in urban environments, for example, rely on high scalability of picking systems. Our multishuttle solutions or our Autostore systems can create real competitive advantages. However, the focal point for intralogistics of the future is not going to be on automation or digitalization. Most definitely not on technology implementation as such.

Q: Instead…?

BB: But if course on the customer! Understanding them and, in turn, their customers is the game changer for developing tomorrow’s technologies and solutions. It is precisely the focus of our thoughts and actions at Dematic. And so we are especially excited about LogiMAT 2022. We want to inspire our visitors with our new solutions, which we plan on presenting to them in an extraordinary way!

Dangers of cyberattacks in digital commerce

Posted on by Keith McKinley

For E-commerce sites, hackers and cyberattacks will always be a risk to the job. For thieves and their technical know-how, E-commerce sites are gold mines of personal and financial data. In addition to this, for businesses of all sizes, the cost of a breach both in loss of data and customer trust can be hugely damaging. Yoav Kutner, Co-Founder and CEO of Oro Inc, explains why E-commerce business owners need to remain vigilant.

E-commerce business owners are all too aware of these issues and are increasing their security measures. The VMWare Carbon Black 2020 Cybersecurity Outlook Report found that 77% of businesses surveyed had purchased new security products in the last year and 69% had increased security staff.

Cybersecurity is essential for E-commerce, as it is the combination of people, policies, processes, and technologies employed to protect its cyber assets.  Cyber attacks result in loss of revenue, data and overall viability for businesses. For online sellers especially, it is not just their physical computer systems which are at risk of E-commerce security breaches, but also their software, networks, and infrastructure.

Are there different types of cyberattacks? The answer is yes – which is why it’s more important than ever to have security measures in place. Here are three of the most common attacks to be aware of.

DoS attack

A denial-of-service (DoS) attack is designed to overwhelm the resources of a system to the point where it is unable to reply to legitimate service requests. A distributed denial-of-service (DDoS) attack is similar in that it also seeks to drain the resources of a system. A DDoS attack is initiated by a vast array of malware-infected host machines controlled by the attacker. These are referred to as “denial of service” attacks because the victim site is unable to provide service to those who want to access it.

With a DoS attack, the target site gets flooded with illegitimate requests. Because the site has to respond to each request, its resources get consumed by all the responses. This makes it impossible for the site to serve users as it normally does and often results in a complete shutdown of the site.

MITM Attacks

Man-in-the-middle (MITM) types of cyber attacks refer to breaches in cybersecurity that make it possible for an attacker to eavesdrop on the data sent back and forth between two people, networks, or computers. It is called a “man in the middle” attack because the attacker positions themselves in the “middle” or between the two parties trying to communicate. In effect, the attacker is spying on the interaction between the two parties.

In a MITM attack, the two parties involved feel like they are communicating as they normally do. What they do not know is that the person actually sending the message illicitly modifies or accesses the message before it reaches its destination. Some ways to protect yourself and your organisation from MITM attacks are by using strong encryption on access points or using a virtual private network (VPN).

Whale-phishing Attacks

A whale-phishing attack is so-named because it goes after the “big fish” or whales of an organisation, which typically include those in the C-suite or others in charge of the organisation. These individuals are likely to possess information that can be valuable to attackers, such as proprietary information about the business or its operations.

If a targeted “whale” downloads ransomware, they are more likely to pay the ransom to prevent news of the successful attack from getting out and damaging their reputation or that of the organisation. Whale-phishing attacks can be prevented by taking the same kinds of precautions to avoid phishing attacks, such as carefully examining emails and the attachments and links that come with them and keeping an eye out for suspicious destinations or parameters.

When it comes to security, Oro is the optimal choice – it allows you to focus on growing your B2B E-commerce business safely and worry-free. Oro applications are built from the ground up to support sizable B2B enterprises and complex, multi-level organisational hierarchies with thousands of employees and millions of website customers.

Dangers of cyberattacks in digital commerce

Posted on by David Priestman

For E-commerce sites, hackers and cyberattacks will always be a risk to the job. For thieves and their technical know-how, E-commerce sites are gold mines of personal and financial data. In addition to this, for businesses of all sizes, the cost of a breach both in loss of data and customer trust can be hugely damaging. Yoav Kutner, Co-Founder and CEO of Oro Inc, explains why E-commerce business owners need to remain vigilant.

E-commerce business owners are all too aware of these issues and are increasing their security measures. The VMWare Carbon Black 2020 Cybersecurity Outlook Report found that 77% of businesses surveyed had purchased new security products in the last year and 69% had increased security staff.

Cybersecurity is essential for E-commerce, as it is the combination of people, policies, processes, and technologies employed to protect its cyber assets.  Cyber attacks result in loss of revenue, data and overall viability for businesses. For online sellers especially, it is not just their physical computer systems which are at risk of E-commerce security breaches, but also their software, networks, and infrastructure.

Are there different types of cyberattacks? The answer is yes – which is why it’s more important than ever to have security measures in place. Here are three of the most common attacks to be aware of.

DoS attack

A denial-of-service (DoS) attack is designed to overwhelm the resources of a system to the point where it is unable to reply to legitimate service requests. A distributed denial-of-service (DDoS) attack is similar in that it also seeks to drain the resources of a system. A DDoS attack is initiated by a vast array of malware-infected host machines controlled by the attacker. These are referred to as “denial of service” attacks because the victim site is unable to provide service to those who want to access it.

With a DoS attack, the target site gets flooded with illegitimate requests. Because the site has to respond to each request, its resources get consumed by all the responses. This makes it impossible for the site to serve users as it normally does and often results in a complete shutdown of the site.

MITM Attacks

Man-in-the-middle (MITM) types of cyber attacks refer to breaches in cybersecurity that make it possible for an attacker to eavesdrop on the data sent back and forth between two people, networks, or computers. It is called a “man in the middle” attack because the attacker positions themselves in the “middle” or between the two parties trying to communicate. In effect, the attacker is spying on the interaction between the two parties.

In a MITM attack, the two parties involved feel like they are communicating as they normally do. What they do not know is that the person actually sending the message illicitly modifies or accesses the message before it reaches its destination. Some ways to protect yourself and your organisation from MITM attacks are by using strong encryption on access points or using a virtual private network (VPN).

Whale-phishing Attacks

A whale-phishing attack is so-named because it goes after the “big fish” or whales of an organisation, which typically include those in the C-suite or others in charge of the organisation. These individuals are likely to possess information that can be valuable to attackers, such as proprietary information about the business or its operations.

If a targeted “whale” downloads ransomware, they are more likely to pay the ransom to prevent news of the successful attack from getting out and damaging their reputation or that of the organisation. Whale-phishing attacks can be prevented by taking the same kinds of precautions to avoid phishing attacks, such as carefully examining emails and the attachments and links that come with them and keeping an eye out for suspicious destinations or parameters.

When it comes to security, Oro is the optimal choice – it allows you to focus on growing your B2B E-commerce business safely and worry-free. Oro applications are built from the ground up to support sizable B2B enterprises and complex, multi-level organisational hierarchies with thousands of employees and millions of website customers.

Experts see silver lining beyond container chaos

Posted on by David Priestman

Congestion of container ships on the North Sea, expensive drayage transport, container shortage: the German economy has been groaning under these conditions for some time. There is no relief in sight in the short term, but in the long run. Although the supply chain experts of the Bochum-based software company Setlog assume that the effects of the current crisis will last well into 2023, they forecast decreasing ocean freight rates in the fourth quarter of 2022.

An analysis of 80 Setlog customers and brands from June 22 also shows: Importers of fast-moving consumer goods learned from their misery and now order their desired products on average one week earlier than they did in 2020 and before the coronavirus pandemic, thus reducing delays. Another outcome of the analysis: they are not shifting their production from the Far East to Europe.

The aftermath of the Shanghai lockdown, cancelled departures of container ships and the strikes in some German ports are causing serious problems for the economy: According to the Kiel Institute for the World Economy (IfW), container ships with a capacity of around 150,000 standard containers are waiting to call at Bremerhaven and Hamburg in the German Bay alone. The situation is even more dramatic off the ports of Rotterdam and Antwerp.

“The consequences are not only delays but also a shortage of containers. Switching to smaller ports is problematic because they lack space and a strong infrastructure for transports to the hinterland. If rail is not an alternative, expensive direct transport by truck remains the only option,” reports Ralf Duester, member of the Setlog board.

Logistics service providers also face the problem of not being able to ramp up their capacities due to the lack of staff. Duester does not expect an improvement in ocean freight rates in the short term – but in the long term from the fourth quarter of this year if the ship owners also play along.

Patrick Merkel, managing director of Prologue Solutions, agrees: “Inflation, the shift in interest rates and high prices in various sectors suggest that rates will fall.” Due to the geopolitical situation and the consequences of the Coronavirus pandemic, logistics service providers tend to expect less business in the coming half-year. Shippers are also benefiting from ship owners that have built up more capacity.

Due to this tense situation, according to the Setlog analysis, the transit time of ocean freight from the Far East to the western ports took an average of 42.5 days. For comparison: in 2021 it was 41.6 days, in 2020 around 35. Before the pandemic (2019), the transit time was 31 days. In the past two years, up to 30% of goods were late due to lockdowns, production delays and long transit times, according to Setlog. However, buyers of fast-moving consumer goods managed to push the proportion of goods arriving late down to three to five per cent compared to the pre-Covid period in bringing orders forward by an average of one week.

While some industries are considering dual production for sensitive goods and components, as well as re-shoring and near-shoring, the analysis shows that specialists for fast-moving consumer goods did not relocate production to Europe or Germany. Only one to two percent of their total volume of apparel is produced in Eastern Europe or North Africa – this has not changed since the beginning of the pandemic. Turkey’s share is also constant at about 11.5%, China’s at 11.0%. However, suppliers in Bangladesh and Vietnam were able to get more business. Bangladesh’s share rose from 28.0% to 32.0% during the pandemic, Vietnam’s from 4.5% to 7.3%.

The consequences of Covid-19 apparently led to a change in some companies. They are investing in strategies and systems to increase the availability of goods and to be able to react more flexibly overall to unplanned changes in the supply chain. “More and more companies are coming to us to learn how to use software to get more transparency in the supply chain and to inform all partners about changes in almost real time,” Duester reports.

“For these managers availability and resilience now count more than cost savings.” He knows companies that make a point of ensuring that products or components must be available in dual sourcing – at every location. “Companies will soon no longer evaluate buyers according to cost savings, but intensify other criteria,” the Setlog manager predicts.

 

Experts see silver lining beyond container chaos

Posted on by David Priestman

Congestion of container ships on the North Sea, expensive drayage transport, container shortage: the German economy has been groaning under these conditions for some time. There is no relief in sight in the short term, but in the long run. Although the supply chain experts of the Bochum-based software company Setlog assume that the effects of the current crisis will last well into 2023, they forecast decreasing ocean freight rates in the fourth quarter of 2022.

An analysis of 80 Setlog customers and brands from June 22 also shows: Importers of fast-moving consumer goods learned from their misery and now order their desired products on average one week earlier than they did in 2020 and before the coronavirus pandemic, thus reducing delays. Another outcome of the analysis: they are not shifting their production from the Far East to Europe.

The aftermath of the Shanghai lockdown, cancelled departures of container ships and the strikes in some German ports are causing serious problems for the economy: According to the Kiel Institute for the World Economy (IfW), container ships with a capacity of around 150,000 standard containers are waiting to call at Bremerhaven and Hamburg in the German Bay alone. The situation is even more dramatic off the ports of Rotterdam and Antwerp.

“The consequences are not only delays but also a shortage of containers. Switching to smaller ports is problematic because they lack space and a strong infrastructure for transports to the hinterland. If rail is not an alternative, expensive direct transport by truck remains the only option,” reports Ralf Duester, member of the Setlog board.

Logistics service providers also face the problem of not being able to ramp up their capacities due to the lack of staff. Duester does not expect an improvement in ocean freight rates in the short term – but in the long term from the fourth quarter of this year if the ship owners also play along.

Patrick Merkel, managing director of Prologue Solutions, agrees: “Inflation, the shift in interest rates and high prices in various sectors suggest that rates will fall.” Due to the geopolitical situation and the consequences of the Coronavirus pandemic, logistics service providers tend to expect less business in the coming half-year. Shippers are also benefiting from ship owners that have built up more capacity.

Due to this tense situation, according to the Setlog analysis, the transit time of ocean freight from the Far East to the western ports took an average of 42.5 days. For comparison: in 2021 it was 41.6 days, in 2020 around 35. Before the pandemic (2019), the transit time was 31 days. In the past two years, up to 30% of goods were late due to lockdowns, production delays and long transit times, according to Setlog. However, buyers of fast-moving consumer goods managed to push the proportion of goods arriving late down to three to five per cent compared to the pre-Covid period in bringing orders forward by an average of one week.

While some industries are considering dual production for sensitive goods and components, as well as re-shoring and near-shoring, the analysis shows that specialists for fast-moving consumer goods did not relocate production to Europe or Germany. Only one to two percent of their total volume of apparel is produced in Eastern Europe or North Africa – this has not changed since the beginning of the pandemic. Turkey’s share is also constant at about 11.5%, China’s at 11.0%. However, suppliers in Bangladesh and Vietnam were able to get more business. Bangladesh’s share rose from 28.0% to 32.0% during the pandemic, Vietnam’s from 4.5% to 7.3%.

The consequences of Covid-19 apparently led to a change in some companies. They are investing in strategies and systems to increase the availability of goods and to be able to react more flexibly overall to unplanned changes in the supply chain. “More and more companies are coming to us to learn how to use software to get more transparency in the supply chain and to inform all partners about changes in almost real time,” Duester reports.

“For these managers availability and resilience now count more than cost savings.” He knows companies that make a point of ensuring that products or components must be available in dual sourcing – at every location. “Companies will soon no longer evaluate buyers according to cost savings, but intensify other criteria,” the Setlog manager predicts.

 

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