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Day: 19 November 2024

English Channel Supply Chain Delays threaten Christmas

Posted on by David Priestman

As businesses take steps to boost supply ahead of the busy Christmas shopping period, research from Vinturas, a global supply chain interoperable network solution, found that the English channel is the region where the most UK based businesses experienced those delays and lost shipments over the last year.

The research, conducted in partnership with Censuswide, surveyed 400 global business leaders with decision making responsibility for shipping and international logistics and found that over 13% had shipments which were ‘significantly delayed’ over the last year. When speaking to businesses based in the UK, over two fifths (43%) said that they experienced delays in the English Channel, followed by the Suez Canal (40%) and the Panama Canal (33%).

Concerningly, UK based businesses surveyed said that they had also lost an average of 11% of shipments the last year due to ongoing supply chain disruptions, with the English Channel also scoring top for lost shipments as 39% of businesses polled said that losses occurred in the region. This comes as 70% of UK businesses said they were concerned about regulatory problems or compliance violations in their supply chains.

As businesses enter peak shopping period, the research reveals that two fifths (40%) of UK companies said blind spots and inefficiencies in supply chain data have created difficulties predicting demand or inventory levels. What’s more, over one in three (35%) UK business leaders said the stress of managing external supply chain shocks is a key pain point their business faces when it comes to logistics.

Supply chain blindspots harming businesses

However, despite the unpredictability of global shock events causing delays to shipments, UK business leaders also point to internal problems that continue to hamper logistics performance. 98% of business leaders said that blind spots or inefficiencies have had some impact their business in the last year. When asked to evaluate the reasons for supply chain difficulties, 30% said that they had difficulty accessing real-time logistics data from which they could make decisions. A further one in three (33%) said they lacked integration (interoperability) between different parts of their supply chain.

However, despite many business leaders pointing to issues around access to accurate data or the ability to integrate supply chain systems, the research showed that 16% of UK companies still rely on paper-based processes (e.g. manual logs and forms) for their supply chain operations management. To help overcome some of these issues, UK business leaders state that they plan to increase investment in supply chain technology over the next year by an average of 8.2%.

Supply Chain Delays threaten Christmas

Ronald Kleijwegt, CEO, Vinturas commented: “The English Channel is naturally the major artery for UK trade overseas. It is therefore shocking to see it emerge as a hotspot for delays, especially given the scale of the recent problems in other regions like the Red Sea or Panama Canal. While there are several factors at play, it’s clear that regulatory compliance violations continue to be a major concern for businesses that rely on overseas trade. And with the busiest shopping season around the corner, these challenges are likely to be even more pronounced over the coming weeks.

Of course, regulatory problems due to Brexit and other factors have been a long-running saga and though the global supply chain issues we’ve seen over the past year could not be foreseen, businesses cannot operate without being prepared for this kind of volatility in 2025.

When it comes to managing supply chain ecosystems, organizations must set themselves up for success, getting the basics rights and creating resilience to mitigate losses. As we navigate an increasingly complex and volatile world, supply chain interoperability, actionable visibility, security and investment in resilience, are no longer optional but a fundamental part of business operations that cannot be ignored.”

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ICS Summit kicks off Hong Kong Maritime Week

Posted on by Keith McKinley

The International Chamber of Shipping (ICS), in collaboration with the Transport and Logistics Bureau of the Government of Hong Kong, the Hong Kong Shipowners Association and the Hong Kong Maritime and Port Board, convened nearly 300 delegates from 28 countries, including ministers and senior policymakers from 12 nations, the European Commission and international organisations, with CEOs of companies from the maritime value chain, today at the Hong Kong Global Trade Summit.

With global focus on trade the Summit addressed the challenges facing maritime trade including growing political tensions, the proliferation of protectionism and the increasingly unpredictable and disruptive global landscape.

Opening the Summit, International Chamber of Shipping Chairman Emanuele Grimaldi set the scene:
“As the world recovers from the COVID pandemic this system [the global maritime transportation system] of free trade faces significant challenges due to an increasingly volatile geopolitical environment, including threats to long-standing free-trade principles and the global maritime regulatory framework. The growing pressure of geopolitical tensions, changing political dynamics and threats to traditional norms are all creating a climate of uncertainty. The urgent need to address climate change is putting food security, energy supplies and the risk to the global economy firmly on the radar.

“We also recognise that the success of our industry is intertwined with the success of nations. At a time of increasing disruption and volatility we must seek to bring greater understanding to reduce risk and support global trade. No one wins if we all lose, so we need to find ways to ensure that we can all prosper….we already have the structures and institutions to find solutions…in our rush to address problems please remember what we already have and use them, empower them to deliver for us.”

Secretary General of the International Maritime Organization (IMO), Arsenio Dominguez, provided a keynote address and reiterated the importance of collaboration and global regulations: “It is only by working and engaging with each other that we can find solutions to the risks and disruptions that arise…I emphasise here the need for cohesive global regulations. Shipping is inherently international and unilateral and regional rules can undermine the regulatory framework agreed upon at IMO…Shipping underpins world trade. Everyone depends on shipping for the things people need and want.”

Speaking on the IMO 2023 GHG strategy and the clear ambition for international shipping to reach net zero emissions by or around 2050 Dominguez added, “Member states remain strongly committed to achieving this goal. Currently mid term measures are being developed, including a GHG fuel standard and an economic pricing mechanism, which will be finalised by the end of 2050.”

Many participants at the Summit took the opportunity to highlight the plight of the Galaxy Leader crew on the almost one-year anniversary since being taken captive on the 19 November by Yemeni insurgents. It is abhorrent that seafarers were seized by such forces and that they have been kept from their families and loved ones for this long. Industry calls on States with influence to assist in this matter.

The high-profile Summit, titled ‘Risk and resilience in an age of disruption’ took place at the Hong Kong Convention and Exhibition Centre just before the official opening of Hong Kong Maritime Week. The event was expertly moderated by Former BBC Science Editor and Visiting Professor in Practice, London School of Economics, David Shukman.

Closing the Summit was a conversation between Johanna Hill, Deputy Director General of the World Trade Organization (WTO), and Shukman. The final session brought out some interesting insights and reflections. Hill said, “The shipping industry has deep pride for the work that it is doing. It’s international nature, the critical role it plays in international trade, and the well-being of its seafarers and the well-being of society as a whole…In the trade world we see shipping as an integral part of the business that we are doing, and that is why we are here today….I welcome very much the support to a free and open trading system.”

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The Transformative Impact of AI Tech Adoption in Logistics

Posted on by David Priestman

In the ever-growing and highly competitive logistics sector, automation has become indispensable, with the latest innovations in the form of Artificial Intelligence (AI) transforming business dynamics more radically than ever before. The potential of this technology to enhance productivity is almost unfathomable, positively affecting both the profitability and efficiency of companies, as well as their ability to foster economic growth.

According to 2023 statistics from the US International Trade Administration, the UK AI market was worth more than £16.8 billion and is expected to grow to £801.6 billion by 2035, while government research suggests that around one in six UK businesses has embraced at least one form of the technology.

This growth in AI adoption opens up a range of possibilities for companies in the logistics sector. Taking the data that can be gleaned from connected devices, AI can transform it into useful insights to be managed by Robotic Process Automation (RPA) solutions. In this way, simple and repetitive tasks, usually performed manually by employees, are automated, which generates opportunities to embrace more strategic value-added tasks.

“With the help of Artificial Intelligence, we can accurately predict the demand for goods and services and generate possible scenarios from current market conditions. This will allow logistics companies to allocate resources efficiently, plan transportation routes and optimise inventory levels, which results in a significant reduction in the operating costs that presente a management challenge: fuel, labour and vehicle maintenance,” says Erick Martins (pictured), Solutions Consultant at Descartes Systems Group.

“For players in the sector, having a tool that offers predictability, while allowing them to reduce costs and overcomes possible hurdles in processes, is strategic and makes it an indispensable resource for the coming years.” Adding operational efficiency and improving customer experience. “The application of AI to logistics operations is a trend that should expand the frontiers of the sector in the coming years,” he adds.

The implementation of automation solutions in the areas of logistics and supply chain opens up a new world of potential for companies as they allow them to work with large volumes of data, analysing it in real time, spotting trends and anomalies – and making decisions that result in tangible business benefit.

Here, therefore, are four reasons to incorporate AI and machine learning-based connectivity tools:

1. High return on investment by reducing mileage, fuel consumption and driver time, thus increasing productivity. Thanks to machine learning techniques, more deliveries can be made with fewer vehicles, resulting in significant savings. These improvements not only affect the operational aspect, but also have an impact on the administrative processes of logistics, including customer service, customer retention, availability and visibility for all departments involved.

2. High availability combined with security. The Software-as-a-Service (SaaS) model is a trend that is increasingly being adopted by businesses. This approach eliminates the need to acquire, install and maintain software, as it only requires the payment of a monthly fee that allows access to various functionalities that are always updated and in compliance with current regulations.

3. Integration into a single system. Integrating all platforms with a single provider offers several advantages, such as the ability to prioritise tasks according to their importance, including route planning, last-mile execution, and delivery confirmation. The route planning tool combines information on customer restrictions, vehicles, service windows, and routes, as well as the definition of rest stops and other details that allow you to create an optimal route.

4. Global visibility of traffic (both customer and order). Today’s technology offers real-time visibility into trucks, routes, orders, and customers for all functions of every organisation. This makes it possible to compare what is planned with what is actually being executed, identify driver locations and evaluate their performance. In addition, analytical tools can be used to generate reports and dashboards, facilitating route management and adjustments.

“Given the speed at which the segment is growing and the increasingly demanding needs of consumers, AI will soon be part of a strategic approach within companies with the aim of optimising efficiency, improving service quality and maintaining competitiveness in a market as dynamic and agile as logistics,” concludes Martins.

Conclusion

The implementation of AI in logistics operations represents the next crucial step in the modernisation and optimisation of processes in this sector. With its immense potential, AI will be an indispensable tool defining the future of transportation and logistics. However, integrating these tools into existing systems and adapting processes to maximise their benefit is key.

It is essential to be willing to adapt, acquire new knowledge and skills to be prepared for the changes that AI will bring. Its strategic adoption will allow businesses to stay competitive and meet the demands of an ever-changing and evolving market.

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