English Channel Supply Chain Delays threaten Christmas
19th November 2024
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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