International Forwarding Association Blog »
Lockdowns and social distancing protocols led to a significant drop in purchases in 2020, followed by growing demand as countries began to reopen economies in 2021. Carriers, forwarders, and businesses have tried different solutions, from outbidding one another for containers to chartering ships and buying their own containers. This is what the Swedish giant Ikea and U.S. brands Home Depot and Walmart have done to address product shortages in the short term. So what can be done long term? Shipping by Railway Giants like Ikea have been shipping cargo by railway from China to Europe, using temporary warehouses for storage… Read more
A year and a half since the pandemic started, shipping cargo from China to Europe now costs 6 times more than it did back in 2019. Surging costs have only made the situation worse, adding to existing problems such as the high cost of raw materials and the global semiconductor shortage. There is only a 5 percent increase in demand for shipping worldwide, with contraction partly due to the rise in Covid-19 cases. In addition to low demand, there are other factors causing strain on the maritime supply chain. Container Turnaround Times The turnaround times for ships, trailers, and containers… Read more
The global logistics crisis is not solely caused by a spike in consumer demand but it is a factor that can’t be overlooked. When the pandemic started, shipping fell due to uncertainty how lockdowns and social distancing measures would affect consumer demand. Crew safety has also been a source of concern. Then the situation changed on a global scale as consumers were forced to limit their spending on dining out and travel. Many shifted to digital. They began buying electronics, home and office equipment, vehicles, and other goods to make lockdown life more bearable. Trends With commercial vessels… Read more
Refrigerated containers or reefers are used to ship perishable goods such as flowers, dairy products, meat, seafood, and fruits and vegetables. Carriers also use temperature-controlled containers to transport frozen and chilled goods, photographic film, and pharmaceuticals. If not shipped at appropriate humidity and temperature, such cargo might spoil quickly during transit. Reefer Design Reefers have one or more temperature chambers and a generator to maintain the right temperature regardless of weather conditions. Depending on the type of cargo, the temperature ranges from – 35 °C to 35 °C. As they are used for refrigeration transport, cooling gets done… Read more
Commercial ships are responsible for about 1 billion tonnes of greenhouse gas emissions on an annual basis or 3 percent of total emissions. Experts explain that if vessels were a country, it would be the world’s sixth biggest polluter. Unless urgent action is taken, shipping greenhouse gas emissions are forecasted to reach up to 130 percent of their 2008 levels in just three decades. 1997 Kyoto Protocol The Kyoto Protocol set targets for industrialized economies and nations to reduce their carbon emissions and slow down the onset of global warming. While targets vary by country, the US committed to… Read more
The 2021 Seafarer Workforce Report released by the International Chamber of Shipping and the Baltic and International Maritime Council on Wednesday warns about a possible shortage of sailors to staff commercial vessels over a five years period. Steps should be taken to increase numbers and ensure the smooth movement of cargo across the globe. The proposed measures are increased recruitment and training to boost the supply of maritime crew by 2026. The Crisis Is Looming At present, demand for maritime crew is estimated at about 1.45 million, including some 790,500 officers. There is a supply shortage of about 16,500 officers… Read more
2020 was a difficult year for most sectors, and the shipping industry is not an exception. A year and a half into a global health and economic crisis, freight forwarders face a number of challenges, from marine insurance claims and risk of cargo damage to machinery breakdown and delays of servicing of equipment and vessels. Servicing of Merchant Ships With physical distancing protocols and lockdown measures still in place, delays of servicing of emergency equipment and merchant ships could endanger crew and offshore staff safety. Ship yards and ports already face delays due to staff in quarantine and shortage of… Read more
A series of events is driving global trade to a breaking point, from cyber threats at major South African ports to natural disasters in Germany and China and a new wave of Covid-19 and cases rising worldwide. According to shipping experts, economists, and businesses, the effect is an interrupted flow of consumer goods, parts, and raw materials. The Delta Variant The new Delta variant of Covid-19 has already plagued parts of Asia, forcing many states to restrict land access for seafarers. Some 100,000 sailors are currently stranded onboard as captains are unable to rotate crews. Industry insiders warn that we… Read more
Global vaccinations of crews are not going fast enough to prevent outbreaks onboard vessels, resulting in trade and supply chain disruptions and endangering the life of seafarers. The fact that vaccinations are going too slowly is potentially slowing economic recovery for countries trying to pull out of a deep, pandemic-induced recession. Effect on Supply Chains Outbreaks onboard ships could have a significant negative impact on global supply chains now that Europe and the U.S. are heading for recovery and businesses are stocking up for the holiday season. Industry experts warn that supply chain disruptions are likely to occur as some… Read more
Distri24 is the new distribution division, composed and implemented by Corneel Geerts Transport Group and operating since April 2021 via its depot (Hub) in Venlo. It is a parallelized freight distribution network with a fast and reliable national coverage, serving a wide variety of customers. The service is provided in collaboration with local partners for the Netherlands and Luxembourg and has its own logistics infrastructure. The transports between the logistic branches are carried out overnight to save time. The size of the shipments can vary from one pallet to several. Distri24 guarantees delivery within 24-48 hours in the Benelux, depending… Read more
The congestion caused by a recent outbreak in Southern China has been expected to impact air freight in summer. Yet, despite predictions that the chaos at major ports would cause a modal shift from sea to air, the volume of converted orders has only slightly increased. Experts are not really sure why this is happening but it can be high air freight rates that are causing drop in demand. Reasons for High Rates About ¾ of freight capacity was removed in 2020 due to a significant reduction in travel. Demand for personal protective equipment skyrocketed, resulting in record high… Read more
The freight transport industry has suffered significant supply chain disruptions due to the ongoing global health crisis. Intermodal transport in Europe, including truck carriers and railroad shippers, has been affected. Ports around the world have seen a reduction in cargo volumes due to uncertainty. Parcel delivery companies have been the least affected as they face less competition from cargo transported by air. Now due to a new outbreak in China, a shipping crisis is looming. Effect of Supply Chain Disruptions before the New Outbreak in China Disruptions are set to continue throughout 2021, possibly resulting in Christmas shortages. The industry… Read more
With global warming, supply chain networks face considerable risks due to climate disasters, severe weather, and the threat of future pandemics. When wildfires rage, ice covers the roadways, and high winds howl, many businesses are forced to shut down operations. Supply chains have to do the exact opposite and find alternative ways to ship commodities. Consumers expect small shipments to arrive on time even in harsh weather. What is more, shipping cardo is even more important during severe weather and climate disasters when essential goods are blocked in affected areas. As threats are constantly evolving, the shipping industry must find… Read more
Logistics companies are increasingly faced with a shortage of commercial truck drivers due to a combination of global economic downturn, Covid-19, and the Brexit. Driver shortages have been a global problem even before the start of the coronavirus crisis but recent studies predict a 25 percent increase across all EU member countries. A combination of factors that industry experts have been warning about for a long time, driver shortages have resulted in a situation where European logistics companies and businesses find it increasingly difficult to move goods to shelves on time. They are also increasingly facing higher operating costs for… Read more
Dry bulk and tanker shipping for outbound and inbound trade to India have become expensive due to the recent coronavirus outbreak in India. The country is one of the major exporters of dry bulk commodities and refined products such as salt, steel, pellets, and iron ore. India also imports significant volumes of crude oil, vegetable oils, and coal. Yet, countries around the world have barred ships from berthing at their ports if they arrive from India and have called any Indian port during the last 2 – 4 weeks. For this reason, some shipping companies are seeking premiums for discharging… Read more
2020 has been a challenging and difficult year for global populations. The changes in how we live, work, and connect with others have been fundamental, with a shift to digital and the proliferation of Internet commerce. Other areas such as economic growth and fighting global poverty took a step back. The logistics industry has been one of the most impacted by the global pandemic, and some interesting trends have surfaced. From contactless deliveries and omnichannel services to green logistics, demand for refrigerated goods, and robotic process automation, here are some of the trends to watch for. Contactless Deliveries and Omnichnnel… Read more
Warehouse automation is a major trend amidst a coronavirus pandemic that already entered its second year. The resulting global recession and lockdowns across the world brought industrial activity to a near halt. As manufacturers began to gradually reopen and resume operations, forwarders throughout Europe found themselves faced with multiple challenges – e-commerce logistics, a growing demand for essential commodities, restricted mobility, and social distancing. As a result of all this, logistics providers have been forced to seek ways to optimize resource use, shorten loading and shipping times, and increase productivity. Many companies turned to warehouse automation in an attempt to… Read more
It is a strong name in the Norwegian Transport and Forwarding industry, which in 2021 looks back on 75 years of operation. We are quite proud, still being a family owned business in a market consisting of major constellations. Nevertheless, the Hakull-group is a strong brand looking back on 75 years. Today owners are Gudmund Hakull (73), Kjartan Hakull (50) and Lena Hakull (47). The financial situation in the group is solid. Total turnover last year passed € 55 Million Tallak Hovstad (55) is another key person in the Group. He started in the company back in 1996…. Read more
The number of coronavirus vaccine shipments is steadily increasing as rollout begins in more countries and more products become available. While the jabs are mostly transported by land and air, ships are also expected to join the race against the global pandemic. According to Financial Times, ships will get involved in vaccine distribution so that shots reach healthcare professionals instead of piling up in warehouse facilities. Why Use Ships? According to European logistics experts, vaccine supply and distribution is expected to exceed air freight capacity by the middle of 2021. Because of the surplus of jabs, the supply chain will… Read more
Every stage of the global supply chain is facing a shipping crisis and forcing forwarders to make significant changes to their operations. Covid-19 lockdowns and restrictions have already resulted in additional operating expenses for businesses and reduced customer satisfaction. The main issue is the higher freight rates due to the difficulty of booking shipping slots, especially on certain dates, with many deliberating on keeping safety stocks. This strategy allows them to build extra time and use raw materials between deliveries. Some plants have even taken downtime due to shortages of raw materials. Others, especially in China, shut down temporarily because… Read more
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