MenuSeptember Update – Supply Chain
Following on from our August update, we believe that it is important to continue to brief you on events happening in the Supply Chain World.
We are doing this to provide you with relevant information and detail that may help you in forecasting or heading off supply issues as we enter the peak season of the year.
Like August the forecast is very similar:
- Port congestion continues to be a problem across the world. There is now a record number of ships lying of the Californian Coast, waiting to be unloaded.
- This will inevitably further exacerbate the container supply chain issues, leading to long lead times for availability of containers at origin ports.
- It would appear that some sense is prevailing where ocean freight rates are concerned and we may have seen the peak with some lines capping rates at current levels.
- While this is welcome it does mean that inordinately high rates are going to be here for quite some time.
- Air Freight capacity is tightening considerably with rates rising pro rata.
- Freighter services & Charters are seeing unprecedented demand and large volume shippers may squeeze smaller enterprises from the market.
- Brexit has had a very serious impact on overall shipping with some of our clients experiencing very significant delays due to carrier back logs.
- We have seen this in particular with courier companies unable to clear goods for several days and in some cases, weeks. We have a solution for this and can help when needed.
- The last few days in the UK has highlighted the very serious and continuing driver shortage. While the panic buying of fuel will pass the actual underlying problem will persist and, unfortunately, have huge impact in the short to medium term.
As said in prior updates, there is little good news to impart. Our continuing advice is that you should proactively engage with your Freight Forwarder as much as possible and avail of their expertise.
They know the Markets, they know the Carriers and they can help lessen the impact on your Business.
Contact us…
Hawthorn Logistics Solutions is here to help with any issues you encounter.
Please feel free to reach out to us through your normal company representatives or at