How can you prepare to be Ready for Global Logistics in 2022
2021 was a challenging year for the world of Logistics in chennai due to continuous fluctuations. We worked with our customers in navigating this year’s Suez Canal block, hurricanes and cyclones, port closures and terminal closures because of COVID-19 outbreaks as well as changes to customs and trade as well as labor shortages.
I’ve been in the business since 1997 and have not seen this kind of continuous disruption throughout every aspect of the supply chain over such a long period of time. With this year’s turmoil, I also was offered a first-hand view of an entirely new level of collaboration, with people who go out of their way to assist one another, more strategic meetings between forwarders and shippers and constantly analyzing historical data and market data to develop better solutions.
As we get ready for another unstable year, I’d like to outline some ways for shippers worldwide to take into consideration.
Table of Contents
Find innovative solutions across all supply chains
In the year-end period, we usually witness a surge in demand because shippers have to meet the quarter-end quotas as well as prepare for the forthcoming Lunar New Year, during which numerous factories in China have been shut down. In the beginning of 2022 shippers will be dealing with delays that could result from events like the Winter Olympics which will be held in Beijing through February. This is all happening within a stretched market for supply chain services that may take some time to settle.
In the process of planning for 2022, think about various trade lanes, modes of transportation or inland transport strategies you could implement into the supply chain. For instance, although it may not be possible to transport all of your goods via air, air transportation continues to be the most efficient method to replenish inventory, and so the prioritization of specific freights will help to keep your the cargo moving. In actual fact, C.H. Robinson runs on average 15-17 air charters per week across the globe for clients seeking to stay clear of the crowded ocean ports. We do not anticipate that this number to fall until the start of the year.
Furthermore, since the demand and prices are expected to remain high until the end of the year, less-than-container (LCL) transportation is an option approach to take into consideration. Typically the space needed for LCL shipping is easy to locate, especially in a limited capacity market because you’re only searching for a small amount of container space rather than the all-empty container. There are also significant savings in the cost of the speedy LCL services in comparison to today’s airfreight market.
Remember, LCL cargoes aren’t likely to alleviate congestion at ports and therefore, inland strategies have to be thought of. In the present, many ocean companies are seeking to transport larger amounts of IPI (interior port intermodal) cargo instead of focussing on port-to-port. We were able boost shipping of goods in inland for our clients by sending larger 53-foot containers, so that cargo from smaller containers of 40 feet can be effectively consolidated into the larger ones, and loaded on trains or trucks that can be transported to the inland areas more efficiently. In the end, this increased our capacity for containers by 25 percent for Southern California.
As you will see, focusing on only one part within the supply chain just one route will only take you to a certain point. It is important to think about all aspects to ensure that your cargo is moving.
Make use of data and technology in logistics
Even though this year produced a number of unusual scenarios, and 2022 could be similar, past data is still able to help us to find solutions. The identification of common themes and trends in your data cyclical can provide you with the information you need to make better decisions about you supply chain.
In addition, the right technology tools will give you the transparency and control you need to make adjustments. In the case of ever-growing congestion in ports and delays, C.H. Robinson improved the vessel tracking and routing functions within our system for transportation management, Navisphere(r), to improve the efficiency and accuracy of port ETAs. It also allows us to automatically notify us of changes if they were found. This is vital since ocean shipping is just one aspect of. Being able to monitor developments in real time gives our staff and our customers the chance to respond and adapt other strategies further down the line.
Take a look at global trade opportunities
As shortages and congestion continue across all modes of transportation One area in which there are opportunities for savings is the global strategy for trade. Because every country’s policies on trade are different and subject to be subject to change, it’s essential to meet regularly with your trade advisor in order to get a handle on the complex nature of your total landing costs, which includes understanding your import costs, determining opportunities for duty recovery as well as decreasing your exposure to duty through trade agreements.
Our team, for instance, has assisted shippers in identifying thousands to billions worth of tariff rebates. If you are importing into America, U.S., you can quickly check for savings and refunds by using the online tool for traffic searches. If you’re purchasing from outside the U.S our team can help you prepare a sourcing report that is customized to your needs with potential cost savings or ways to avoid them.
Final Thoughts
Although there isn’t a universally applicable method, these options give shippers ways to minimize delays and pinpoint savings when we begin another year that could be unpredictable.
Shippers have needed to become increasingly agile and well-informed in the last year, and as we move into 2022, it’s crucial to stay flexible, open to new options, and keep up-to-date about the most recent market trends.