Month: July 2022

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Top 8 Technology Trends of logistics and supply chain management

emerging-trends-in-logistics

The constantly increasing global demand for autonomous solutions has increased the investment rate in supply chain technologies to a great extent. With the changing trends, the supply chain leaders now perceive technology as a competitive advantage as it would help in bringing long-term value to the organizations. For instance, freight businesses are taking a step forward in adapting technology trends in logistics and supply chain management.

In the post-Covid world, the supply chain leaders need to adapt and follow a mindset that seeks to exploit the benefits from the digitalization and disrupt the current operating supply chain models. Therefore, following the top most supply chain technology trends is now a critical factor towards embracing and moving towards long-term change. 

emerging-trends-in-logistics

Supply Chain Governance and Security 

With global risk events constantly rising, the breach of security impacts organizations on a digital and physical level due to which supply chain governance and security has now become an increasingly impactful macro trend. Therefore, it is important for privacy as well as data and cyber security in order to sustain the advanced tracking and tracing solutions, smart packaging, and next-gen RFID and near field communication capabilities. 

Edge Computing and Analytics 

The demand for automated decision making and processing on low-latency is done via edge computing as its growth corresponds with the devices for proliferation of Internet of things (IoT). Making its way into the manufacturing industry, the processing and analysis of data in edge computing is done near the source or collection point. Over time, most organizations are moving towards driverless forklifts for the warehouse as the heavy equipment sellers use edge computing to detect in case any part needs to be replaced. 

Artificial Intelligence 

Consisting of a toolbox with various technology options, artificial intelligence (AI) helps the organizations in understanding all the complex content, improve human performance, engaging with people and handling the routine tasks. With artificial intelligence in hand, supply chain leaders can effectively solve challenges existing around data silos and governance. Through AI, the visibility and integration is improved through all the networks built across stakeholders that used to be remote. 

Hyper-Automation 

A framework designed to mix and match various technologies to the best of its interest, hyper-automation enhancing the historic legacy platforms with newly developed and advanced tools and planned investments. The term may have a different meaning for different organizations, if used and implemented correctly hyper-automation can help in broader collaboration amongst various domains so as to work as an integrator. 

Digital Supply Chain Twin 

Derived from all the possible relevant data through the supply chain and the operating environment, a digital supply chain twin (DSCT) helps in representing the physical supply chain. It is a digital theme upon which all the local as well as end-to-end decisions are based and helps in describing the constantly increasing connection between the digital and physical networks. With DSCT, organizations can enhance and improve situational awareness in both aspects. 

Continuous Intelligence 

Continuous intelligence is considered as one of the best opportunities for supply chain leaders to enhance and accelerate the digital transformation for their companies. It leverages the data processing ability of a computer to improve, compared to humans. Through this the supply chain leaders can look into the data being processed in order to identify and take actions actively as per the analysis. 

5G Network 

The 5G networks are a huge step forward due to the capabilities of its processor to enhance data speed. Due to the pervasive and all-rounder nature of 5G networks, the potential of its supply chain is also boosted, which helps in minimizing the latency and improving the real-time visibility and internet of things (IoT) capabilities for the company. 

Immersive Experience 

With the potential to fundamentally influence the trajectory of the supply chain, immersive experience is based upon virtual, amplified and mixed reality. The human capabilities are augmented by the new interaction model as the organizations see the benefits of bringing on-board new employees via immersive experience and training to build up a safe and reliable virtual environment. 

Nonetheless, while operating on a larger scale the visibility on a micro-level is sometimes blurred out for companies, which is why opting for supply chain technology trends can help the organization enhance its process and build a closer relationship with its customers.

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Importance of Packaging for Ocean Freight Shipping.

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Importance of Adequate Packaging in Ocean Freight Shipment 

There are some fundamental reasons as to why proper packaging is so important for ocean freight shipment. 

  • Not only does the good-quality packaging protect the cargo from any damage, it also reduces the chances of theft as a well-made packing would make it really hard to be concealed. 
  • Depending upon the nature of customs requirements, there are several methods to protect your shipment from water or humidity. You can either use a basic water-resistant lining or a sealed vacuum bag along with waterproof membrane. 
  • While transporting multiple items in a single shipment together would reduce the chances of anything being lost on the way, it may cause physical damage or breakage. Hence, packing all the material inside the crate before putting it together can ensure that every item remains in its place firmly. 

Damages that may occur in Ocean Freight Shipment 

The cargo may suffer physical damage or breakage in case subjected to poor handling or exposed to uncontrollable movement that may be caused by air turbulence. The damages may also be a result of poor stacking; it could be due to placing heavier craters on top of the lighter ones or because of incorrect securing method. Therefore, the more robust the packaging would be, the better protected the goods will be. 

Most of the products being shipped are vulnerable towards humidity or water due to which there is a chance of it being damaged before being delivered to its destination. One of the most common issues of ocean freight shipment is the cargo being left outside through its journey at some handling facility. Though, there are several ways through which you can protect your goods from being exposed depending upon the individual customs requirement. 

Labeling and Padding of the Cargo 

Workers at the dock or the airport may not be aware of what commodity is inside the cargo that they are loading or unloading. Hence, it is always important to add labels on all sides of the crate for visibility and specify how the cargo needs to be handled. Make sure to add labels like; “handle with care”, “do not double stack” etc. so that the workers know how exactly they are supposed to handle the pallets at hand. 

It is always important to consider where the ocean freight shipment will be going and on how many levels it will be in contact with people so as to calculate the risks and avoid them accordingly. Packaging is not merely about securing the pallet, one needs to think of all the possibilities to ensure that the freight is delivered safely.

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5 important Tips to resolve import related supply chain issues

Import is a crucial part of the supply chain industry for many businesses in every country. Over the years, the number of import businesses has grown drastically causing the import related supply chain issues to rise along.Considering the fact that import business can turn out to be extremely lucrative many people are inclined towards being an importer, however, only a few of them become successful in this area. 

Now, the question arises is why is that so? Well, as beneficial as it is, importing goods is a bit technical as well. It is essential to make sure you plan out the entire process perfectly and avoid any hiccups so that your goods don’t get stuck at any point through the process. If you are in search of the basics of how to make your import business successful, you would need these 5 essential tips for sure. 

Make sure to establish the Right Team 

During your work, you will be dealing with two groups of people including the clearing agents and your commercial team. Importing is a group work in which even if a single person lags behind the entire process will slow down and affect the work flow. 

During import, customs clearance is a mandatory step before the freight officially enters its destination region. Here the clearing agent will be responsible to facilitate the customs clearance process and make sure all the formalities are being followed as per the regulations. Therefore, it is important that you hire a qualified and experienced clearing agent so that you can avoid any delay or problems during the process. 

Moreover, the commercial team is responsible for the commercial invoices, packing list, and letter of credit in order to ensure a smooth customs clearance process. It is extremely important for all these documents to be completely accurate as slightest of the errors may end up affecting the cost or duration of import. 

Know all your Shipping Routes 

The route for importing goods between countries is sometimes straightforward, whereas the indirect routes are a bit more complex and may take up more time. Hence, it is important for you to be aware of the route that your freight will be taking so that you know whether there would be delay in delivery or not. 

Moreover, in some situations during the shipment being moved from one country to another it may pass through the route of a third country in between. In some countries, the goods (even though not being sent to them) are to be checked and charged for at their terminal. Hence, it is important to do your research and know of all such laws in order to avoid any unpredicted additional cost or delay. 

Be-aware of the Demurrage or Hold-up Policies 

Once your goods have arrived at the receiving terminal or airport, it is allowed to stay there for a certain allotted period of time. In case the shipment is not removed even after the ‘free’ period ends, a demurrage charge is placed by the operators on your freight regardless of the reason for this delay. 

Therefore, it is extremely important that you are aware of all the hold-up policies of your destination airport before the shipment is delivered so that you can avoid any hassle. The demurrage charges may be applicable on the basis of the size of container or on per day due to which it can cost you a high amount if not removed as soon as you can. Luckily, it is not that difficult to do research over the demurrage charges as these details are mostly available on the government websites of every country. 

Find out the Packaging Requirements 

In order to make sure your goods are delivered safely without any damage, it is important that they are packed the right way at the point of origin. The goods may be subjected to extreme weather conditions or be harshly loaded, stacked, pushed and dropped which is why it is crucial to ensure that the shipment is packed as per the requirements. 

Air shipments usually need a lighter packaging as compared to sea shipments. Moreover, it is better to pack it on the standard pallets so that it can be handled easily. Nevertheless, import businesses need to keep a track of the packaging rules and requirements of the country they are importing goods to. 

Check for all the Banned Goods 

Before sending any freight, it is your responsibility to check and ensure that the goods being imported are not banned or prohibited in the destination country. For instance; wine can be imported in the US or Europe as it is not banned there, but it cannot be imported in any Muslim country due to the rules. You can still import certain banned goods if you manage to obtain a written permission in case you meet the conditions and requirements provided by the government of the destination country. In case you are caught trying to import goods that are banned without permission, your goods will be seized and you may have to face penalties. 

Nonetheless, the best way to be successful in importing is that you do your research and make sure that you abide by all the rules and regulations for importing goods so as to avoid any hiccups and delays in getting your shipment delivered on time. It is crucial to be cautious and well-versed in order to make your import business grow. 

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Importance Of Climate Controlled Warehouses for Storage and Logistics.

A warehouse is a large, open space where there is constant movement of goods, quite naturally causing the temperature of a warehouse to fluctuate unpredictably. Climate controlled warehouses help in managing environmental disparity as it keeps a moderate temperature while all the operations are carried forward. However, a lot of the industries overlook the importance of climate control in a warehouse which results in unexpected expenses incurred later, as damaged stock, necessitating the need of a climate-control system.
warehouse must be adequately insulated. Let’s look at some facts concerning climate-controlled warehouses that are not only functional but also ensure product safety through out logistics. 

Why do Warehouses need a Climate Control StorageSystem? 

Climate controlled warehouses focus on two major factors: the temperature and humidity of the warehouse. One may already be aware of the obvious effects of inconsistent temperature over food and medicine. However, there are a lot of other goods as well that may be damaged if not stored under a controlled climate condition. 

Humidity can damage metal objects as they can expand or contract because of the constantly changing temperature. Therefore, neglecting the necessity of climate-controlled warehouses may cause the products ina storage to melt, decay or grow mold. Furthermore, workers working in a warehouse in the absence of a climate controlling system may suffer from a heat stroke or even end up with frostbite. 

This poses the question, how do you keep your goods as well as employees safe during the constantly changing temperature? The answer is quite simple! Installing a climate control system in your warehouse will help in running your warehouse efficiently through extreme climate conditions. 

climate controlled warehouses

Elements of Climate Control in a Warehouse 

There are various techniques that can be employed to stabilize the temperature and humidity of a warehouse. For instance:  

  • By planning out the structure of shelves and pallets, the airflow can be managed. Moreover, sealing strips help a great deal in restricting the airflow entering via door openings. 
  • Dehumidification can be used to control humidity and prevent the build up of condensation and moisture in products stored in your warehouse. 

Waterproofing the warehouse will prevent the goods from becoming too dry and adds another climate control measure. 

  • In order to make sure the workers in a warehouse are at an optimum temperature along with the goods, portable air conditioning or heating can also be used which would help stabilize the temperature of the warehouse. 
  • Microprocessors can be installed in order to ensure a digital method for temperature monitoring and control. 
  • In order to be more cautious of any damage that may occur, different methods of signals for temperature shifts like audio or visual alarms can be installed. 
  • Any product that is stored on the floor is more likely to lose heat and get damaged, it is always better to use pallets and keep your goods away from direct contact with the ground. 
  • You can also consider installing industrial ceiling fans as they would help in better air circulation in the storage area. 

These tips and ideas may come in handy when you are planning to run a warehouse and wish to keep your employees, inventory as well as equipment secure in every climate condition. With these methods and elements, you can run your warehouse efficiently and safely without having to face any damage. 

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AIR CARGO SUFFERS AGAIN AS CHINA GOES BACK TO LOCKDOWN AND BECAUSE OF RUSSIA-UKRAINE WAR

Ever since the beginning of the COVID pandemic, the air cargo situation around the world remained unstable, however, as time went by, things started to get back on track, but unfortunately, it wasn’t long before the Russia-Ukraine war started and, at almost the same time, Covid-19 also made a resurgence in China. The impact of the Ukraine war on supply chain companies and related operations turned out to be very alarming. In March, the air-cargo volumes were affected highly due to the ongoing situations, raising a lot of concern for the cargo industry and the overall global supply chain stability. 

The volumes of air cargo fell 4.5% in March, and the capacity fell by around 4% due to the Russia-Ukraine war. Supply chain companies had to cope with the constantly rising rates that peaked at 27% compared to the previous year.

Russia Ukarain War

WHAT DO THE AIR CARGO EXPERTS SAY REGARDING THE CURRENT SITUATION?

Air Cargo expert Niall van de Wouw (currently, Chief airfreight at Xeneta) said that overall cargo markets saw a huge step back this March, especially compared to last year’s situation and this year’s early situation he reminded everyone of how little the Airfreight market had control over the current operations, and how nobody has any idea how things will play out in the future. 

He further added that the disruption in Air Cargo has severely impacted the passenger traffic trends, trouble in the geopolitical procedures, and the ocean freight market.

CURRENT SITUATION IN CHINA

As the world has started to open up again and the pandemic has started to fade, China faces a resurgence in the covid cases as the number rises to over 26,000 cases a day! highest ever since the pandemic first started back in 2019.

Due to the restrictions and lockdowns, China’s most crucial ports are unable to function properly which is proving to be quite troublesome for the global airfreight operations, pushing forward as much as 50% of air freights in a few cases. 

As a result of that, the rates of airfreight have skyrocketed ahead of the Lunar New year holiday in China. Most of the shipping has either been postponed or suspended by the companies, making matters even worse. 

Regardless of the loss and disruption, dues to the closure of key ports and economic hubs, China has remained firm in its policy of curbing Covid to its core, maintaining a “No Tolerance” or “Zero Covid” policy to combat the pandemic. 

In a statement, Chairman of supply chain risk intelligence firm Supply Wisdom Atul Vashistha said that; The ports that are still open and operational, the workflow there is drastically slow due to all the precautions and restrictions.

EFFECTS OF THE RUSSIA-UKRAINE WAR ON THE AIR CARGO

The Russian invasion of Ukraine has obliged the carriers to take alternative routes which are too long compared to the traditional routes, utilizing more fuel that results in increased service rates as well as cuts down the volume of shipments from the cargo companies.

German Logistics company DB Schenker released a statement that discussed the impact of sanctions on Russia; “Sanctions on Russian carriers and the closure of Russian airspace, as well as the instability in the entire region, is causing major issues for the cargo operations and creating instability in the market”

The Closure of Russian Airspace saw a direct impact on Europe as well as Northeast Asia where a 20% decline was recorded. Between March 21 and 27, Japan-to-Europe spot rates soared almost 50% higher compared to the prices before the war.

CONCLUSION

The current situation is quite unsettling for the cargo, logistics, and supply chain experts. The reemergence of Covid-19 cases in China is really worrisome for the cargo operations, the ports which are the economic hub of China are almost non-functional or operating at a very slow pace, hence affecting a wide range of countries spanning regions such as Asia, North America, Europe, and Australia.

On the other hand, The Russian Invasion of Ukraine has raised a lot of concerns for the present as well as future Air cargo operations. As the two countries continue to stay on their toes and show no signs of backing out, the world would have to bear the consequences in terms of hefty freight rates, longer delivery time, and insecure pathways.

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What is neo bulk cargo?

bulk cargo

What Are Bulk Shipments?

Bulk shipments are a type of mass shipping in which large amounts of goods are loaded onto container ships without being packaged. These shipments are typically transported on deck and in the hold of a ship in large, metal cargo containers. They travel long distances across the ocean and must be physically fit to do so. These shipments are most definitely not suitable for just-in-time inventory shipments. Neo-bulk cargo is a sub-category of general cargo or bulk cargo that exists today in the main categories of bulk cargo and container-based cargo in the ocean shipping trade.

The use of RoRo carriers, on which vehicles are driven or, as the name implies, substances are rolled on and off, is a common method of shipping neo bulk cargo. However, because cargo is not transported on crates or in confined shipping containers, chocking systems are usually used to secure shipped vehicles and prevent movement.

Items commonly shipped as Neo Bulk Cargo:

Automobiles, Trucks, and Trailers Construction Machinery, Excavation Machinery, Farm machinery, Logs, Steel Frames, and Scrap Metals

What Is the Process of Neo Bulk Shipping?

Transporting goods in bulk is similar to standard shipping methods, but this needs to be done correctly.

●       Transportation to and from port storage.

Bulk goods are always retained in the ports from which they are shipped. It means that your goods are stored in a facility or on the waterfront in a shipping container until they are shipped.

●       Loading cargo onto a ship.

The container is loaded into a large ship’s hull or deck. The work is accomplished with the help of a large crane, and each cargo vessel can retain thousands of twenty-foot containers.

Unloading at the final destination.

The process is repeated at the destination, and your items will be transferred onto trucks for final stretch delivery.

Neo Bulk Cargo comes in a variety of sizes.

There are numerous types, including:

1.    Automobiles (cars, trucks, trailers, etc.)

Vehicle shipping has become more efficient and effective since the creation of roll-on/roll-off (RoRo) carriers. No need to empty the fuel tanks or unplug the batteries, though, since RoRo carries have special built-in inclines that allow the vehicles to be forced directly into the ships. There is also a choking system to keep the car from moving during shipping.

2.    Heavy equipment

Construction and earthwork operations require specialized equipment, such as a steam or gasoline engine.

3.    Livestock

Sheep, goats, cows, and other livestock are transported on modified vessels known as livestock carriers. Feed, water, and medications, among other things, should be carried. Cattle can be loaded onto the open decks of open livestock hauliers or the internal decks of closed farm animal carriers. Medium-sized vessels can transport between 30,000 and 40,000 sheep.

4.    Paper and newsprint

The special boat is intended for the transportation of paper or newsprint. It usually has side conveyors and smooth welds on the board.

5.    Logs

Log carriers have a unique design that maximizes log capacity. The logs’ tips frequently exceed the ship’s deck and glide on the water.

The Benefits and Drawbacks of Port Neo Bulk Shipping

The main advantage of shipping neo-bulk cargo by sea is the massive capability of neo-bulk carriers, which allows them to load a wide range of vehicles or machinery. It will take less time and cost to transport the same weight of neo-bulk than air or land delivery. Furthermore, ships provide a carbon-efficient mode, so they have lower carbon footprints than other modes of transportation. Several disadvantages of marine transportation include the significant risk of shipments because it is difficult to anticipate the sea state and, if an accident occurs, it will be hard to overcome the remainder of cargoes from the sea.