Quantifying the Supply Chain Logjam.
Staggering supply chain statistics show us how bad conditions currently are.
Massive supply chain congestion dominates worldwide news. These issues aren’t just regional or national, they’re severely impacting global transportation processes. Several compounding issues maximize the effect, congesting every single node. E-Commerce demand is ever-surging and that increasing pressure is felt at every supply chain step. Not only did the COVID-19 pandemic increase e-commerce sales dependency, but it also depleted the supply chain workforce. Many people, using stimulus funding, began purchasing tangible assets - electronics, upgraded furniture, fitness materials, and many other home-improvement items rather than vacations, movie tickets, restaurant dinners, and other “experience-based” purchases.
Staggering statistics help us understand where the supply chain issues lay, and also where potential opportunities exist.
Labor shortages are certainly a major inhibitor, maximizing the ongoing logjam. U.S. ports fight 30% increased traffic using 28% less labor. 111 container ships, a record number, floated outside Los Angeles and Long Beach ports on November 9th waiting for unloading. Managing and directing cargo becomes even more chaotic with lessened labor and increased cargo. Cargo is often misplaced and scattered, creating an even larger mess. Necessary reorganization slows the unloading process as port employees locate designated cargo, load, and re-load trucks.
What can you do? Increase load transparency and visibility. Utilize technologically-focused solutions and know where your cargo is and when it will arrive .
LABOR SHORTAGE – TRUCKERS
An intense driver shortage might be the largest issue the supply chain faces according to Moody Analytics. The driver shortage has historically strained supply chain professionals (nearly a decade), and this increased post-pandemic demand has worsened the overall labor shortage felt worldwide. Efficient fleet management is integral to transportation success and overcoming these industry challenges. Schneider CEO Mark Rourke said, “For every order that Schneider is accepting today we could do one more”, with increased labor. He elaborated, saying, “truck drivers are the heroes” not having the ability to work from home and that Schneider needs to double their “person-power” just to meet current demand.
What can you do?: Plan ahead, increase your driver network, and streamline the booking process. BookYourCargo utilizes a trusted network of over 1800 carriers to optimize your transportation timeline.
Once ports successfully unload cargo, the next logjam they face is a severe chassis shortage. The chassis transports shipping containers from ports to distribution centers or other facilities. Chinese-built chassis dominated chassis sourcing in the past, however, tariffs have nearly eliminated Chinese-produced chassis, significantly limiting the transportation industry’s options. U.S. chassis manufacturers battle their own issues, struggling to meet long-back ordered orders. Equipment providers discovered that refurbishing old and damaged chassis was both faster and cheaper than manufacturing new chassis, however, repair shops lack labor and much-needed materials. Dwell times, where chassis sit dormant waiting to be unloaded, also worsen available chassis allotment.
How bad is the chassis shortage? There are currently 3,240 chassis needing repair at Los Angeles and Long Beach marine terminals.
What can you do? Streamline your booking process and utilize BookYourCargo’s network of 1800+ trucking partners that expand your available chassis pool. Order ahead and minimize delays.
LIMITED WAREHOUSE CAPACITY
Once a chassis is sourced and loaded, the process finds its next bottleneck - warehouse space scarcity. Cargo has nowhere to go and nowhere to be dropped off. Recently, the Port of Los Angeles issued 500 citations for unlawful storage containers in residential areas.
What can you do?: Empower yourself with a larger network. BookYourCargo partners with warehouses nationwide to help get cargo out of ports and down the road.
What can be done? Problem-solving starts with issue identification. Increasing supply chain visibility is key to maximizing success. Digital solutions, like the Digital Drayage App, help increase shipper visibility. Digital solutions empower your decisions, leveraging both insightful logistics data and timeline predictability. Partner with BookYourCargo to not only increase transportation visibility but also utilize our massive trucking network to easily streamline your entire booking process.
No one truly knows when supply chain processes will meet demand. Supply and demand imbalances will certainly disrupt the supply chain through 2022, and possibly longer. Companies worldwide hope that the worst is over. Until the strain alleviates, increasing your network power and visibility will increase success likelihood. Increase your network power, increase your visibility, and increase your success.