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The situation for refrigerated and dangerous-goods cargoes is even more extreme, thanks to a shortage plugs and storage areas at ports and terminals. Ocean carriers are limiting acceptance of inbound refrigerated containers and are implementing congestion surcharges, according to Casamitjana. Dangerous-goods shipments require pre-approval from carriers before containers are being allowed into terminals.
How, then, do you to cope with this situation? There are many aspects to this complex problem. Here are a few suggestions relating to logistics from the American Chamber of Commerce Shanghai.
- Confirm which suppliers are operational and understand their constraints
- Ascertain the availability of inventory and warehousing space
- Prioritize orders of critical components
- Understand and establish realistic timelines
- Book air and ocean freight as early as possible
- Investigate premium transportation options that guarantee space on vessels and aircraft
- Plan for transportation cost increases and delivery delays
China continues to ramp up production, but transportation limitations will make supplies harder to come. Resilinc, a technology company that models supply chain performance, recently increased its estimate of disruption to six months from its earlier three-month advisory. Resilinc CEO Bindiya Vakil cited “inventory shortages, lead time delays, and logistics and transportation concerns” as reasons for the new estimate.
Read the complete article from Peter Buxbaum at Industry Today>>