Quantifying the Impact of COVID-19 on the Supply Chain
COVID-19 has and continues to have a huge impact on shipping, with manufacturers, freight forwarders, and ports negatively affected.
Firstly, this can be seen in the higher overall port congestion levels our data has shown. Countries under lockdown have fewer workers in ports and restricted movement across the country, resulting in delays.
While demand in New York has dropped, other countries shipping essential goods have seen an increase instead. For example, port congestion in Yantian, China, has increased by close to 3 times from February 2020 to April 2020. This is likely due to the mass exports of essential goods from China to the rest of the world.
The delay effect is further compounded by the arrival of incoming containers and ports having reduced capacity or container storage space to handle cargo that is still stuck, as some retailers and manufacturers defer or delay the pick-up of their cargo due to worker shortages and warehouse closures.
Calls to Action
This pandemic has highlighted the need for shippers to invest in predictive analytics that provides insights essential to mitigate supply chain disruptions.
With dynamic updates on missed transits, rollovers, arrival notification, and port congestion, shippers can make decisions proactively and avoid inefficient costs due to detention and demurrage, expedited freight, and buffer stock.
Furthermore, dynamic routing options in case of cargo stuck in transit or a congested port can enable shippers to have better discussions with shipping lines and forwarders and not feel helpless.