05 Apr Disruptions Are Modus Operandi For The Supply Chain Landscape
There is no doubt that 2023 has seen the logistics and shipping landscape return to what appears to be a state of normality. Freight rates across major trade routes continue to decline to pre-pandemic levels and supply chain bottlenecks have also predominantly been restored to pre-pandemic levels. However whilst all appears smooth on the surface, there continues to be the ripples of disruption underneath.
Whether it is carriers moving in different strategic directions due to competitive pressure, or carriers refusing to reduce capacity commensurate with reduced demand through to bottlenecks caused by climate events, mechanical breakdowns or other issues, disruptions are a core component of normality.
The past few years have exemplified the need for planning for the unexpected – from the Suez Canal blockage, to the COVID-19 pandemic through to floods, droughts and more. Therefore, the acceptance of disruptions as the norm, and planning ahead for it, is a critical lesson for the industry as a whole. So whether it is a financial buffer, or time buffer, incorporating the cost of handling disruptions now will help safeguard your business in the future.
If you have any further queries, please contact our helpful team.
Rachael Budd & The Transolve Global Team