The logistics landscape and the rest of the world have dealt with their fair share of supply chain obstacles in recent months.
A new study by The Future of Commerce says the dynamics of these challenges bring both difficulties and opportunities for businesses trying to stay ahead in our interconnected marketplace.
Let’s explore the challenges plaguing the world right now.
Red Sea crisis
The study finds that the Red Sea crisis has reduced shipping capacity and led to supply-demand imbalances.
Locate2u has been keeping a close eye on the situation since October.
Importance of the Red Sea
The Red Sea is a crucial corridor connecting the Mediterranean Sea, the Indian Ocean, and beyond. Its strategic location gives shippers access to Europe, Asia, and Africa. The Red Sea route is the natural sailing route between these regions.
Since October, the shipping and logistics industries have had their fair share of challenges. Companies have had to strategize, reroute vessels and think of alternatives to ensure goods keep moving.
Peak demand puts pressure on logistics
The study reveals supply chains face the challenge of surging seasonal demand.
“Traditional peak events, including back-to-school, Halloween, and Black Friday, send businesses rushing to stock up to meet demand,” reads the report.
The peak season rush has been evident in recent weeks. Store owners have been cashing in early to avoid disappointment, with the Wall Street Journal reporting larger numbers of containers landing in the US than usual since late spring.
ALSO READ: How to prepare for peak season shipping: A guide
Resilient approach to supply chain challenges
In the face of supply chain adversity, the business world has had to think fast and work around the roadblocks.
In countries like the UK, its government moved to establish the Critical Imports Council to safeguard the flow of goods like medicine and smartphone chips.
The council will bring together government and industry experts to help protect businesses from supply chain shocks now and in the future.
The Future of Commerce study highlights there’s an opportunity for innovation and resilience. Rapid detection, response, and recovery systems combined with end-to-end, data-driven supply chain control can reduce risks and boost adaptability.
“As global events continue to unfold, businesses must stay vigilant and proactive in managing their supply chains. By embracing innovation, building resilience, and adapting to change, they can come out stronger on the other side,” reads the report.
NOW READ: USPS: Sharp decline in expedited shipping demand
Photo Credit: Canva
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
