The world has had its fair share of supply chain challenges in recent months. Three global powerhouses have joined together and signed a Memorandum of Understanding (MoU) to boost cooperation and address risks to critical supply chains through a new trilateral partnership.
The three countries joining this supply chain MoU are the United Kingdom, USA,and Australia.
What’s the bigger picture? The MoU creates the Australia-United Kingdom-United States Supply Chain Resilience Cooperation Group.
Dealing with risks and disruptions
The shipping and logistics world have witnessed “The Red Sea effect” since October 2023. Industry has been contending with the ongoing obstacles thrown their way like rerouting shipments, cargo delays, and finding alternatives to keep freight moving.
The UK government took action earlier this year to safeguard the movement of goods and formed the Critical Imports Council.
This new group will work together to share data and take joint actions to strengthen important supply chains, helping to identify and deal with risks, threats, and disruptions.
Here are the focus areas of the three countries for this collaboration:
- Early warning: The Group will create a pilot focused on the telecommunications supply chain.
- Global impact: This pilot is crucial for the smooth operation of our digital economies.
- Risk monitoring: It will help identify and track risks that could disrupt telecom supply chains.
- Knowledge boost: The pilot will improve understanding of vulnerabilities and critical risks.
- Cooperative response: Procedures will be developed to share information and respond to disruptions together.
Industry leaders weigh in
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.
Maerk’s CEO Vincent Clerc previously warned that the months ahead are going to be tough for both carriers and businesses due to the Red Sea crisis.
In June, Dynamo Weltweit Logistik said global port congestion has reached post-pandemic highs due to Red Sea disruptions.
Dynamo Weltweit Logistik specializes in supply chain and logistics solutions. The company has a presence in Chile, Argentina, and the US.
Benefits of intermodal transport in logistics
The business world often has to contend with delays in events like global supply chain disruptions. Intermodal transportation can offer businesses some much-needed assistance when dealing with logistics bottlenecks.
Here are ways intermodal services can help a logistics company under pressure to deliver:
- Efficiency and flexibility: Allows seamless transfers across modes, optimizing routes, and can also reduce delays.
- Reduced costs: Efficient use of each transport mode can lower overall costs compared to using just one.
- Reduced congestion: Utilizing different transport modes can relieve congestion at ports and on roads.
A new study by The Future of Commerce says: “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.”
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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.
