Slow steaming is disrupting supply chains
The survey, conducted by BDP International’s consulting arm Centrx and Saint Joseph’s University in Philadelphia, found that 92 percent of transpacific shippers had to make supply chain adjustments
Latest NewsImproved freight forwarding market has little impact on rates, says new report Biomass Business Study Uses Logistics as a Measure of Commercial Success Biomass Business Study Uses Logistics as a Measure of Commercial Success Oakland Vies To Become Global Supply Chain Hub Port of Oakland remains in strong expansion mode More News
Latest ResourceFREE White Paper: Dive into the Minds of 1,500 Industrial Buyers The advent of the Industry 4.0 brought with it the next phase in the digitization of the manufacturing sector.
Leading global importers and exporters participating in recent survey addressed concerns about “slow steaming” in the transpacific.
The survey, conducted by BDP International’s consulting arm Centrx and Saint Joseph’s University in Philadelphia, found that 92 percent of transpacific shippers had to make supply chain adjustments. Of the 290 senior executives participating in the survey, 37 percent were from the Asia-Pacific region, comprising shippers in the chemical, consumer goods, retail, healthcare and electronics industries.
This mirrors observations made by U.S. shipping associations, who have demanded lower rates on trade lanes served by slow-steaming vessels. They noted that some ports will also be adversely affected.
“Slow steaming on the transpacific, will continue to hurt the long-term competitive position of U.S. West Coast ports,” said Don Pisano, National Industrial Transportation League’s ocean transportation committee chairman.
Shippers in the Asia-Pacific trade (73 percent of the respondents) agreed that vessel operators should pass down the cost savings made by reducing knot-speed. Furthermore, 36 percent suggested that these savings be used to offset increased rates in the future.
Currently, transpacific shippers are responding by conducting more advanced planning advanced (48 percent) increasing the number of carriers they use (38 percent) and increasing inventory levels (36 percent).
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Supply Chain Management Review Magazine!Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
How they did it: Supplier Trust at General Motors Supply Chain Negotiations: Creating Leverage View More From this Issue