Topics and trends

The COVID-19 pandemic makes more evident to businesses and companies the importance of having control over their supply chain and how increasing their digital footprint is an unavoidable step. but what does it mean to digitally transform your logistics? During this topic of the month, we will share additional light on a recurrent talking point in many articles and news. Digital transformation.

African technician working on laptop

Supply chain digitalization

It is also called; supply chain transformation and it is nothing more than changing an analog supply chain process to a digital one by settling master data that adds information from across the overall supply chain. The idea is to use software that focuses on automation and business intelligence. It also helps have interconnected networks by improving links between various nodes in the supply chain, using advanced analytics, and setting up the best combination of suppliers, distribution centers, and transport services at the best cost.

Some advantages of a digital supply chain:

  • Reduce manual tasks, allowing automation and reducing human error, freeing up time for other tasks needed.
  • Speeds up the process, as automated invoicing for example.
  • Single source of information, by keeping the data organized and in one place, reducing time and different systems.
  • Analyze massive amounts of data and reduce the time to take decisions.
  • Incorporate real-time information and the best combination of suppliers.
  • Improve quality and compliance by diversifying suppliers, the digitalized process gives visibility and compares counterparts.

Nowadays, technology is a helpful tool to facilitate, not to complicate. Logistic stakeholders are using digitalization as an opportunity to potentialize their processes and to improve trust, transparency, and teamwork as the path to becoming more agile to the recent changes in the market.

The importance of having more visibility in your supply chain

In the past two years, with the pandemic and so many disruptions in ports and the supply chain in general, visibility has been something crucial Logistic professionals need to have visibility to run their business and be able to shift their gears at an opportune time.

Having more visibility means understanding the changing supply chain. Where products and parts are coming from and the main factors affecting and influencing the price or the available stock or certain products, for example.

Tracking his crops with technology

Visibility needs to be enabled not only for the logistic processes controlled internally but also for the whole supply chain, which means connecting the data from the suppliers until the final delivery. McKinsey & Co. says that 93% of procurement departments are analyzing their supply chains and looking for new ways to increase the resilience of the whole network.

The supply chain must now be visible for the supply network to maintain clear control and react to the changes and disruptions. An important tool that reflects crystal-clear visibility of the supply chain is given by technology and its goodness in analyzing data.

How can you improve your digital tools with Maersk solutions

In these times, companies are looking to impulse their partnerships with logistic providers to support them in digitalizing and innovate in their processes to achieve an end-to-end visibility in real time Some important aspects to look at are to take control and leverage their environment, reduce manual work, and monitor and improve performance.

In the next link, you can find “How FMCG companies benefit from supply chain visibility” (Insights Digitalisation) by partnering with Maersk and creating value for their industry.

Ocean Updates

Ocean update
Trade Lane Comments Demand Trend
Trade Lane
WCSA to Asia
Comments
  • Scrap metal prices are expected to drop, which could affect exports in the coming months. Global copper prices dropped, but exports remain strong. Mining segments ex Mexico continues to perform well. Mexican avocado peak season to start in Sep/Oct
Demand Trend
Stable
Trade Lane
Asia to WCSA
Comments
  • Although volumes are healthy, recently introduced capacity has resulted in a softer market with market utilization averaging 90% across carriers with no backlogs and important rate decreases on the short-term approach. The long-term segment is observed unstable with short term rates now reaching long term contracts levels into LAM across carriers. Main risks to consider additionally to the Zero-Tolerance Covid policy in China, is the available capacity deployed for August and September ahead of Golden Week in October.
Demand Trend
Stable
Trade Lane
Europe to WCSA
Comments
  • Volumes remain stable and expecting that European summer holidays have a medium impact as of August. Ukraine/Russia conflict volume is mostly recovered as demand from the Mediterranean is very healthy and North Europe volumes are steady; highest risk across markets lies in sailings from Germany with union strikes affecting Hamburg and Bremerhaven ports operations, mainly.
Demand Trend
Stable
Trade Lane
WCA to WCSA
Comments
  • With European and US markets changes, more space has become available for short term demand; expecting that this region enters their peak season in August, outlook remains positive from both India and Middle East into the Americas while the long-term contracts continue doing well.
Demand Trend
Stable
Trade Lane
Asia to ECSA
Comments
  • Since some carriers have deployed additional capacity for August while demand for Q3 is expected to stay strong, rates may observe fluctuations on the spot market. The long-term segment is also doing well, yet one main risk is demand from Argentina as economic situation deteriorates. Another latent risk is China's Zero-Tolerance covid policy, along with changes in the available capacity deployed for August and September ahead of Golden Week in October.
Demand Trend
Stable
Trade Lane
Europe to ECSA
Comments
  • The Mediterranean market continues strong and steady with minimal impact from the summer holidays effect on August loadings. North Europe is under pressure from Germany strikes affecting operations in Hamburg and Bremerhaven ports, mainly. Additionally, industrial sectors continue to signal impact on their supply chains from the Ukraine/Russia conflict.
Demand Trend
Stable
Trade Lane
WCA to ECSA
Comments
  • With European and US markets changes, more space has become available for short term demand; expecting that this region enters their peak season in August, outlook remains positive from both India and Middle East into the Americas while the long-term contracts continue doing well.
Demand Trend
Stable
Trade Lane
East Coast to Asia
Comments
  • Overall demand continues to be driven by protein related products into Asia (mostly China). Cotton crop is gradually ramping up now in August towards the peak season which is expected to take place in Q4. Extra capacity deployed in the market to cover the booming demand on the imports may also impact the supply & demand export wise.
Demand Trend
Stable
Trade Lane
East Coast to Europe
Comments
  • Demand for main commodities such as coffee, grains, tobacco and paper remain stable. Citrus season out of River Plate starts to phase out in August. A combination of port congestion and strike actions in some European ports as well as the bad weather in East Coast of South America are hampering the ability to bring vessels back to schedule.
Demand Trend
Stable
Trade Lane
West Coast to Europe
Comments
  • Fresh Fruit market remain unstable: Competition adjusting rates jeopardizing contract fulfillment. Excess Fruit delayed due to weather conditions.
Demand Trend
Unstable
Major ports status

Main port status

Key ports across our global network remain stressed mainly due to shortage of labor and weather impact.

  • In Northern Europe, Situation in Bremerhaven remains with experienced waiting time of 3 days due to busy line-up and yard congestions.
  • In Asia, the situation has improved in Ningbo with experienced waiting time from 4 to 2 days, same as Yantian.
  • In Latin America the situation related weather disruption is more stable in the Gulf of Mexico however in Chile we can see the deterioration in line up as consequence of often port closures, due to strong winds and high swells. Same being experienced in South America,
    due to weather disruption, experienced waiting time can be of 1 day in Itapoa and Paranagua.
  • In North America, West Coast the situation has not much changed with very high experienced waiting time. Oakland and Los Angeles are the critical ports with experienced waiting time up to 16 days. For the Canadian ports, Vancouver remains deteriorating and waiting time experienced can be up to 55 days.
Air update

Air updates

Middle America Area

  • Own Capacity flight from Mexico (MEX) to (FRA). - With Senator integration we are able to move general & DG cargo in compliance with IATA regulations out of Mexico to Germany. 2 direct flights per week. Space available.
  • Space Limitations & Backlog out of Nicaragua and Honduras to US. - Due to freighter cancellations in Nicaragua and Honduras, space is limited and need to be blocked in advance, preferable as priority cargo. Airlines expect to have more regular frequencies by the end of August.
  • Flights from Mexico to Brazil overdemand, we need to block space at least one week in advance.
  • Additional flights from Mexico to N.E & S.E Asia

Caribbean Area

  • Space Limitations & Backlog out of Nicaragua and Honduras to US. - Due to freighter cancellations in Nicaragua and Honduras, space is limited and need to be blocked in advance, preferable as priority cargo. Airlines expect to have more regular frequencies by the end of August.
  • Flights from Mexico to Brazil overdemand, we need to block space at least one week in advance.
  • Additional flights from Mexico to Northeast & Southeast Asia.

Highlights

Intelligent supply chains

Intelligent supply chains

Supply chains are often a complex set of working parts and processes. Automation can help improve processes and streamline workflows so your supply chains function smoothly.

Want to know more about the role of automation in driving resilience, operational excellence, and sustainability? Find out here.

Maersk rainbow container arrives in Latin America

Maersk rainbow container arrives in Latin America for a tour to celebrate diversity and inclusion

For the first time, our rainbow container has arrived in Latin America!

The Maersk Rainbow container will continue the journey around the world, so keep an eye out for our Rainbow container in the future. Find out here.

Please reach out to us if you have further questions about solutions for your supply chain. We are here to help you!

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