FMi Logistics Calgary Exceptional. Logistics. Delivered

Supply Chain Strain

Have you noticed that it is harder to get bookings from freight forwarders and shipping lines lately? Have you also noticed that ocean freight rates are continuing to rise?

What are the reasons behind this and who is to blame?

The answer is everything, everyone and no one. You must consider how we got to this point – A pandemic erupted, and countries went into varying degrees of lockdown. Shipper’s cancelled large amounts of orders and the demand plummeted. Ocean carriers then responded by cancelling sailings as the demand was not there.

Shortly after all the cancellations the demand increased significantly and quickly. However, the container equipment was not available. Essentially shipping lines were not able to retrieve the empty containers and use them for exports. Shipping lines are continuing to try and solve container shortage by reducing the free-time and detention-at-destination. In theory this would provide a quicker turnaround time and more equipment should be available.

This container shortage is a major contributor to the increased ocean freight rates.  The result has turned shipping from Asia into the Wild West where companies are paying a “premium” to the shipping lines to get space and a booking. The pandemic and uneven global economic recovery has led to this problem popping up in Asia and other parts of the world.

By the end of March, 22 container ships were anchored at LA-Long Beach. 29 were anchored a week earlier. Experts predict this situation to continue at least until late spring if not longer. There is no quick short-term solution or fix for this.

FMi Logistics’ advice to shippers is to give your logistics partner as much lead-time as possible to ensure our ability to secure bookings and equipment. Working with our long-term Asian and European partners we have been able to secure equipment and keep our customers supply chains moving.  Let FMi Logistics take the stress out of international shipping. Contact us today.

More FMi Blog Posts

FMi Logistics Calgary Exceptional. Logistics. Delivered

Supply Chain Strain

Intermodal Transportation

What are the Advantages of Intermodal Transportation?

At FMi Logistics, we understand the importance of intermodal…
FMi Logistics Calgary Exceptional. Logistics. Delivered

The Advantages Of Outsourcing Your Freight

Outsourcing non-core competencies just makes sense. It provides you with more flexibility, expertise with no associated investment, and ultimately, a driver for your bottom line.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Intermodal Transportation For Your Bottom Line

Every transport mode has advantages and disadvantages. Road transport is unbeatable in the last mile due to the flexibility and availability.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Message from the President April 9, 2020

I trust this message finds you safe and well. A brief update on what FMi continues to do in the spirit of keeping our people healthy and safe.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Warehousing Vancouver | Measuring KPI’s

Key performance indicators allow a business to assign measurable values to key functions in the business.
warehouse
FMi Logistics Calgary Exceptional. Logistics. Delivered.

How Does Pick And Pack Distribution Benefit My Business?

Pick and pack provides a cost-effective, flexible, secure and efficient way of catering for the individual fulfillment needs of your businesses and your customers.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Warehouse Services – The Basics

As part of a supply chain management procedure that’s complete in itself, pick & pack is the typical method used in the distribution of retail goods and related activities.