_____________________________________________________________________________________________________ Automation
Consider the Suez Canal disruption in March 2021: even several months after the infamous blockage, its ripple effects continued to impact shipping schedules and inventory flows. Similarly, severe drought in Panama has restricted capacity in the Panama Canal, forcing shipping lines to reroute and increasing lead times.
In other critical chokepoints, such as the Strait of Hormuz, geopolitical tensions have introduced further uncertainty. Layer onto this the growing number of strikes at global ports, across both Europe and the Americas, as workers demand better conditions and wages, and it seems that volatility is becoming the new normal.
This turbulence is impacting shippers in terms of operational efficiency, service levels, and cost control. Rising demurrage and detention fees, driven by congested terminals, are eroding profit margins, while OTIF( On Time In Full) performance continues to suffer.
Automation as a strategic response
While supply chain disruption is a global and complex phenomenon, the industry has various solutions to mitigate its impact.
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