Category Archives: Supply Chains

The nimble prosper in chemicals

A nice article from McKinsey based on their consulting experience with the chemicals industry.  It seems chemicals need to be nimble the way drug makers are, by moving investment in projects around to match competitive advantage.  The ability to do this quickly and perform is a ticket to success.   It reminds me of the classic work on the cycle time of industries, also out of MIT.

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Crafting a strategic road map and responding rapidly to external shocks are critical for superior value creation in chemicals. A McKinsey & Company article.

Source: The nimble prosper: Dynamic resource allocation in chemicals | McKinsey & Company

Spot container rates skyrocket from Asia to Europe

What’s this about the huge rise in freight rates Shanghai to Europe and to the Mediterranean?

It’s a startling rise, but also note that the price Shanghai to the West Coast is much cheaper than Shanghai to the East Coast.

American Shipper

Since last week, rates from Shanghai to Northwest Europe and the Mediterranean increased by 328 percent and 298 percent, respectively.

Source: Spot container rates skyrocket from Asia to Europe | AS Daily Newsletter | AS Daily | American Shipper

How Much Did Carrier Alliances Really Contribute to NY-NJ Port Congestion?

This is an older (May 2015) article about the congestion situation at the port of New York/New Jersey and its relation to container shipping alliances.  It’s still true by and large. It is based on a Journal Of Commerce (JOC) article.  Chassis are still to blame in large part at these ports.  I’m sure there’s more to it if you’re inside.  But the point is clear.

Ports and Terminal operators need to address these downstream issues that affect how reliably cargo gets to end customers, and so do the ocean carriers.

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You might be disappointed to hear that port congestion probably won’t ease as much as you expected despite the agreement between the IWU and the PMA.

Source: If NY-NJ Port Congestion Persists: How Much Did Carrier Alliances Really Contribute? – Penn Intermodal Leasing, Inc