Category Archives: Supply Chains

Port call optimisation reduces greenhouse gas emissions in ports

Drewry is well-known for its expertise in maritime-related matters. In a recent market opinion piece, they suggest that maritime emissions can be reduced rather simply, with port call optimization. They mean to reduce the time ships sit near a port waiting for their berth to open up.

Some ports have been successful with appointment windows. But the Drewry approach includes slow steaming to hit the port berthing window close to the time, instead of standing offshore running engines and emitting pollution. The slow steaming itself is a tested measure for reducing emissions, though it doesn’t eliminate them. The two efforts combined could save a lot of pollution, and now in some places such as the EU, emission charges based on actual fuel use numbers.

Eliminating waste in a system, such as waiting time waste, is a tried and true operations management or lean technique. But in the case of maritime shipping and ports, a lot of coordination is required. Systems need to be in place to provide accurate information about ocean carrier voyage schedules. Sailing times between ports can vary a lot, because of factors such as weather and route adjustments.

But also, both ocean carriers and ports need to share information and cooperate on setting berthing schedules. A late loading in Shanghai, for instance, will affect the projected arrival time in Long Beach. the two ports and the carrier will need to share up-to-the-minute (or hour) information about progress. Will they do it? It will require a level of interaction never before seen.

I think that ultimately, ports and carriers will be driven to this by the gains that can be made. but I think it will be a long time coming.

Update: Port optimization can actually prevent deaths. Hong Kong University of Science and Technology (HKUST) has recently studied the number of deaths that could be prevented by port waiting time improvement.

Sam Chambers June 27, 2024

Port efficiency gains can save 10,000 premature deaths annually

10 Jun 2024

https://www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/port-call-optimisation-is-key-to-reducing-greenhouse-gas-emissions-in-ports

A Story of Supply Chain Excellence

Lora Cecere, the Supply Chain Shaman, is one of my favorite writers about supply chain issues. She’s always right on target with ideas and metrics that aid companies in the pursuit of supply chain improvements. And she’s the essence of simplicity; it’s never that complicated to do, though the ideas may embody complex interactions and reactions.

This article is an example. Lora and her assistant, Alex, put together some orbit charts to show how firms performed against the industry standard.

It’s a great piece of work. In the figure above, you can see that Lenovo is doing well on Inventory Turns, though not so hot on Operating Margin. And the recent trend is toward boosting margins but reducing inventory turns. The great thing about Lora’s charts is how they constructed the comparable business dataset to show us this comparison. Read the article for some details.

For those of you who don’t know about Orbit Charts, they are essentially connected scatterplots, with the connections covering a time dimension, so we see how the pattern changes over time. They are easy to make with most graphics software.

The Supply Chain Shaman’s analysis of the Gartner top 25 Award Winners is worth pursuing. It shows that there is more than one way to achieve supply chain and operational excellence.

US Customs checks every e-commerce parcel

Air freight from the Far East to the US is slowing up because US Customs is detaining cargo to check every e-commerce parcel. That’s because a lot of drugs and fentanyl-manufacturing equipment has been discovered in shipments of smaller e-commerce packages, mostly from China.

The de minimis rule, which says that packages of value less than $800 and smaller size are subject to different import rules, is a loophole drug paraphernalia shippers are exploiting, and Customs is trying to close it.

The enhanced inspections are slowing down package deliveries. Carriers are complaining and shippers too.

I think they should shut up and follow the rules for qualifying shipments, and help with the detection and prevention of illegal transports. Fentanyl alone, according to the article, is responsible for over 100,000 deaths in the US per year.

Everyone in the e-commerce supply chain has a responsibility to stand up and follow the rules. They need to know their customers and suppliers, and their customers and suppliers. Make sure they aren’t doing anything illegal. That’s a basic tenet of sustainability guidelines.

This Freightwaves-Thompson-Reuters webinar explains a lot about how to interact with US Customs. Do your due diligence, and keep the records handy. Start taking responsibility for who you are dealing with.

By Alex Lennane  31/05/2024

https://theloadstar.com/transpac-ecommerce-freighters-on-pause-as-us-customs-checks-every-parcel/