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Blockchain not yet for supply chains

Gartner says 80% of blockchain supply chain developments won’t get out of design and development for several years.  So many of them are just recycling financial blockchain ideas into supply chain space without understanding the issues.  A case of a solution chasing a problem, the bugaboo of ITY initiatives forever.

I’d like to get my hands on this report from Gartner.  It should be interesting.

The Gartner source below says 90%!!! I like that number better as an estimate.

Here’s a quote from the latter press release from Gartner:

“The budding nature of blockchain makes it almost impossible for organizations to identify and target specific high-value use cases. Instead, companies are forced to run multiple development pilots using trial and error to find ones that might provide value.  …

Furthermore, current creations offered by solution providers are complicated hybrids of conventional blockchain technologies.”

Exactly.

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 via Blockchain may be the way ahead for supply chains – but not yet – The Loadstar

Another source: https://www.gartner.com/en/newsroom/press-releases/2019-05-07-gartner-predicts-90–of-blockchain-based-supply-chain

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Posted on February 13, 2020 by in Advanced Computing, Logistics, Production Operations, Strategy, Supply Chains, Uncategorized

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Reefer crisis – stranded perishables rot at Chinese ports

The unprecedented effect of China’s Coronavirus actions on supply chains continues to astound us. Sam Whelan’s article points out that quarantines on drivers moving between cities and/or ports have caused driver shortages.  Cold chain goods can’t be moved and lie rotting in the box.  How can food and perishables shippers function in such an environment?

Firms are also charging extra fees for handling and storage.  A lot of the trouble is with goods coming to China from neighbors such as India. there are some issues with US exports to China as well.

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via Reefer crisis looms as stranded perishables rot at congested Chinese ports – The Loadstar

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Posted on February 13, 2020 by in Logistics, Production Operations, Shipping, Supply Chains, Trucking

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Coronavirus sparks possible force majeure

 

Force majeure is a rarely invoked clause in many contracts. It frees all parties from obligations during the time of some major catastrophe beyond their control, such as war, strikes, riots, crimes, or so-called acts of God (earthquakes, hurricanes, volcanic eruptions, epidemics, and so on).  It seems that some Chinese shipyards and ports are applying for papers from The China Council for the Promotion of International Trade stipulating force majeure conditions.

This would potentially allow ocean carriers to cancel ship runs, lengthening supply chain transit times for cargoes.  There are already long delays. The extension of Chinese New Year to give more time to adjust to the Coronavirus outbreak also introduces delays.

It’s hard to say how such a clause would affect IMO2020 compliance. Shipyards will be closed, preventing scrubber installations, and so there will be long delays in fitting out ships with required scrubbers.  This may go on a lot longer than anyone thinks, since backlogs were already long on scrubber installations.  I doubt that IMO2020 rules on low-sulfur fuel use will be changed to accommodate force majeure, so carriers will simply have to do with fewer ships than they planned for. Shippers, their customers, will take the hit.

Splash-logo-Feb-Aug-e1519814055424    FEBRUARY 4TH, 2020 Jason Jiang JASON JIANG

via Coronavirus sparks force majeure conjecture – Splash 247

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Posted on February 4, 2020 by in Shipping, Supply Chains

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