We leave a 2021 full of surprises behind. 

This year and for the first time, potential problems in the supply chain become general news. It was bound to happen on one given sector, sea shipping, which stands for 90% of cargo moved globally.

This ending year is marked with two main events regarding sea shipping. March, Ever Given gets stuck at the Suez Canal, causing a global stall and keeps the logistics industry at unease. Year’s end, right before Christmas Sales we suffer the supply crisis. It had to happen sooner or later on one given sector, sea international shipping, which stands for 90% of cargo moved globally.

 

Sea shipping is both economical and practical. Since their creation in 1956, Cargo containers became the core of globalization. But, for that same reason, now it’s facing natural constraints; well-known limitations that affect considerably the shipped goods cost are:  Port operations, available fleet and, no wonder, timings. It’s only impossible to shorten the transit time between Shanghai and Barcelona.

These three conditioning factors set what we experience this year. The first hint came on March, with the Evergreen’s vessel getting stuck at the Suez Canal. Since then, it became clear how brittle the supply chain really is, that one sole event reaches global scale. It also revealed how much in terms of costs and provisioning an event like that can cost.

That affair became merely anecdotic when, not long after, workers started noticing that demand defies the carrying capacity. This outcome takes shape swiftly and the limitation previously stated face two unavoidable facts, after a 2020 ruled by contraction. First, the astonishing rise on goods demand. And, also, the vital need to make profit by the companies.

The outcome is easy to imagine. Ports are facing extreme peak loads. Vessels on the standby are a source of over costs. On top of that China, more reclusive by the day,  Hampers real-time tracking of cargo, which compromises its traceability.

All that is taking place alongside the rising in energy costs, making up for an unsettling scenario.

 

Shipping companies, the firsts beneficiaries

In those settings, the only benefiting are Shipping companies. Freight forwarders like eGlobe will make our best to palliate this situation, of course. But let’s not forget that in the last decade, many shipping companies have disappeared, for they could not compete against the sector giants.

The resulting sector is one under strict oligopoly regime, with its consequent toll on the price. Few things can be done by the remaining tiers in the chain, instead of relocating the increment in price to the final client. A situation that surely will take some time to settle.

But there’s more. This dominant situation preceding this year’s events and it has already risen suspicion and complaints among the providers of logistical. 

Short-term consequences are difficult to prevent. For some, everything will resolve thanks to market adjustments, where global commerce shall get used to: returning fruitful activities to import countries and taking more protective measures.

Others, support the idea of this current situation longing still for some years. Reoccurring problems are too numerous to foretell a quick recovery: energy, raw materials, production structures… All of them work against short or mid-term solutions. 

However, this point of view introduces advantages too. The apparition of new shipping companies that increases competitivity can be expected, and a change in prices downward.

So, in the meantime, ¿What do we do?

Logistic operators are left tasked with searching, foreseeing and preparing. And, on top of that, must focus on the clients and partners, against big multinationals, whose interests doesn’t always agree with importers and exporters.

Our focus is to facilitate tasks for clients and workers alike with dedicated technologic solutions, high reactivity focused on improvement and efficiency, also, proximity granted by our global correspondent network.

eGlobe

Freight forwarder from Barcelona offering full transport solutions from efficiency, transparency and professionalism. With a strong sense of closeness and custom service.

If you’re planning to ship your goods, at eGlobe we work with all kinds of portages, and very competitive prices. We encourage you to order a contribution without any obligation.

The last day of vacation is supposed to be done to relax, but from the moment you have to worry about finding a way to get to the airport on time, until you make sure you have packed all your luggage, finishing the vacation is everything less relaxing. Why put up with the stress to travel when you have the easiest way to reduce this stress within reach? 

Once you have decided to say goodbye to all the frustrations that come with going to the airport or train station dragging suitcases and wasting all day without taking advantage of your last hours, you will realize that luggage shipping is increasingly popular and intelligent. With Bags & Go it has never been so easy to travel without worries and especially without suitcases. 

Imagine for a moment a perfect last day of vacation. You wake up in your hotel or apartment and you realize that your last day of vacation has arrived. You take it very calmly because you know that Bags&Go will pick up your bags wherever you are and that it will return them to you at the agreed time and place that you have decided. From here, you have a whole day ahead to enjoy Barcelona. Thanks to Bags&Go you have been able to visit the city, eat quietly on a terrace and do the last shopping without dragging any suitcase. When you use Bags&Go, your getaway can be that easy. Don’t be the only one dragging your luggage. Travel smart and you will enjoy more.

 

WEB: bagsandgo.com

Barcelona-Catalunya Logistics Center (BCL) has written a document with six proposals for infrastructure improvement and management that are easily executable so that rail transport becomes competitive. The document raises easily executable actions that facilitate the development of efficient and competitive rail services that respond to the intermodal and transport needs of Catalan companies.

At a time when digitization and logistics drive commerce and competitiveness, the promoters of this document consider urgent advances to be needed so that rail freight transport is aligned with economic needs. Also because it helps the declared continental and intercontinental logistics vocation of Spain, the modal rebalancing and the environmental improvement.

At present, the modal share of the railroad in Spain considering the terrestrial modes is very low, of the order of 5% in t-km. However, and in spite of the orographic conditions and other limitations, as stated in “Report on the supervision of the rail freight market” of December 2016 of the National Commission of Markets and Competition (CNMC, hereinafter), this The quota could be between 13-15%, at the level of countries like the United Kingdom and France that have relative relative weights of industrial GDP in their economies. The growth potential of rail freight transport is multiplied in Catalonia, which accounts for almost a quarter of industrial production, which is the industrial engine of Spain according to recent statistics from the INE. In addition, Madrid and Catalonia are the two most logistical communities in the Iberian Peninsula, which is why they need to have competitive rail services between them and with the rest of Europe.

You can read the manifesto below:

[gview file=”https://clusterlogistic.org/wp-content/uploads/2017/06/MANIFEST-PER-A-LIMPULS-A-CURT-TERMINI-DEL-TRANSPORT-MULTIMODAL-JUNY-2017-CATALÀ-Versió-Definitiva.pdf”]

Let’s review the evolution of logistics since the 30s until now.

Years 30 “Military logistics”

After the Second World War, the interest of business by the logistics process arises and an analogy is established between military logistics and technical material supply and military logistics is begun to be related to industrial production.

Years 50 “Conceptualization of logistics”

Logistics becomes more important due to the transition that goes through the most developed countries, from an economy characterized by excessive demand to an economy with excess supply, with these being their main characteristics:

• First developments of the total cost of logistics operations.
• It focuses on the concern to satisfy the customer.
• Distribution channels are of particular importance. You want to sell any product anywhere.
• Increase new products, as a result the product lines are originated.

60 Years “Outsourcing”

Logistics took a new approach where “outsourcing” was the most appropriate mechanism to reach customers, since it had as its main objective the subcontracting of other companies because the flow of goods or information was efficient and reached all parts That were within the reach of the company.

Years 70 “The concept of trial logistics”

• Customer service becomes an indispensable requirement to continue competing with market leaders.
• Progress in the concept of physical distribution.
• There are periods of recession and growth in the world economy.
• Development of the inventory management strategy.
• The technology for the industrial revolution that occurred during these times began to emerge, and the cost of information technology was reduced to improve the quality, which brought about an improved mechanism for the supply of the goods Or information accurately and precisely at the time the customer made their order, this mechanism is called “Just in Time”, that is just in time

Since the 80’s “Modification of preferences” 

• The energy crisis of the moment drives the movement towards the improvement of transport and storage.
• Just in Time’s approach was modified by Quick Response (QR) and Efficient Consumer Response (ECR) with the sole purpose of seeking a precise delivery with the exact amount, when and where needed, to meet To the customer.
• Changes in supply chain preferences where special attention is paid to suppliers, distributors and customer service, defining the end-user’s demand.
• Inventories, total logistics costs are reduced, and delivery times are shorter.
• Logistics operations are energy-intensive: environmental-ecological concern is born.

1990 “Promotion of logistics”

Logistics went on to become a more integrated process in terms of its external and internal environment, in other words, its internal processes within the company were managed according to the relationships that were with its customers and suppliers.

This process of integration causes logistics management to begin with a strategic plan regarding the design of how to reach the final customers, in order to go out and minimize competition, establishing efficient plans for the supply of the products.

• Technology continues to position itself in conventional Logistics processes and Distribution channels
• Outsourcing services
• Demand for logistics services expands

Conclusions

Day by day it is observed that to put into practice a good business logistics management is essential, it has developed over time and is now a basic aspect.

A perfectly designed logistics project is the most strategic tool to compete with the demanding current market, achieving customer loyalty.

All these changes that were adapted over time in the administration of the logistics caused not only to administer an internal process that goes from the manufacture of the product until it acquires the client, but now it is ‘They analyze a whole network of supplies that involve various process flows, which is now known as the supply chain management, which must also take into account intermediate customers such as distributors and retailers in the process What is done because the product arrives at the customer.

This supply chain involves several stages such as suppliers, manufacturers, distributors, retailers and clients, which the new administration integrates them interconnectively, since each one is self-sufficient in an increasingly competitive market. Supply chain management currently seeks integration into all the decision phases in its Chain, which has had a great growth for the revolution of technology, which has led to the strategies being based on the quality of the relations between the participants in the supply chain, which seeks to align them with the objectives Of the company. All in order to give a better service to the end customer, in addition to giving greater satisfaction value and the customer to become loyal to the company.