{"id":155844,"date":"2021-12-23T20:17:37","date_gmt":"2021-12-23T14:47:37","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=155844"},"modified":"2021-12-23T20:17:37","modified_gmt":"2021-12-23T14:47:37","slug":"turmoil-on-the-high-seas-indian-shippers-need-stability-assurers","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/turmoil-on-the-high-seas-indian-shippers-need-stability-assurers\/","title":{"rendered":"Turmoil on the high seas-Indian shippers need stability assurers"},"content":{"rendered":"\n

News<\/span><\/b>: <\/span>Global shipping Industry is facing several challenges in the post pandemic world like surging freight rates, logistical bottlenecks and various supply-chain disruptions. <\/span>\u00a0<\/span><\/p>\n

What are the challenges being faced by the shipping industry?<\/span><\/b>\u00a0<\/span><\/h5>\n

Less capacity, more demand: <\/span><\/b>Due to an unexpected increase in consumer demand for goods after the March 2020 lockdowns<\/span> , shipping companies have <\/span>struggled to locate adequate capacity<\/span><\/b>.<\/span>\u00a0<\/span>This led to chronic shortages of vessel space, container equipment, warehouses, intermodal hubs, and labour.<\/span>\u00a0<\/span><\/p>\n

Congestion at major regional trans-shipment ports<\/strong> has reduced the daily container sailing capacity, causing backlogs in export shipments.<\/span>\u00a0<\/span><\/p>\n

Increase in shipping rates: <\/span><\/b>Global container shipping rates have increased four to five times from their 2019 levels<\/span>.<\/span>\u00a0<\/span><\/p>\n

If left unaddressed, these supply-chain issues can decrease competitiveness of India\u2019s booming export industry<\/strong> and drag down the overall economic recovery<\/span>.<\/span><\/p>\n\n\n\n
Must Read<\/strong>: Winners and losers in shipping crisis<\/span><\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What is the way forward?<\/span><\/b>\u00a0<\/span><\/h5>\n

–<\/strong> Companies must strengthen their end-to-end real-time visibility<\/strong> of supply and demand through a \u2018global nerve centre, in place of Individual control towers of companies. <\/span>This will have data all the way from their international suppliers to their customers<\/strong>.<\/span><\/p>\n

This could also help companies spot international multi-modal solutions<\/span> which may speed up delivery.<\/span>\u00a0<\/span><\/p>\n

To implement this idea in India, companies should provide technological aid to their distributors<\/strong> who may lack such IT infrastructure.<\/span>\u00a0<\/span><\/p>\n

–<\/strong> Companies need to immediately revisit <\/span>global inventory norms<\/span><\/b>,<\/span><\/b> especially for critical components like automotive chips that are either fully dependent on imports or have a single supply channel outside the country.<\/span>\u00a0<\/span><\/p>\n

– Optimization<\/strong> in supply chain and its <\/span>diversification<\/span><\/b> will lead to better health of shipping Industry.<\/span>\u00a0<\/span><\/p>\n

–<\/strong> Shippers must monitor shipping capacity closely and <\/span>track where capacity is being deployed<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

They should <\/span>invest resources in materials<\/span><\/b> which will provide them <\/span>high revenue with lower proportionate shipping cost.<\/span><\/b>\u00a0<\/span><\/p>\n

Source:<\/span><\/b> This post is based on the article \u201c<\/span>Turmoil on the high seas-Indian shippers need stability assurers\u201d <\/span><\/b>published in\u00a0Livemint<\/strong>\u00a0on<\/span> 22nd<\/sup> Dec 2021<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News: Global shipping Industry is facing several challenges in the post pandemic world like surging freight rates, logistical bottlenecks and various supply-chain disruptions. \u00a0 What are the challenges being faced by the shipping industry?\u00a0 Less capacity, more demand: Due to an unexpected increase in consumer demand for goods after the March 2020 lockdowns , shipping… Continue reading Turmoil on the high seas-Indian shippers need stability assurers<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-155844","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704913854},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/155844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=155844"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/155844\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=155844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=155844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=155844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}