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Online orders are late and we haven’t seen the worst of it yet

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Waiting on a package? It’s the peak time of year for supply chains. But how does the industry prepare for holiday shopping when Supply chains are beyond breaking point?

Supply Chains are in crisis and the industry is warning of further damage from bottlenecks disrupted by the coronavirus pandemic to free trade negations.

Covid-19 vaccination and testing requirements have pushed many industries to breaking point, putting further strain on a sector that is already struggling to cope.

This all comes as an open letter was delivered to the United Nations General Assembly warning of a “global transport system collapse” if governments don’t lift their games.

“Global supply chains are beginning to buckle as two years’ worth of strain on transport workers take their toll,” the groups wrote. The letter has also been signed by the International Air Transport Association (IATA), the International Road Transport Union (IRU) and the International Transport Workers’ Federation (ITF). Together they represent 65 million transport workers globally.

“All transport sectors are also seeing a shortage of workers, and expect more to leave as a result of the poor treatment millions have faced during the pandemic, putting the supply chain under greater threat,” The letter added.

How is the Industry coping?

You may have noticed your online orders are taking a little bit longer to arrive than they used to. There’s more to the pile than just new clothes.

The devastating effects of the pandemic were meant to turn into a distant memory as the logistics and air cargo sectors aimed to bounce back in 2021 – instead they’re buckling.

Supply chains have become increasingly complex, and the pandemic hasn’t helped.

In fact, the pandemic prompted an unexpected shift in demand. But it also kicked off the perfect storm within the sector, that was accelerated by COVID-19.

To cope, companies are embracing new technologies and reconfiguring operations already in place to make logistics, warehousing and supply chain management more efficient. 

Peter Jones, Founder and Managing Director of Prological, says any shutdown or delay upstream in the supply chain is going to have that trickle-down effect across the entire supply chain.

Peter Jones, Founder and Managing Director of PrologicalON HOW SUPPLY CHAINS ARE COPING WITH DISRUPTIONS

He warns the sector hasn’t seen the worst of the disruptions, with global shipping prices for most of the corridors Australia trades on, dramatically increasing by three and fourfold.

“The shipping lines have withdrawn a lot of capacity out of the networks, and they’ve had to do that to maintain some level of profitability,”

Peter says.

He this has created a “global demand curve” that has outstrip supply.

Some big US retailers are finding creative ways to get around the backlog, including buying their own containers and chartering ships to get their goods to customers on time.

But major changes to infrastructure can take a long time, decades even, so there’s still a long road out of this mess. Instead, Peter suggests streamlining current operations, to help instantly speed things up, as well as bolster the current workforce.

PETER JONES DESCRIBES SUPPLY CHAIN MOVEMENTS “LITTLE BIT LIKE AN ORCHESTRA”

“The whole global shipping industry and container movement sort of operates a little bit like an orchestra,”

Peter says

“And if you pull one piece out of it, it no longer is the same as what it used to be. So now we have enormous amounts of manufacturing happening in China. But we’ve got a ports in Australia chock a block full of empty containers, without enough ships coming to Australia to get those containers back to China.”

Basically, if one link in the supply chain is broken, it slows down everything else. And, right now, we have a lot of broken links. 

The vessel congestion is so bad, many ports have now stopped accepting empty containers because they have nowhere to put them. With no empty containers being shipped back to the major exporters, they can’t ship you your goods.

When COVID-19 first emerged in China, it shut down the manufacturing powerhouse. The rest of the world carried on, but this threw off the balance in supply chains and created a backlog. 

“China can’t export as much as they would like to be around the world, because the empty containers are all in the wrong places, but there’s not enough ships around to move the empty containers back to where they need to be,” Peter says.

how long will supply chain disruptions last for?

It won’t just be this Christmas, where consumers are panicking about their parcels arriving on-time. It may take years for global supply chains to recover.

“As long as COVID is still going on, I don’t think we are going back to normal,”

Peter says mid-next year “we will probably reach the peak of the disruption” within global supply chains.

“It will take two or three years for all of this to realign and settle back down,” he says.

Peter says these conversations are ongoing with Prological’s clients, a consulting firm who designs and implements supply chain, energy and business strategy solutions across a broad spectrum of industries.

“The advice we’re giving to our clients, who are on the back end of this is, is don’t go looking over the fence for a better arrangement, you are far better to be working within the relationships you have with your existing partners and resolve your problems within that context,” he says.

“Wherever you look at the moment, everyone has the same issues,” he concludes.

Business

Top 5 destinations for “revenge travel” in 2023

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1. Greece


Greece is a beautiful country that is rich in history and culture.

The country is home to some of the most famous historical sites in the world, such as the Parthenon and the Acropolis.

Greece is also known for its stunning beaches, crystal-clear waters, and delicious food.

2. Italy


Italy is another popular tourist destination that is known for its rich history and culture.

The country is home to many famous historical sites, such as the Colosseum and the Vatican City.

Italy is also known for its delicious food, stunning scenery, and friendly people.

3. Spain


Spain is a diverse country that offers something for everyone.

The country is home to beautiful beaches, stunning mountain ranges, vibrant cities, and friendly people.

Spain is also known for its delicious food and wine.

4. France


France is a popular tourist destination that is known for its stunning scenery, delicious food, and rich history and culture.

The country is home to many famous historical sites, such as the Eiffel Tower and the Louvre Museum.

France is also known for its beautiful countryside and friendly people.

5. United Kingdom


The United Kingdom is a popular tourist destination that offers a unique blend of history and culture.

The country is home to many famous historical sites, such as Stonehenge and Westminster Abbey.

The United Kingdom is also known for its stunning scenery, friendly people, and delicious food

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Business

Wall Street smashed by months of volatility

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Wall Street neared bear market territory on Friday as stocks fell sharply to end the week with the Dow down more than 800 points.

The sell-off was driven by fears of a deeper recession, as data showed that manufacturing activity contracted for the fourth straight month.

The Dow is now down 20% from its peak in February, and if it falls below 19,000 it will officially enter bear market territory.

While some analysts believe that the market is overreacting to the latest data, others say that the sell-off is justified given the deteriorating economic conditions.

It remains to be seen whether the market can recover from this latest setback, but one thing is clear: Wall Street is in for a volatile ride in the weeks and months ahead.

The Dow was down more than 800 points, or 3.2%, at 24,608. The S&P 500 was down 3% at 2,754, and the Nasdaq Composite was down 2.8% at 7,433.

All three indexes are now down more than 20% from their all-time highs set in late September. The sell-off was driven by fears of a deeper recession as the yield on the 10-year Treasury fell below 1.6%.

The market has been deeply volatile in recent weeks on fears that the coronavirus outbreak will lead to a slowdown in global economic growth. Friday’s sell-off suggests that those fears are still very much present.

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Business

Crypto whales exchange $10 million in Shiba coins

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Two large anonymous cryptocurrency wallets exchanged a total of 855,614,973 Shiba Inu meme coins, worth approximately $9.6 million.

The data, published on the WhaleStats website, reveals that these top Ethereum wallet owners have increased their SHIB stash by $134,767,965 in value since September 21.

While it is unclear what the motives behind these transactions are, it seems that the recent surge in demand for Shiba Inu meme coins has led to a significant increase in their value.

With the price of SHIB currently sitting at $0.0016 per coin, it will be interesting to see how these anonymous investors choose to cash out their profits.

So, these whales made a profit of about $649 000 in just three days due to the price increase of both assets.

As the Ethereum blockchain network’s meme currency becomes more popular among cryptocurrency investors and traders, its price is also growing rapidly.

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