How to make sure Christmas cargo does not arrive in March

Supply chains are complex systems.

No one is really in charge of the whole supply chain, but each of us can influence different vital parts.

Huge demand for goods from China, still skyrocketing freight rates, equipment shortage, and lasting port congestion will surely impact shippers through unforeseen issues such as excessive delay in cargo delivery and/or possible theft. Christmas cargo and importers’ profits are at real risk.

Congestion Impacts:

For US and European retailers, this raises the real prospect of a shortage of goods ahead of the Christmas shopping period.

It is anticipated that the congestion will continue to cause massive impact not just for certain ports, but also for surrounding ports as shippers continue to try to redirect cargo.

Things shippers can do today to reduce the impact of delays:

1. Communicate closely with shipping lines if your containers are destined for possible congested ports, and therefore, may be affected. Shippers may need to consider a change of destination (COD) to avoid lengthy delays.  Not arranging COD on time may result in cargo claims for cargo damage and/or demurrage charges at the destination. Do not assume, that all containers will be delayed. Track your shipments closely to make sure you arrange container pick up and secure trucks way before other shippers.
2. Changing vessel schedules often result in the trucking industry bearing the cost of delays as they have to schedule their own pickups and drop-offs in advance with little to no visibility when a vessel arrives. This increase in uncertainty for truckers to make appointments for the delivery or receipt of containers at terminals often results in costly delays. Communicate with your trucking company closely.
3. Ensure your vetted and insured trucker/transporter checks the bolt seal number against the documents before gating out of the port, request the transporter to report any anomaly to the relevant authorities, and ensure any noted anomalies are marked on the EIR (equipment interchange receipt) at the time of gating out.
4. While no freight forwarder can control vessels delays, some freight forwarders are really on top of carriers’ sailing schedules and can often offer the next best option.
5. Consider different shipping modes. Airfreight, while more expensive, maybe the only option to get your cargo to its destination on time. A combination of air and ocean freight could also work.
6. When your containers have been delayed, especially when shipping fresh produce, it is a good idea to always anticipate a possible cargo claim. Remember to send notification of damage to the shipping line within 3 days of delivery, whether you need to claim or not.
7. Port congestion increases the risk of pilferage from containers. Wherever and whenever cargo is not moving, it is more likely to be stolen. Thieves also prepare for the Holiday Season.

This list of solutions is not complete. In this article, we shared workable tactics and loss prevention measures on how to reduce the impact of excessive delays, potential cargo claims, and associated costs for importers and exporters globally. Most importantly to ensure all goods for the End of the Year Holiday arrive on time.