Simplifying the supply chain with A.P. Moller - Maersk

8 Oct 2021

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Roughly half of the customers, who know that Maersk besides shipping containers across the oceans, also has a comprehensive inland offering, where they can transport the goods via train or truck.

Customers know the numbers by heart: that Maersk yearly does upwards of five million inland transports for more than 25,000 customers, including the world’s largest and most recognised brands. And that we do it in 150 countries across the entire globe.

Fewer brokers, less hassle

Customers are well aware that Maersk is not only serving them by transporting the containers at sea. That when the cargo reaches port, Maersk is the connection between the local and global supply chain. That the rail services are configured to the vessels’ schedules, ensuring fast, inland delivery.

Maersk has experienced local product managers on the ground, ensuring the best solution for the supply chain

The customer is on the phone with the Maersk sales rep and it’s top of mind that when discussing the ocean transports, it will save time, money, and paperwork if considered adding land transportation to and from the warehouse. Rather than having to add inland transportation two days before the cargo reaches port and having to go looking for a different broker, tell the logistics colleagues that this is much easier to book everything at the same time with the same partner. And that in doing so, the customers are working with the +2,500 inland suppliers, all approved and verified by the supplier standards. And on top of this, Maersk has experienced local product managers on the ground, ensuring the best solution for the supply chain.

Capture the room with stories about the sensibility in countering bottlenecks and disruptions by distributing the company’s goods and supply chain by ship, train and truck. Through this the customers are building resilience into the company’s supply chain and even when faced with congestions and irregularities on one string, customers will still have goods to sell.

Logistics as an opportunity for growth

Customers know that they can create opportunities for the company by knowing all of this. That by building a resilient supply chain across the sea, track and road they put logistics in the driver’s seat as an enabler of growth. That – if not known before – the last 18 months have taught them the necessity of building a durable, agile supply chain with end-to-end visibility that can quickly match supply with demand. And that the best way to do this is with a trusted partner, with who they can plan.

This is why Maersk calls itself the integrator of global logistics. And are ready to plan the end-to-end logistics needs with the customers, all the way.

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Running a tight ship on port security around the UK

Ports around the UK continuously command media attention, and most recently, the ongoing disruption to supply chains globally has had a great impact on the day-to-day running of our ports. One example is Felixstowe, the UK’s largest container port, which has been forced to turn away ships from Asia because of a lack of capacity. The severe lack of HGV drivers is adding to the problem too. It has been reported that the amount of time goods spend inside Felixstowe port, known in the industry as ‘dwell time’, has doubled since last year from 4.5 days to 9. High-gain strategy There are plans in play to increase the number of ports in the country in the coming years. This was unveiled in the March 2021 Budget, where according to Chancellor Rishi Sunak, sites including Liverpool and Hull are becoming special economic zones, expected to ‘exemplify the future economy.’ Maritime freight cargo theft continues to be a low-risk, high-gain strategy for organised crime gangs Despite more than 90% of the world’s goods being shipped by sea, maritime freight cargo theft continues to be a low-risk, high-gain strategy for organised crime gangs. Reported thefts are on the rise, with criminals responding and changing their behaviour to adapt to COVID lockdown measures. More recently, ‘hook up’ thefts, whereby perpetrators steal entire loaded trailers from premises have been taking place, underlining the need for physical barriers to protect goods and assets. Harsh coastal environment There’s an urgent need to ensure the perimeter security selected to protect these ports from opportunistic criminals is robust enough to deter attack, and also withstand the inevitable wear and tear that the exposure to the harsh coastal environment will cause. Safety and security issues need to be carefully managed to protect property, cargo, and lives at sites where shipping delays are commonplace. While there are measures in place to ensure security at ports, more needs to be done to provide adequate levels, to keep pace with upcoming growth plans. Specifying robust security measures for maritime sites can be challenging - keep reading for our key considerations. Perimeter security projects The best suppliers will advise on what’s needed to meet certain standards As with all perimeter security projects, the process should begin with a thorough assessment of the site. 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These properties ensure excellent adhesion to the metal substrate without the need for a separate primer. Whatever the application, marine coat has undergone long-term field tests to prove that it can provide: A long life with superior corrosion and abrasion protection. Excellent grip, feel, and electrical insulation. Resistance to chipping and attack from light, pollutants, chemicals, and vandals. An attractive, environmentally friendly finish. It is also worth doing your research and looking into more innovative products on the market. Tamper-proof panel connectors with fixings on the secure side of the fence provide a simple solution for securing mesh panels to posts that is often overlooked. 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Robust security measures Perimeter fencing will only ever enhance a security strategy, and when specified correctly, alongside electronic security systems, it will create a robust level of physical protection, making the site far less appealing to intruders. Consulting with manufacturers will aid a full understanding of the available solutions. We advise investing time in making use of suppliers’ website information, product videos, NBS Source, and expert advice. With valuable and essential goods passing through our ports daily, robust security measures must be installed. This will help to ensure the facilities continue to run smoothly and reduce delays.

Backlogged ports among symptoms of global supply chain disruption

Backlogged ports, a shortage of shipping containers and not enough workers are among the factors contributing to supply chain disruptions that have led to shortages of various goods and are likely to impact availability of merchandise, during the upcoming holiday season. Demand is growing rapidly as the impacts of the COVID-19 global pandemic have diminished. However, lingering consequences of the pandemic are continuing to impact the container shipping market. With each element in the system tightly intertwined, any changes tend to ripple with additional repercussions. Slow circulatory movement of containers A direct upshot of the COVID-19 pandemic was to slow the circulatory movement of containers globally. To increase productivity and save time, some vessels began making their return journeys empty, in effect leaving more empty containers at the delivery destination and fewer at the source of shipments. The varied timing of the pandemic in Asia and the West compounded the problem At one point, Asian containers could not be sent back to Asia, because of COVID-19 restrictions in place. The varied timing of the pandemic in Asia and the West compounded the problem. With empty containers stacking up in the West and a shortage in the East, slower circulation of containers and higher demand have led to sharp increases in costs. Millions of TEU dry container units added A lack of new equipment is not the problem. Last year, the industry added about 2.8 million twenty-foot equivalent (TEU) units of dry containers, in line with the 10-year average. Congestion at ports has been going on for months and still continues. Recently, in the San Pedro Bay region, near the Port of Long Beach, in California, there were 144 ships, including 85 ships that were waiting to unload. In Savannah, Georgia, more than 20 container ships were waiting to dock. Ports in the US states of New Jersey, New York and Texas have also seen record backlogs. Majority of influential global ports face backlogs According to one report, 77% of the most influential ports in the world reported above-average wait times this year. The turn-around time for a container in ports has nearly doubled in 2021, in comparison to 2019. A worker shortage at the ports is aggravating the problem and container ships now carry about 30% more goods, which require more labour to unload. Ports are also doing the additional work with fewer people. There is also reduced labour productivity at warehouses and marine terminals. Investment in workforce training to counter bottlenecks Some port bosses expect the bottlenecks to last through the summer of 2022. To address the problem, some ports are investing in workforce training and scheduling night-time appointments to pick up goods. Although a lot of attention is focused on the ports, they are just one element in the troubled supply chain. Even if the ports could increase their capacity, downstream processes would also have to increase their labour force, to accommodate the higher volume. Difficult to absorb impact of global supply chain disruptions In the best of times, the global supply chain operates like a well-oiled machine In the best of times, the global supply chain operates like a well-oiled machine, despite its complexity and the inter-relatedness of various stakeholders. However, the sheer size of the system makes it difficult to absorb the impact of any disruptions. Turning the system around takes time, and a burgeoning global demand for goods, in the aftermath of a global pandemic, makes recovery even more difficult. The Biden Administration in the U.S. has established a Supply Chain Disruptions Task Force, to monitor and address short-term supply issues. This task force is convening meetings of stakeholders in industries with urgent supply-chain problems, such as construction and semiconductors, to identify the immediate bottlenecks, as well as potential solutions. Role of global supply chain more critical now There have been supply chain disruption and staff shortages in several countries, including the United Kingdom (UK), Germany and New Zealand, according to business surveys. As the economy recovered and demand increased, businesses have not yet been able to bring inventories fully back to pre-pandemic levels, causing inventory-to-sales ratios to fall. The role of the global supply chain has never been more critical.

How the maritime industry is working to lower carbon emissions

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Simplifying the supply chain with A.P. Moller - Maersk

Fewer brokers, less hassle

Logistics as an opportunity for growth

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