International trade is growing exponentially, online shopping is booming, the movement of goods locally and internationally is growing, we have become accustomed to buying everything far away and having it brought to us close and fast.
This logistic model by itself, brought with it enough technical difficulties such as bureaucracy, difficulty of stockageThe following are some of the key issues to be addressed in the future: communication between the links in the supply chain, technologies, governments, time, forecasts, etc... but today also brings us an exciting new challenge to think about.
What's going on in the market?
Demand is outstripping logistical capacity on all frontsThe price of transport is much higher and, of course, prices are soaring., but no matter how much the prices go up there's aíAs you can see, there are not enough competitors for China to export its goods, goods that the rest of the world is demanding.
China wants to send its products to the world but has nowhere to store them, which means that the containers have gone from about 500 -700 euros to more than 2.<strong>5</strong>00 euros on average in China/Europe tradein some cases up to 9,000 euros. Not only that, if previously a 60-day space reservation forecast was calculated on the vessels already esta exceeding 100 days.
What causes this situation
The first big problem is that the price increase is detrimental to the very sale of goods as it can cause a price break on the product you want to sell and éthis one is without a buyer. Éste The problem affects relatively little small products such as mobile phones, the price of which can be increased by about 15 cents per unit. mobile but if the product is bigger, like a car engineAs the volume per product increases, the price shoots up.
The second is that for those who are willing to pay the price they have to return the containers as soon as possible to continue importing and try to cover a demand that is escaping them.
Another curious aspect is that many companies used the containers as a warehouse for goods because of their low cost to leave them in the fields until they needed them, now when prices rise, these containers are needed, the goods in them will go to the warehouses, golden opportunity for them, but they can already make holes and move the goods faster.
The bottlenecks formed by operational and physical limitations and COVID restrictions only aggravate this situation so the scenario is quite curious.
The great solution
Building more containers would be a great plan if it weren't forthat the crisis reaches the container production lines themselves, which are saturated and are giving 3-month delivery times due to excessive demand. In addition, they are constructing moreáThis is not enough, so we will now add delays to the transport prices.
Sending something will cost more money, and if you want it soon, too.
Consultant in Logistics and Supply Chain Technologies