Slow Steaming Stretches Supply Chain

“These are desperate times for consumers, so cheap prices from Asia are more important than before,” says Drewry.
By Patrick Burnson, Executive Editor
April 02, 2013 - SCMR Editorial

During the past few years much has been reported about the transfer of manufacturing from Asia to countries located closer to western markets, but much of it appears to be “hype over substance,” say supply chain analysts for Drewry Maritime Research.

According to the London-based think tank, near shoring will increase, but off a very low base, so its impact on deep-sea ocean carriers is unlikely to be significant in the short-term. In fact, carriers are likely to continue “slow steaming” to elongate the supply chain in the Asia-EU trade lane.

“These are desperate times for consumers, so cheap prices from Asia are more important than before,” says Drewry.

Predicting the situation after that is dangerous due to the uncertain growth rate of internet shopping, which will soon demand same-day delivery, add analysts. This is a more immediate “revolution” confronting retailers, with up to 10% of all retailing in Europe likely to be conducted over the internet by 2016, according to Jones Lang LaSalle.

Another more immediate trend will be the transfer of production away from China to cheaper Asian countries.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

NRF's Jonathan Gold explains that the past year was replete with disruptions, slowdowns and partial shutdown, which can no longer be the norm, saying ports and dockworkers must adapt to ensure they provide shippers with the predictability and stability they need.

Last month, I gave a presentation to a group of senior transportation and supply chain executives. It was entitled “Predictable Surprises,” because it addressed how transportation and supply chain professionals can eliminate unpleasant surprises by looking at and evaluating issues in the transportation industry, and projecting how those issues will affect their companies.

The Port of Los Angeles (POLA) and the Port of Long Beach (POLB) said this week that they have formally established working groups, which they said will aim to seek new supply chain efficiencies, and focus on various aspects of port operations, including peak operations and terminal optimization in an effort to augment the San Pedro Bay port complex.

A month ago, the Shippers Conditions Index (SCI) from freight transportation consultancy FTR indicated that shippers might be traveling on a rocky road in the coming months. And one month later it appears those concerns appear to have been confirmed.

The American Association of Port Authorities (AAPA) had nothing but praise for the Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015).

Article Topics

Blogs · Supply Chain · Manufacturing · Deliver · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.