As the lead time for Chinese exports to the US east coast remains just over two months, the urgency for US importers to bolster their stocks and supply levels intensifies. According to Flexport’s Ocean Timeliness Indicator (OTI), current cargo transit times from China to the east coast sit at 61 days. This gives US importers limited time to prepare, as strike action could occur after September 30th, when the current International Longshoreman Association (ILA) and US Maritime Alliance (USMX) contract terminates.
With contract negotiations yet to begin due to disagreements over port automation, industry leaders like Lars Jensen, CEO of Vespucci Maritime, emphasise that this week is the “last chance” for an average US import shipper to move products for arrival before a potential strike hits US East and Gulf coast ports.
Jensen also urged: “Some shippers might have a shorter landside operation in China and/or use a more expedited shipping route, but even these are, in the near term, hitting the point where any additional cargo shipped on this route runs the risk of being impacted by labour disruptions.”
The OTI also showed that the China-to-US west coast lead time was approximately 40 days, while the China-to-Europe lead time increased from 69 days to 69.5 days. This is due to European port congestion nearing pandemic highs, and previous delays caused by extreme weather around the Cape of Good Hope posing ongoing challenges. Therefore, European lead times are expected to fall over the coming weeks as the bottlenecks from delays are resolved, returning ports to within expected delay timeframes.
The Importance of Supply Chain Visibility
In light of these ongoing challenges with growing lead times, implementing supply chain visibility software is more critical than ever. By providing real-time data and insights, BCOs and LSPs are more able to understand current lead times and expected delays on their trade routes. This allows for proactive action to be taken to counteract disruptions, ensuring timely and continued operations.
The subtle yet significant need for such visibility underscores the comprehensive approach required to navigate today’s complex supply chain landscape. Firms equipped with real-time insights are better positioned to mitigate risks, optimise operations, and maintain continuity in the face of uncertainties, thereby setting new standards for efficiency and resilience in global trade.