The long-standing issue of container shipping’s “hurry-up-and-wait” scenario continues to plague the industry, leading to inefficiencies, higher CO2 emissions, and mounting costs. In this all-too-familiar situation, box ships race to catch up on schedules by increasing speed, only to find themselves anchored outside their destination ports, waiting for a berth to become available. Estimates suggest that this inefficient practice increases container shipping’s CO2 emissions by up to 15%, a staggering figure that adds to the industry’s carbon footprint and hinders global decarbonisation efforts.

While technology has long been touted as the solution to this problem, the reality is that neither VSAT broadband, digitalisation, machine learning, nor AI have been able to make “smart-steaming” a widespread practice. Despite years of technological advancements, the solution to smarter shipping – essentially adjusting speeds based on real-time berth availability – could be as simple as a phone call. Yet, the practice remains stubbornly elusive.

This issue persists in part because of the high demurrage charges carriers can levy on shippers, creating a perverse incentive for shipping lines to perpetuate the “hurry-up-and-wait” behaviour. As Napa CEO Mikko Kuosa explains, “Often, demurrage can be more profitable than doing normal business.” This leads to a misalignment of priorities, where the short-term financial gains from demurrage charges outweigh the long-term benefits of improved fuel efficiency and lower emissions.

Despite a growing recognition of the problem, industry efforts over the past decade to address this inefficiency have fallen short. The conflicting interests embedded in shipping contracts have thwarted progress, with incentives driving behaviour that runs counter to sustainability goals. In fact, queues of more than a dozen vessels waiting at major global ports have become routine, exacerbating the problem.

However, there is hope on the horizon. Finland’s Napa has launched its latest initiative, Napa Studio, bringing together a wide range of industry stakeholders including shipyards, owners, classification societies, and technology providers, as well as legal and commercial entities. This collaborative approach aims to create a solution that neutralises the conflicting interests embedded in contracts, realigning the shipping industry towards decarbonisation.

Kuosa emphasises that the key to solving this issue lies in sharing the benefits across the entire supply chain: “There needs to be a solution that neutralises these conflicting interests, so that shipping, from a contractual point of view, would be aligned toward this decarbonisation market.”

At the heart of this solution is the need for real-time supply chain visibility software that provides accurate data insights to help Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) make critical business decisions. By leveraging real-time data, stakeholders can optimise operations, avoid costly delays, and reduce their carbon footprint – moving towards more sustainable, efficient, and resilient supply chains.

Ultimately, smart shipping isn’t just about technology; it’s about aligning the interests of all players in the supply chain, and ensuring that decisions are driven by data that enable BCOs and LSPs to counteract potential disruptions. With the right tools in place, the shipping industry can break free from the “hurry-up-and-wait” cycle, reduce emissions, and pave the way for a more sustainable future.

A strike across US East and Gulf Coast ports is looking increasingly likely today, as the White House confirmed it will not invoke its legal authority to intervene in the ongoing labour dispute. This response comes after 177 trade associations sent an urgent letter requesting government action to avoid a strike that could cripple supply chains across the country.

The US Maritime Alliance (USMX), representing terminal employers, welcomed the plea, calling on the government to “immediately work with both parties to resume contract negotiations and prevent disruption to port operations and cargo flow.”

While the White House had previously intervened to prevent strike action, the current stance is to allow the International Longshoremen’s Association (ILA) and USMX to negotiate independently. A collective strike, however, could significantly damage the economy just as inflation trends downward. The letter sent by trade associations warned that such a disruption could have “devastating effects” on businesses that rely on fluid port operations.

The Growing Tension and the Stakes at Hand

The White House does have a powerful tool in the form of the 1947 Taft-Hartley Act, which allows for an 80-day cooling-off period if a strike is deemed to threaten national health or safety. However, the administration made it clear that it is not considering invoking this act. “We’ve never used Taft-Hartley to break a strike and are not considering it now,” a White House spokesperson told Reuters.

Both politics and trade are heavily intertwined in this matter. The Democratic Party, currently in an election year, is leaning towards supporting the unions. Still, a potential strike could have severe repercussions for the economy, leaving the administration in a difficult position.

Industry observers also speculate that ILA President Harold Daggett is aiming for a historic agreement that would solidify his legacy. Daggett has continued to take a firm stance, stating, “A sleeping giant is ready to roar on Tuesday 1 October if a new master contract agreement is not in place. My members have been preparing for over a year for the possibility of a strike.”

Preparing for Disruption: Real-Time Data Key to Mitigating Risk

As the threat of a strike looms, shippers and logistics service providers (LSPs) are advised to prepare contingency plans. Angel Rodriguez, president of forwarder ASF Air, emphasised that shippers should be seeking alternatives and discussing solutions with service providers. “Shippers should be discussing contingency plans with their service providers now, to identify solutions, including air freight, that will keep their production lines moving undisturbed,” Rodriguez said. He noted that many clients have already begun securing full and part-charter flights to ensure they have sufficient stock in case of disruption.

If the strike materialises, air freight is expected to become exceptionally busy in Q4, with costs potentially skyrocketing as shippers look to air cargo to sidestep the effects of a port shutdown. But air freight is only one part of the solution.

Real-Time Visibility: A Critical Edge in Uncertain Times

In this volatile environment, the need for real-time data insights and supply chain visibility has never been clearer. The implementation of supply chain software capable of providing instant, actionable information is essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make business-critical decisions quickly. With real-time visibility, companies can better manage inventory, pivot to alternative transportation options, and mitigate risks related to strikes and other unforeseen disruptions.

Moreover, supply chain visibility tools can monitor climate impact and optimise routes to reduce environmental footprints, further aligning with sustainability goals. With the looming strike, businesses equipped with these tools will be in a far stronger position to counteract the economic and operational impacts on their supply chains.

The stakes are high, and as the clock ticks down to 1 October, companies must arm themselves with the technology and insights necessary to weather whatever disruption lies ahead.

Typhoon Bebinca, the strongest storm to strike Shanghai since 1949, has wreaked havoc on the city’s vital container terminals, causing severe disruptions and highlighting the vulnerability of global supply chains to extreme weather. As the storm made landfall early Monday, it forced vessels to divert from Shanghai’s two key ports—Yangshan and Waigang—leading to significant congestion and erratic departures. The ripple effects from this storm have now spread across Southeast Asia, putting further strain on the global shipping network.

According to data from Windward AI, the immediate impact was stark: port calls at Shanghai plummeted by 56% from Friday to Saturday and a further 95% into Sunday, with neighbouring Ningbo experiencing an 86% drop in vessel arrivals before coming to a complete standstill on Sunday. The storm’s aftermath is expected to persist for over a week, with delays of up to 60 hours for ships attempting to berth in Shanghai and up to 48 hours in Ningbo.

This disruption comes at a particularly challenging time, as southern China and Vietnam are still reeling from Typhoon Yagi’s impact just a week prior, causing heavy congestion in ports like Yantian, where ships are currently facing a four-day wait to berth. Further compounding the issue, ongoing disruptions in the Red Sea and rerouting of vessels around Africa’s Cape of Good Hope have worsened bottlenecks at major Southeast Asian ports, including Singapore and Kelang.

S&P Global reports that container operations at Shanghai and Ningbo were suspended starting Saturday and Sunday, respectively, with no sign of a quick recovery. Kuehne + Nagel’s Seaexplorer tool also indicates “heavily disrupted operations” at both ports. As of Monday, 36 vessels were anchored near Shanghai and Ningbo, intensifying the backlog.

Despite these challenges, industry analysts such as Linerlytica suggest that these disruptions are unlikely to reverse the current downward trend in long-haul freight rates. Demand for cargo remains weak, with carriers fiercely competing for market share in anticipation of upcoming alliance reshuffles.

Climate and Supply Chain Visibility: A Critical Need

The chaos unleashed by Typhoon Bebinca has brought to light an urgent need for real-time supply chain visibility tools, which can provide immediate insights to assist Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) in making critical, data-driven decisions.

Given the increasing frequency of climate-related disruptions, such as typhoons and storms, the capacity to predict, monitor, and react in real-time is essential to minimising delays and financial losses. Visibility software with advanced data analytics could enable firms to swiftly adjust routes, optimise inventory levels, and forecast alternative port solutions. Without these capabilities, BCOs and LSPs risk navigating blind in the face of major disruptions like Typhoon Bebinca.

Beyond the shipping sector, the typhoon’s broader impact has been severe. Flights at both Pudong and Hongqiao International Airports were cancelled, railway operations at Shanghai Railway Station were suspended, and highways imposed strict speed limits. Winds reached 151 kph (94 mph), and torrential rainfall—up to three inches in some areas within an hour—crippled infrastructure. Over 400,000 people were evacuated, with 30,000 households losing power, and more than 10,000 trees were felled by the storm.

As Typhoon Bebinca moves inland towards Anhui and Henan provinces, it is expected to weaken, but heavy rainfall of up to 12 inches is still forecast for the region over the next 48 hours. The timing of the storm, coinciding with China’s three-day Mid-Autumn Festival holiday, adds further complexity to recovery efforts.

Embracing Technology to Navigate Supply Chain Disruptions

As the global shipping industry faces increasingly unpredictable challenges, there has never been a more pressing need for implementing real-time supply chain and climate visibility software. Such tools can provide the critical insights BCOs and LSPs need to make proactive, informed decisions to mitigate the impact of extreme weather events. Typhoon Bebinca serves as a harsh reminder that without these technological advancements, supply chains remain vulnerable to severe disruptions, resulting in delays, financial losses, and uncertainty.

In September 2019, Amazon made waves by announcing its ambitious Climate Pledge, committing to reach net-zero carbon emissions by 2040. It was seen as a bold move, positioning the e-commerce giant as a leader in sustainability. Yet, a recent report from the Stand.Earth Research Group, Ship It Zero, and Pacific Environment casts doubt on the company’s environmental progress, exposing a staggering 25% increase in CO2 emissions since the pledge’s launch.

This report brands Amazon’s green initiatives as “greenwashing,” revealing that despite its public commitments, the company’s carbon footprint continues to climb. Between 2019 and 2023, emissions from Amazon’s logistics network skyrocketed, particularly within air transport, which saw a 67% increase in emissions. Airfreight now accounts for more than 42% of the carbon emissions for every parcel delivered through Amazon’s U.S. system. The company’s heavy reliance on air transport and fossil fuel-powered delivery vans — whose emissions have surged 195% — are seen as major contributors to its rising carbon footprint.

The Cost of Speed: Air Freight and Carbon Emissions

The growing role of air transport in Amazon’s logistics network has been a key driver of emissions. Between 2019 and 2023, emissions from airfreight surged, contributing to the 5.84 million tonnes of CO2 from transporting goods in 2023. Airfreight was initially ramped up to counteract port disruptions during the pandemic, but remains a significant source of emissions as Amazon continues to prioritise speed over sustainability.

Despite introducing initiatives such as the deployment of 120,000 electric vans by 2030, these efforts are seen as insufficient. Even with this fleet, annual emissions growth would only decrease marginally, from 36% to 35%. Given its dominance in the U.S. e-commerce market, where it controls 38%, Amazon holds the market power — and responsibility — to make significant changes in its logistics network.

The most concerning area is Amazon’s aviation operations, which contributed 2.5 million tonnes of CO2 in 2024 alone. With 93 planes in operation, the environmental impact is profound. However, transparency around Amazon’s aviation emissions remains limited, as the company outsources much of its logistics to third-party carriers, making it difficult to assess the full environmental impact.

Lack of Transparency: An Ongoing Challenge

While Amazon’s competitors, such as UPS and FedEx, provide more detailed reporting on their environmental footprint, Amazon lags behind. Critics argue that Amazon’s limited transparency makes it difficult for stakeholders, including Logistics Service Providers (LSPs), to fully understand the environmental impact of their operations and make informed business decisions.

A pressing need exists for real-time data insights that can provide BCOs and LSPs with critical visibility into their supply chains. By leveraging technology that offers real-time monitoring of carbon emissions and logistics efficiency, businesses could counteract the impacts of climate-related disruptions and optimise their operations.

Such tools are essential for companies like Amazon, where fast-paced expansion demands greater oversight. For instance, despite Amazon’s recent pledge to deploy 100,000 electric vans by 2030, a report from Stand.Earth estimates the company will need 400,000 electric vehicles to fully decarbonise its logistics network at its current growth rate.

Moving Forward: The Path to Zero Emissions

As Amazon’s logistics operations continue to expand, the environmental toll is expected to increase. Despite Amazon’s public commitments to sustainability, its “Shipment Zero” initiative, which aimed to make 50% of shipments net-zero by 2030, has been quietly dropped, raising further concerns. Projections suggest that Amazon’s overall emissions will grow at an annual rate of 5.5% to 11.5% through 2030.

Amazon Employees for Climate Justice, an internal group, has also raised questions about the company’s claims regarding renewable energy achievements, further challenging its green credentials. The Science Based Targets Initiative (SBTI), a UN-backed organisation, recently removed Amazon from its list of climate-conscious companies for missing deadlines related to emission reduction targets.

With Amazon holding such a significant share of the logistics market, its decisions have wide-reaching impacts. Critics argue that cutting reliance on air freight would be an obvious first step in reducing emissions. Joshua Archer, a senior campaigner at Stand.Earth, suggested, “If Amazon is serious about climate progress, stop flying so much.”

Without stronger commitments to decarbonisation and greater visibility into its operations, Amazon’s environmental promises risk being perceived as hollow. By embracing real-time data solutions, Amazon and its partners could gain the insights needed to reduce their carbon footprint and make the operational shifts necessary to achieve genuine sustainability.

The maritime industry is at a pivotal juncture. As shipping giants scramble to meet increasingly stringent decarbonisation targets, a fresh challenge has emerged—soaring costs for liquefied bio methane (LBM), which has long been considered the natural successor to LNG (liquefied natural gas). Lloyd’s Register (LR), a leading UK ship classification organisation, has sounded the alarm: shipowners and their eco-conscious customers need to brace themselves as the price of LBM continues to rise compared to other biofuels.

Shipping companies have been looking to biofuels as a critical solution to meet the upcoming FuelEU guidelines. These regulations, kicking off in January 2024, impose increasingly aggressive CO2 emissions reductions, culminating in an 80% reduction by 2050. Yet, while many biofuels are expected to become cheaper between 2020 and 2030, LBM bucks this trend.

Maersk’s Shift and the Industry’s Growing Dilemma

Major players like Maersk, which had originally hoped to spearhead an e-methanol bunkering industry, have begun pivoting towards LNG, with a transition to LBM as a second step. However, LR cautions that the supply of biofuel feedstock is limited and must be shared across multiple transport sectors. This constraint, combined with the discrepancies in carbon emissions reduction between different biofuels, could lead to misinformed decisions by shipowners and customers alike.

For example, used cooking oil biodiesel (UCO) can reduce CO2 emissions by an impressive 84%, making it compliant with the EU’s toughest upcoming environmental regulations. On the other hand, palm oil biodiesel, produced with an open effluent pond (where methane is not captured), only delivers a 20% reduction in emissions. Meanwhile, hydrotreated vegetable oil (HVO), which can replace conventional heavy bunker fuel, offers a modest 22% reduction.

Environmental concerns compound the issue, with reports of deforestation for palm oil production potentially resulting in a higher carbon footprint than conventional fossil fuels. LR’s report concludes that, although biofuels are produced in many countries, their scale is better suited to percentage blending in marine fuel rather than a full replacement for fossil fuels.

The Need for Supply Chain Visibility Tools

In this complex and shifting landscape, shipowners and customers cannot afford to be in the dark. Real-time supply chain visibility tools are becoming essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make business-critical decisions. These tools can provide detailed insights into carbon emissions, fuel costs, and operational efficiencies, empowering companies to adapt to market changes rapidly and minimise their environmental impact.

Visibility tools not only help manage rising costs and carbon reporting requirements but also assist in aligning with the evolving regulatory framework, ensuring that businesses remain competitive and sustainable. With biofuel price fluctuations and environmental complexities on the rise, having access to real-time data is no longer a luxury—it’s a necessity.

By embracing advanced visibility software, shipping companies and LSPs can stay ahead of the curve, optimise their supply chains, and, most importantly, contribute meaningfully to global decarbonisation efforts. As the race to a cleaner shipping future intensifies, those equipped with real-time insights will be best positioned to navigate these challenging waters.

After months of escalating tensions and repeated “warning strikes,” a breakthrough has finally been reached in the labour dispute between Germany’s Ver.di union and the Central Association of German Seaport Companies (ZDS). The dispute, which had disrupted operations at key German ports, including Hamburg, saw Ver.di and ZDS reach a tentative agreement on a new contract after a fifth round of negotiations.

The conflict, initially triggered by disagreements over wages and working conditions, had severely impacted port operations, particularly at the Port of Hamburg. In September, dockworkers at Hamburg’s HHLA-operated container terminals launched another strike, further disrupting the flow of goods. The timing was significant, as it coincided with growing dissatisfaction over Hamburg’s Parliament approving MSC’s acquisition of a 50% stake in HHLA. The strike left HHLA’s intermodal operation, METRANS, struggling, as the Port of Hamburg halted the acceptance of trains, leading to delays of over 24 hours in some cases. METRANS warned that these disruptions would increase transport costs, which the company could no longer absorb.

Despite the heightened industrial action, a tentative agreement was reached on 6 September, with Ver.di calling the latest offer “viable.” The agreement includes base wage increases backdated to 1 October 2023, and further hikes starting on 1 January 2025. Additionally, all workers will receive an inflation compensation bonus of €1,700, and improvements will be made to holiday, Sunday, and overtime pay rates. The contract is set to cover a 14-month period, expiring on 31 July 2025.

Ver.di’s Federal Collective Bargaining Commission has recommended members accept the offer, with the final decision due on 27 September, based on member surveys. If ratified, the agreement will bring much-needed stability to one of Europe’s largest ports after months of unrest.

What’s Next for the Industry?

The labour deal in Germany may have brought temporary stability to the country’s ports, but the larger lesson here is the importance of supply chain resilience. The ability to adapt swiftly to disruptions is key to maintaining operational continuity. Implementing advanced supply chain visibility software will be a game-changer for companies, providing the transparency they need to react in real-time to events that affect their supply chains. From labour strikes to climate-related delays, the future belongs to those who can see—and act—faster.

As the global logistics industry continues to face evolving challenges, companies that prioritise transparency, data-driven decision-making, and sustainability will be best positioned to weather the storms ahead.

 

 

 

The Importance of Real-Time Supply Chain Visibility

The labour unrest in Germany’s ports serves as a stark reminder of how vulnerable global supply chains are to external disruptions. The strikes in Hamburg not only delayed port operations but also had a cascading effect on logistics providers, particularly Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs). METRANS’ warning about rising transport costs due to these disruptions highlights the broader challenges that supply chains face in absorbing sudden shocks.

In this context, the need for real-time supply chain visibility has never been more apparent. Implementing robust software solutions that provide up-to-the-minute data insights allows BCOs and LSPs to make critical business decisions that can help mitigate the impacts of industrial action or other unforeseen disruptions. Real-time data on port delays, cargo flows, and climate impacts can help businesses reroute shipments, adjust inventory levels, and manage customer expectations with greater precision.

With growing concerns around climate change, real-time visibility into a company’s carbon footprint is also crucial. Monitoring the environmental impact of supply chain operations allows firms to make more informed decisions about the sustainability of their logistics strategies. In an era where sustainability is becoming as important as profitability, having access to this level of insight is not just a luxury—it’s a necessity.

In February 2025, a major shift will take place in global shipping alliances with the formation of the Premier Alliance, a new partnership that brings together Ocean Network Express (ONE), HMM, and Yang Ming Marine Transportation. This five-year collaboration aims to bolster service reliability and extend global coverage across vital East-West trade routes, including Asia-North America, Asia-North Europe, Asia-Mediterranean, and Asia-Middle East.

According to Jeremy Nixon, CEO of ONE, the Premier Alliance will provide strong and highly dependable direct port services along these critical trade lanes. Nixon highlighted the alliance’s commitment to improving end-to-end coverage for customers, ensuring that businesses can depend on reliable shipping solutions for their supply chains in an increasingly uncertain global market. To this end, the Premier Alliance has also secured a slot exchange agreement with Mediterranean Shipping Company (MSC)—the world’s largest container line—which will take effect in early 2025. This partnership will encompass nine services on the Asia-Europe trade, enhancing direct port coverage and increasing the frequency of sailings, further strengthening the network.

This alliance forms in the wake of significant changes in the shipping landscape. Hapag-Lloyd’s exit from the current THE Alliance to join Maersk in the newly formed Gemini Cooperation has left ONE, HMM, and Yang Ming to restructure and solidify their competitive position. Alongside the formation of the Premier Alliance, ONE has announced its expanded East-West trade services, which will include Asia-Europe, Transpacific, and Asia-Middle East routes, offering more than 80 direct port calls—an important move to meet the evolving needs of their customers while maintaining high levels of reliability and expanding their global reach.

Meanwhile, MSC has been making waves by building up its fleet and moving towards operating independently across global tradelanes. By 2025, the company will have 34 standalone loops across five East-West trades, solidifying its position as a dominant force. However, the strategic slot-sharing agreement with the Premier Alliance highlights a cooperative approach that could enhance network flexibility for both parties and provide improved shipping solutions across key markets.

The Growing Need for Real-Time Visibility in Supply Chains

Amidst these sweeping changes in the shipping industry, the Premier Alliance represents more than just a strategic partnership. The complexities of global trade, fuelled by unpredictable market conditions, climate change, and geopolitical tensions, underscore the growing necessity for supply chain visibility. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) increasingly face the challenge of managing these disruptions while maintaining efficiency and profitability.

To mitigate these challenges, the need for real-time data insights has never been greater. Supply chain visibility software, powered by real-time climate impact data and operational insights, can equip BCOs and LSPs to make business-critical decisions that address the volatility in their supply chains. This level of visibility allows for more accurate forecasting, quicker response times, and a deeper understanding of potential risks. The Premier Alliance and MSC’s expansive direct port coverage present opportunities for BCOs and LSPs to leverage this visibility, optimising shipping schedules, reducing delays, and improving overall supply chain performance.

In an era where sustainability and reliability are key drivers of success, companies that utilise visibility software to manage their logistics will be better positioned to counteract disruptions and achieve their sustainability goals. As the Premier Alliance reshapes the landscape of global shipping, businesses need to adapt by implementing digital tools that provide the real-time data required to stay agile and competitive.

The shipping industry’s transformation, spearheaded by the Premier Alliance and MSC, signals not only a new phase of collaboration but also a pressing call for the adoption of advanced technologies that bring end-to-end visibility to supply chains. As 2025 approaches, the companies that embrace these changes will be those that thrive in the ever-evolving global marketplace.

At the prestigious SMM Hamburg Maritime Exhibition, China State Shipbuilding Corporation (CSSC) made waves by debuting the world’s largest container ship, the GREEN SEALION 27500, with an enormous capacity of 27,500 TEUs (Twenty-foot Equivalent Units). The vessel has not only set new standards for size but also for sustainability, showcasing the future of eco-friendly marine transport.

The GREEN SEALION 27500 is a dual-fuel ship, primarily powered by LNG, which significantly reduces carbon emissions and adheres to the International Maritime Organization (IMO) Phase III carbon reduction standards. The vessel’s Approval in Principle (AiP) certificate, awarded by the DNV classification society, further solidifies its commitment to sustainable practices. But it’s not just about the cargo capacity—CSSC has optimized the hull design to improve fuel efficiency, demonstrating that environmental responsibility and operational excellence can coexist. Moreover, the ship can achieve zero emissions while docked, thanks to its integration with shore power systems.

Expanding the Fleet of Green Marine Technology

In addition to the GREEN SEALION 27500, CSSC introduced several other revolutionary vessels that continue pushing the boundaries of sustainable shipping:

• GREEN SEALION 20000: A 20,000 TEU ammonia dual-fuel container ship, which takes a bold step towards reducing emissions by using ammonia, an alternative fuel that further lowers carbon output.
• GREEN SEALION 16000: A 16,000 TEU LNG dual-fuel container ship designed with an enhanced energy-efficient wide-body structure, ensuring optimal cargo capacity while minimising its environmental impact.
• Advanced Liquefied Gas Carriers: CSSC also revealed two cutting-edge vessels, a 103,000 cubic metre Very Large Ethane Carrier (VLEC) and a 93,000 cubic metre Very Large Ammonia Carrier (VLAC). Both ships are designed to transport LPG, ethane, and ammonia, featuring state-of-the-art propulsion and energy-saving systems to further advance green shipping solutions.

Driving the Future of Sustainable Supply Chains

These technological advancements in shipping are undeniably impressive, but their success hinges on more than just the ships themselves. To truly maximise the environmental and operational benefits, businesses and shipping companies must adopt and intergrate supply chain and climate impact visibility software. Real-time data insights provided by these systems allow Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make critical, data-driven decisions.

With real-time visibility, stakeholders can accurately track shipments, monitor environmental conditions, and anticipate disruptions, all while ensuring compliance with climate regulations. As the shipping industry faces increasing pressure to reduce its carbon footprint, such technology will be essential to navigating the complexities of modern logistics.

The ability to monitor key metrics like fuel consumption, port delays, and CO2 emissions enables BCOs and LSPs to mitigate risks and improve supply chain resilience. By integrating visibility software, companies can make informed decisions that not only optimise logistics but also support broader sustainability goals, ensuring that the transition to green shipping becomes a reality.

A Call to Action for the Future of Logistics

The debut of the GREEN SEALION 27500 and its sister vessels marks a pivotal moment for the global maritime industry. CSSC has set a new benchmark for container ships, but the next step for the industry must involve empowering BCOs and LSPs with the real-time data needed to manage the impact on their supply chains. The future of logistics depends on visibility, and as these groundbreaking ships take to the seas, the tools to monitor and mitigate supply chain disruptions must sail alongside them.

The shipping industry has recently witnessed a significant rise in weather-related cargo losses and insurance claims, driven by carriers being forced to navigate the perilous waters around the Cape of Good Hope. With the ongoing threat of Houthi attacks in the Red Sea, vessels have been re-routing to southern Africa, exposing themselves to extreme weather that they would typically avoid.

Over the past 270 days, this re-routing has led to a string of incidents involving cargo damage or loss. In fact, between 2 June and today, five major incidents have been recorded, highlighting the increasing risks associated with this route. According to maritime claims consultant MK Webster, these events include:

• 2 June: Car-carrier Hoegh London sustained structural damage off Port Elizabeth, leading to significant cargo damage.
• 8 July: Ultra Galaxy developed a heavy list in challenging conditions off South Africa’s west coast, forcing the crew to abandon the ship. The vessel later ran aground and capsized.
• 9 July: CMA CGM Benjamin Franklin lost 44 containers overboard in rough seas south of Durban, with a further 30 containers sustaining damage.
• 15 August: CMA CGM Belem suffered a collapse of containers on deck, losing 99 boxes overboard near Richards Bay.
• Most recently, MSC Antonia lost 46 containers overboard, with another 305 damaged, 29 nautical miles northeast of Port St Johns.

Patrizia Kern, chief insurance officer at Breeze, an embedded cargo insurance provider, emphasised the rising risk: “Higher-than-average wind speeds around the Cape of Good Hope, combined with ongoing turmoil in the Red Sea, have led to an unprecedented surge in insurance claims.”

Why Has Cargo Loss Surged?

Historically, ships would steer clear of the rough seas near South Africa, especially during the transition from winter to spring in the southern hemisphere. Last year, during the same period, there were no reported container losses in the region. However, the geopolitical challenges in the Red Sea have forced shipping lines to brave the Cape of Good Hope’s treacherous conditions, leading to this surge in incidents.

The World Shipping Council even noted that 2023 saw the fewest recorded container losses since it began tracking the data in 2008. This only underscores how much of an outlier this year’s incidents have been.

A critical factor behind these losses is a phenomenon known as parametric rolling. This occurs when the wavelength of the ocean matches a vessel’s rolling motion, increasing the angle of each roll with every wave. This can cause stacks of containers to buckle, resulting in collapses and cargo going overboard. According to an analysis by TT Club, while wave height is an important factor, wave length and period play an even more crucial role in inducing dangerous rolling conditions.

Implications for Insurance and Shipping Costs

With weather now emerging as the most influential factor in cargo loss around the Cape, insurers are bracing for the consequences. Ms Kern noted: “If this trend of increased cargo claims continues, we can expect a corresponding rise in insurance premiums.”

However, despite the alarming rise in claims, Ms Kern does not anticipate a specific surcharge for vessels transiting the southern hemisphere. “The exact impact will depend on various market factors, such as the availability of capacity,” she said. Historically, overcapacity in the shipping market has tended to drive premiums down, and this trend may continue as new players enter the sector.

The Need for Supply Chain Visibility and Climate Impact Software

As vessels continue to navigate these unpredictable waters, there is a growing need for businesses to invest in real-time supply chain and climate impact visibility software. By offering instant insights into weather patterns, shipping routes, and potential risks, such tools can provide Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) with the critical data needed to make informed decisions.

With weather now an unpredictable yet critical factor in cargo safety, these tools enable stakeholders to adjust operations, mitigate risks, and protect their supply chains from sudden disruptions. In an era where both geopolitical and environmental challenges are shaping global trade, the importance of visibility cannot be overstated.

By integrating these data-driven solutions, BCOs and LSPs can better anticipate weather impacts, reroute vessels in real-time, and manage their insurance premiums effectively, ensuring continuity and reducing the risk of catastrophic losses.

In the rapidly shifting landscape of global trade, India is positioning itself as an increasingly attractive alternative to China, particularly in manufacturing and supply chain operations. According to recent insights from Transport Intelligence (Ti), India is emerging as a strong contender in the China-plus-one strategy, as global companies seek to diversify their operations away from an over-reliance on Chinese manufacturing.

A Bloomberg report highlights a major shift: this year, US tech giant Apple will manufacture its top-tier iPhone Pro and Pro Max models in India for the first time. Currently, India accounts for 14% of Apple’s global production, a figure expected to rise as the company’s assembly operations expand. Foxconn, Apple’s sub-contractor, has already begun training thousands of workers at its plant in Tamil Nadu, marking a pivotal shift in Apple’s global strategy.

Historically, Apple has relied heavily on China for both components and assembly, but its recent move into India signals a new chapter for the company. However, Ti analysts remain cautious about how much Apple’s Indian production will still depend on Chinese component suppliers. Thomas Cullen, an analyst at Ti, remarked: “The shift to Indian production by the American company has been remarkably rapid,” further noting the speed and scale at which Apple has embraced India as a production hub.

India’s Emergence as a Viable Manufacturing Hub

Cullen highlighted that while non-Chinese competitors had traditionally favoured South-east Asia, particularly Vietnam, for mobile phone assembly, Apple’s focus on India marks a significant divergence from this trend. Until recently, India was not seen as the frontrunner in the China-plus-one strategy. In fact, it was often regarded as “not very attractive” due to a range of logistical challenges.

“India had real problems with ports, roads, and internal borders,” said Cullen. “There was also a perception that the workforce lacked the necessary skills for large-scale manufacturing.”

Yet, India has made significant strides in improving its logistics infrastructure. Recent investments in Mundra Port, the addition of hundreds of thousands of kilometres of new highways, and upgrades to airfreight capabilities, such as IndiGo introducing freighter aircraft and the restructuring of Air India, have dramatically enhanced the country’s logistics network. This progress, coupled with increasing demand, makes India a compelling option for companies looking to diversify their supply chains.

The Role of Real-Time Supply Chain Visibility in Managing Risk

However, even as India rises as a manufacturing hub, businesses face a complex global trade environment. The “violent” restructuring of supply chains, driven by geopolitical tensions, cost pressures, and sustainability imperatives, makes it vital for companies to manage risks more effectively. Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) need real-time data insights to navigate these challenges, especially in new and emerging markets like India.

Supply chain and climate impact visibility software can provide these stakeholders with critical insights, enabling them to make informed decisions quickly. By offering real-time data on everything from shipment delays to environmental impacts, such technology helps companies mitigate risks and optimise their supply chains.

India’s evolving logistics infrastructure, while promising, still comes with unpredictability. For companies to fully capitalise on India’s manufacturing potential, they must integrate visibility tools into their supply chain management to counteract potential disruptions and maintain agility in an increasingly competitive market.

India’s rapid transformation into a manufacturing hub signals a significant shift in global trade dynamics, especially as companies like Apple look to reduce their dependency on China. With the right investments in infrastructure and supply chain visibility, India can continue to solidify its position on the global stage. But for BCOs and LSPs, embracing real-time data insights will be key to navigating the risks and maximising the opportunities that come with this shift.