The shipping industry is facing an alarming surge in cyber-attacks, with IT infrastructure and ransom schemes increasingly targeted by malicious actors. According to research from the Netherlands’ Stenden University of Applied Sciences, the industry endured at least 64 cyber-attacks last year—a sharp rise compared to previous years, as reported by the Financial Times.

This dramatic increase in cyber threats marks a significant shift from a decade ago. In 2013, the maritime sector suffered just three cyber-attacks, and none were recorded in 2003. The current data, derived from comprehensive reviews of company records, media coverage, and academic studies, underscores the growing vulnerability of the industry.

State-backed hackers from a small group of countries are responsible for the bulk of these attacks. Russia leads the charge, followed by China, North Korea, and Iran, together accounting for roughly 80% of the cyber-attacks that can be traced to known assailants. The rise in these attacks coincides with escalating geopolitical tensions, particularly in the wake of Russia’s invasion of Ukraine. This has prompted the International Chamber of Shipping (ICS) to issue warnings about targeted strikes on the rules-based global order, which has been vital to the shipping industry since World War II.

“The international rules-based order…the great system [that benefited shipping] since the Second World War is under threat like never before,” warns Guy Platten, secretary-general of the ICS, which represents shipowners controlling around 80% of the global commercial fleet.

One of the most destructive attacks was attributed to Russian agents in 2017, targeting Maersk. This assault took the company’s IT systems offline as part of a coordinated attack on several global corporations, demonstrating the far-reaching impact of cyber warfare on the maritime industry.

The Vulnerability Exposed by the CrowdStrike Outage

The recent outage at CrowdStrike, a leading cybersecurity firm, has further highlighted the vulnerabilities within the shipping industry and beyond. CrowdStrike’s temporary disruption revealed the heavy reliance that many organisations, including those within the maritime sector, have on cybersecurity services. The incident underscored the potential risks associated with centralised security infrastructures, where a single point of failure can expose entire networks to increased cyber threats.

For the shipping industry, this outage served as a stark reminder of the importance of having robust, multi-layered security strategies in place. The incident also illustrated the critical need for real-time visibility across the supply chain, allowing companies to detect and respond to cyber threats swiftly, even when key cybersecurity tools are compromised.

The Urgent Need for Real-Time Supply Chain Visibility

As cyber threats escalate, it is crucial for businesses within the shipping industry to adopt robust supply chain and climate impact visibility software. These tools provide real-time data insights, enabling Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make informed, business-critical decisions that can mitigate the effects of cyber-attacks and other disruptions on their supply chains.

Real-time visibility not only helps companies quickly identify and respond to cyber threats but also empowers them to navigate the broader challenges posed by geopolitical instability. By integrating advanced visibility solutions, BCOs and LSPs can enhance their operational resilience, ensuring that they can continue to deliver goods efficiently and sustainably, even in the face of rising cyber threats.

The need for such technology has never been more pressing. As the shipping industry contends with both growing cyber risks and the impacts of climate change, real-time data insights will be essential for maintaining the stability and security of global supply chains. This proactive approach will not only protect individual companies but also reinforce the integrity of the international trade system that has supported the industry for decades.

In a dramatic turn of events, a ship carrying hazardous cargo exploded at the Port of Ningbo-Zhoushan in Zhejiang province, China, around 1:50 PM local time. The explosion, which sent a massive fireball skyward and scattered debris across the port, underscores the urgent need for improved safety measures in maritime logistics.

Video footage from the state-run China News Network (CCTV) captured the fireball erupting and debris being flung high into the air. The shockwave from the blast was so intense that it caused the roof of a nearby company canteen to collapse and rattled bottles in surrounding stores. Thick black smoke was later observed rising from the cargo hold of the vessel.

The ship involved, the Dong Ming, is operated by Taiwanese container shipping company Yang Ming and was docked at the Beilun Port area. According to maritime search and rescue officials, the vessel was carrying organic peroxide, a highly reactive chemical classified under hazard class 5.2. This classification indicates that the cargo must be kept refrigerated to prevent combustion and the release of harmful fumes.

Reports suggest that the cargo’s water-cooling system was not operational, potentially due to Ningbo’s recent hot weather, which exacerbated the risk. The ship was en route from Shanghai to the Middle East when the incident occurred. Fire tugboats and response teams are on-site, and port officials are investigating the cause of the explosion. Thankfully, no injuries have been reported, but nearby residents are being evacuated as a precaution.

This incident at one of the world’s largest ports, which handles hundreds of millions of tankers, bulk carriers, and containerships annually, highlights the critical need for stringent safety measures and protocols in handling hazardous materials. The Port of Ningbo-Zhoushan’s explosive event serves as a stark reminder of the potential hazards in global logistics and the importance of ensuring robust safety systems and preparedness for such emergencies.

There’s been a lot of talk about “friendshoring” since Treasury Secretary Janet Yellen first used the term in 2022. This concept, which emphasises strengthening trade ties with allied countries to enhance supply chain resilience, marks a key distinction between the Biden administration’s approach and that of its predecessor. However, turning this idea into actionable strategy has proven challenging, partly due to a lack of detailed insights into the US’s own industrial capacity and that of its allies. 

Building Resilience Through Collaboration 

Recognising the necessity for deeper insights, the Commerce Department launched a Supply Chain Center last year to work with private sector partners on comprehensive supply chain mapping. This centre has now started trialling a supply chain exposure tool that analyses trade and customs data from the US and its allies, painting a detailed picture of supply chain risks and opportunities. 

The objective is to evaluate the robustness of supply chains in critical sectors like semiconductors, critical minerals, and consumer electronics. This tool helps determine how quickly critical inputs can be replaced from allied countries in the event of disruptions such as war, pandemics, or natural disasters. Additionally, it assesses dependencies on single nations like China or Russia. 

“We wanted to create a common operating picture and shared set of facts for supply chain discussions with allies in Europe or nations that are part of the Indo-Pacific Economic Framework,” says Grant Harris, Assistant Secretary of Commerce for Industry and Analysis. “Our baseline for those discussions too often had been, ‘we should all do more,’ and then things would stall because we didn’t have the data for a more detailed conversation.” 

Strategic Supply Chain Insights 

This effort represents the most granular attempt by the US government to map global chokepoints across various commercial sectors. According to several supply chain experts, no other nation — apart from China — is undertaking such extensive cross-border mapping. 

The Biden administration’s 100-day report on supply chains identified general vulnerabilities in areas like chips, critical minerals, and pharmaceuticals. Subsequent legislation, notably the Chips and Science Act, has aimed to address these vulnerabilities. However, this new tool offers more specific insights into vulnerabilities several layers deep in the supply chain. 

For example, while Indo-Pacific Economic Framework (IPEF) nations might collectively appear to have a secure 33 percent market share of a crucial electronics component, this tool reveals that the majority of this supply comes from a single country that imports most of its inputs from China. 

Despite limitations in real-time data and the complexity of creating a comprehensive map, the tool is a significant advancement in understanding global supply chain dynamics. Harvard Business School professor Willy Shih points out that supply chain visibility can uncover surprising dependencies, such as the concentration of roofing nail suppliers in Beijing. While these are less concerning than dependencies on electrical steel or broadband infrastructure, they underscore the importance of detailed supply chain mapping. 

The Role of Real-Time Data and Insights 

To ensure the success of such initiatives, implementing supply chain and climate impact visibility software is crucial. This technology provides real-time data insights, essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make informed, business-critical decisions. For instance, real-time tracking of Scope 3 emissions from shipments allows companies to monitor emissions as they occur, enabling a more agile and responsive approach to sustainability goals. 

Real-time visibility not only helps achieve environmental targets but also allows stakeholders to navigate supply chain impacts more effectively. This ensures smoother operations and greater adaptability in a dynamic market environment. 

Advancing Friendshoring and Supply Chain Resilience 

The new supply chain exposure tool aims to identify major risk hubs, facilitating more strategic and effective conversations with trade partners. For example, can global demand for antimony ore, essential for battery alloys, be met by Australian supply? Can more laptop components be sourced from the Netherlands? 

Supply chain experts like Shih and Christopher Gopal, a member of the DoD’s Defense Business Board, see value in risk mapping. However, they emphasise that real demand signals are necessary to create economically sustainable shifts in global supply chains. Knowing where supply lies is one thing; making it economically viable to produce goods in rich countries is another. 

This is where friendshoring comes into play. Envisioning partnerships around electric vehicles or clean tech that involve sourcing critical minerals in Australia, leveraging Japanese production capacity, and utilising the power of the US consumer market can create competitive, sustainable products. 

As more is known about global production, a less nationalistic and more cooperative conversation about creating global supply chain resiliency may emerge. This goal has bipartisan appeal in the US, where the Promoting Resilient Supply Chains Act, which aims to codify risk mapping, passed the House unanimously. Eliminating chokepoints is a universally agreed objective. 

In conclusion, the new supply chain exposure tool and the emphasis on friendshoring are pivotal steps toward a more resilient, efficient, and sustainable global supply chain. These advancements, combined with real-time data insights, empower BCOs and LSPs to make informed decisions, ultimately enhancing the robustness of global trade networks. 

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.

The LEGO Group has launched a groundbreaking Supplier Sustainability Programme, urging its suppliers to take significant steps towards reducing carbon emissions. This initiative, which aims to cut emissions by 37% by 2032 and achieve net-zero by 2050, highlights the crucial role suppliers play in the company’s ambitious sustainability goals.

A Call for Collaboration

Over 99% of the LEGO Group’s carbon emissions originate from its supply chain, encompassing raw materials, machinery, and various services related to LEGO products. Recognising this, Annette Stube, the LEGO Group’s Chief Sustainability Officer, emphasised the necessity of collaboration: “A net-zero world is simply not possible unless we find solutions that extend beyond our own operations. We need to work in partnership with our suppliers to ensure a healthy planet for future generations.”

Steps Toward a Sustainable Future

The Supplier Sustainability Programme is a key component of the LEGO Group’s climate action strategy, which includes reducing energy consumption and transitioning to renewable energy. The company has already increased its solar capacity by 16% compared to 2022 and plans to double it by 2026. Additionally, an annual Carbon KPI has been introduced to monitor emissions across its factories, stores, and offices, ensuring progress toward short-term goals.

Carsten Rasmussen, LEGO Group’s COO, underscored the importance of sustainability in business practices: “Sustainability is a licence to operate and a requirement of how we do business, including how we select our suppliers. We have ideas and a pathway, but we cannot do it alone. The power of working together is crucial to creating real, lasting change and a more sustainable future.”

Key Supplier Requirements

Building on the Engage-to-Reduce programme launched in 2014, the new Supplier Sustainability Programme outlines specific actions suppliers must take:

– Provide data on carbon emissions associated with their products and services.

– Set near-term targets for emission reductions by 2026 and further reductions by 2028.

– Collaborate with the LEGO Group to develop initiatives to meet these targets, such as improving facility efficiency, switching to renewable energy, and finding less carbon-intensive transportation methods.

Starting this year, suppliers will be required to submit annual reports detailing their progress. The LEGO Group will support these efforts by sharing knowledge, particularly in carbon accounting, and offering access to a team of sustainability experts.

A Blueprint for Others

The LEGO Group’s Supplier Sustainability Programme is more than a call to action—it’s a comprehensive framework designed to foster collaboration, innovation, and sustainable practices across the supply chain. This initiative sets clear steps and goals, encouraging suppliers to significantly reduce their carbon emissions and embrace sustainable practices.

The programme’s success relies on the collective effort of all stakeholders. By setting near-term and long-term emission reduction targets, providing real-time data insights, and offering access to sustainability expertise, the LEGO Group is creating a model that others can follow. The adoption of this framework can lead to:

1. Industry-Wide Transformation: As more companies in the supply chain adopt these sustainable practices, the ripple effect could lead to a significant reduction in overall industry carbon emissions. This transformation can set new benchmarks for environmental responsibility in the manufacturing and logistics sectors.

2. Enhanced Innovation: Encouraging suppliers to innovate and develop new technologies or methods to meet sustainability targets can lead to breakthroughs in energy efficiency, renewable energy adoption, and low-carbon transportation solutions. This can stimulate a wave of technological advancements that benefit the entire industry.

3. Stronger Partnerships: The collaborative nature of the programme can strengthen relationships between the LEGO Group and its suppliers, fostering a sense of shared purpose and mutual support. This can lead to more resilient supply chains, better prepared to handle disruptions and challenges.

4. Improved Brand Reputation: By taking a leading role in sustainability, the LEGO Group enhances its brand reputation as an environmentally responsible company. This can attract like-minded partners, customers, and investors, further promoting sustainable business practices.

5. Regulatory Compliance and Leadership: As governments around the world increasingly focus on environmental regulations, companies that proactively implement such sustainability frameworks will be better positioned to comply with new laws and regulations. Moreover, they can influence policy by demonstrating effective and scalable solutions.

6. Long-Term Cost Savings: Sustainable practices often lead to increased efficiency and reduced waste, resulting in long-term cost savings. Companies that adopt the framework can benefit from lower energy costs, reduced material usage, and other operational efficiencies.

In conclusion, the LEGO Group’s Supplier Sustainability Programme is a visionary blueprint that, if successfully adopted and implemented, can drive significant positive change across the entire supply chain and beyond. By building a foundation of sustainability, innovation, and collaboration, the LEGO Group is not only working towards its own environmental goals but also paving the way for a greener and more sustainable future for all.

The Role of Real-Time Data and Insights

To ensure the success of this programme, implementing supply chain and climate impact visibility software is essential. This technology provides real-time data insights that are crucial for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make informed, business-critical decisions.

For the LEGO Group, real-time tracking of Scope 3 emissions from their own and their partners’ shipments will be particularly valuable. This capability allows them to monitor emissions as they occur, enabling a more agile and responsive approach to achieving their sustainability goals. By continuously observing emission changes, LEGO can more effectively adjust their strategies to mitigate shipping-related emissions, ensuring they stay on track to meet their environmental targets.

Beyond achieving environmental targets, real-time visibility will allow the LEGO Group and their partners to navigate impacts on their respective supply chains more effectively. This ensures smoother operations and greater adaptability in a dynamic market environment.

The recent disruption and delays to air cargo services due to a global IT outage have underscored the fragility of supply chains worldwide. 

On Friday the 19^th of July the global IT blackout highlighted the fragile nature of global logistics and supply chains. This blackout was caused from a faulty update to the Microsoft cybersecurity software, deployed by Crowdstrike, which temporarily grinded certain supply chains to a dead stop. From road haulage not being able to access the Port of Felixstowe to major air hubs in Europe, Asia and North America grounding all air traffic. Meanwhile, seaport and rail port operations seemed to have been minimally affected by the outage. 

Whilst all supply chains are complicated, air supply chains are particularly so and disruptions of this kind will have knock on effects for weeks according to Xeneta’s chief airfreight officer, Niall van de Wouw. As resources and cargo aren’t where they are supposed to be when they supposed to be, causing supply chains to be reshuffles to compensate. 

There is an added component with Air Freight due to the current capacity limitations being experienced in the sector. Data from Xeneta suggests that global demand for air freight in June jumped 13% year to year. These two factors reinforce that air freight will take time to recover from the IT outage. 

However, it seems that this may only be the case for certain airhubs with others being better prepared by having contingencies in place to deal with the exact outage that was experienced on Friday. This was the case with Heathrow Airport as “Operations quickly returned to business as usual. While some systems for some airport partners were impacted by the global IT issues on Friday morning, contingencies were put in place and flights continued to operate.”, according to a spokesperson. 

As mentioned earlier the operations of sea and rail ports were minimally affected by the IT blackout this does not mean they won’t feel ripple effects in the coming days and week in these respective ports. For instance, a greater a level of congestion is likely to be experienced at most ports. Due to the lack of onward travel caused by the blackout of Friday. Although industry analysts have concluded that this disruption shouldn’t last past the end of the week. 

Beyond the delays and disruptions caused by the IT blackback, it will act as a stark reminder to the whole of the supply chain industry just how vulnerable and fragile it is.  With technology acting as a source of life and innovation in the industry but also be the ultimate source of its demise should it not be there, such as was seen on the Friday 12^th. Underpinning the need for redundancies and alternative systems to be in place and tested frequently, thus minimising the affect of future outages on the industry, 

The Need for Real-Time Data Insights

These disruptions highlight a critical need for visibility in supply chains through real-time data solutions. By implementing advanced supply chain visibility software, Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) can gain vital insights to make business-critical decisions quickly. These insights enable stakeholders to counteract impacts on their supply chains, ensuring smoother operations and greater adaptability in the face of disruptions.

Investing in technology that provides real-time data not only helps mitigate the immediate effects of such outages but also builds a more resilient supply chain capable of withstanding future challenges. As the global logistics landscape continues to evolve, the integration of robust data analytics and visibility tools will be essential in maintaining operational continuity and efficiency.

Liege Airport, a crucial hub for ecommerce shipments into Europe, has reported a significant 15% increase in tonnage during the first half of this year, reaching 566,117 tonnes. Cargo movements also surged by 12%, totalling 12,987. Last year, the airport handled 1,005,676 tonnes, and projections for 2024 indicate continued substantial growth.

Chief Executive Officer of Liege Airport, Laurent Jossart, attributed this expansion to a growing roster of airlines and logistics providers. “With over 40 airlines and more than 50 logistics providers, including newcomers like Hong Kong Air Cargo and My Freighter Airlines, Liege Airport is diversifying its market presence,” noted Mr. Jossart. “We anticipate sustained positive momentum throughout the year.”

However, the airport faces challenges stemming from the influx of ecommerce imports from China, prompting recent scrutiny over customs procedures. Known for its operational flexibility, capacity, and round-the-clock operations, Liege remains a favoured hub for cargo airlines.

Despite its smaller size, Liege Airport handled 95,514 tonnes in June alone, marking a robust 21% increase year-on-year. In contrast, Frankfurt Airport reported 178,324 tonnes for June, up 11.4%. This growth rate positions Liege Airport as a market leader, surpassing the global demand increase reported by Xeneta, which stood at 13% in June.

The ecommerce sector continues to propel this growth, with airlines keen to capitalise on expanding market opportunities. Lufthansa Cargo, for instance, has announced additional flights to China in response to rising demand. “The ecommerce segment, particularly in the Chinese market, is growing steadily,” stated Lufthansa Cargo CEO Aswin Bhat. “We see high demand, especially for routes to Europe.”

Lufthansa Cargo has recently integrated Shenzen Boa’an Airport (SZX) into its freighter network with twice-weekly flights, while also increasing flights to Zhengzhou (CGO), now operating three times a week. Zhengzhou, a hub for Cargolux and attracting attention from Challenge Group, is poised for expanded operations.

Enhancing Supply Chain Visibility

In light of this dynamic growth, the importance of robust supply chain visibility software becomes increasingly apparent. Real-time data insights are crucial for BCOs and Logistics Service Providers (LSPs) to navigate disruptions and optimise supply chain operations effectively. Such technologies empower stakeholders to make informed, timely decisions, ensuring resilience and efficiency amidst evolving market demands.

As Liege Airport continues to expand its footprint and handle burgeoning ecommerce volumes, integrating advanced supply chain visibility solutions will play a pivotal role in sustaining operational excellence and meeting customer expectations in the competitive global logistics landscape.

With the Red Sea crisis showing no signs of abating, vessels travelling between Asia and Europe are increasingly opting to reroute around the Cape of Good Hope. This change presents a fresh challenge for European importers and their logistics service providers (LSPs): identifying the final cut-off date for Christmas goods departing from Asia.

The Surge in Spot Rates: Is This an Early Peak Season?

Over the past two months, the logistics industry has been abuzz with discussions about the causes behind soaring spot rates. A key question is whether we are witnessing an early peak season. Many European forwarders believe this to be the case, which raises another question: when will it end?

This year, the Asia-Europe peak season is expected to conclude two weeks earlier than usual. This adjustment makes the timing of China’s Golden Week holiday particularly challenging. Starting on 1 October, China halts operations for a week, leading to a rush at ports beforehand to maximise cargo exports, often followed by a surge once work resumes.

“If you don’t get your cargo on the ship and miss the last vessel out of Asia at the end of September, peak season will be very challenging. That’s when we’ll start to see a spike in air freight,” a senior forwarder told The Loadstar.

Timing for Christmas Shipments: The Crucial Dates

Most retailers aim to have all goods in their system two weeks before Christmas, meaning all shipping and transport from ports must be completed by 10 December at the latest. Considering current haulage booking waits in the UK, which are around seven days, vessels need to arrive by approximately 23-24 November. Proforma schedules from several carriers indicate that the current transit time from Shanghai to Felixstowe is between six and seven weeks, assuming no delays.

For example, the 2M’s AE55/Griffin Sweeper service, departing Shanghai on 5 October, is scheduled to arrive at Felixstowe on 16 November. Another departure from Shanghai on 12 November has an ETA of 23 November, both with transit times of 47 days. The Ocean Alliance’s NEU1 and NEU6 services advertise transit times of 42-44 days for the same route.

However, with global schedule reliability currently at around 50% and vessel arrivals averaging five days late, it is uncertain whether cargo loaded on these ships during Golden Week will reach the UK in time for distribution and retail by Christmas.

The Importance of Real-Time Supply Chain Visibility

In light of these challenges, the implementation of real-time supply chain visibility software becomes essential. This technology provides Beneficial Cargo Owners (BCOs) and LSPs with critical data insights, enabling them to make informed business decisions and mitigate supply chain disruptions.

“I believe this is indeed an early peak season, but I also think it will extend until Golden Week. After discussions with customers, they are aware of the current challenges and do not want to risk having no stock for Christmas. They are planning for strong orders up to that point,” a forwarder explained to The Loadstar.

Real-time data insights from visibility software can help manage these complexities, offering accurate information on vessel locations, potential delays, and alternative routes. This proactive approach is vital for navigating the early peak season and ensuring the timely delivery of Christmas goods despite ongoing disruptions.

In conclusion, as the Asia-Europe peak season shifts earlier and the Red Sea crisis persists, the necessity for real-time supply chain visibility is clearer than ever. By leveraging advanced technology, BCOs and LSPs can enhance their decision-making capabilities, ensuring resilience and efficiency in their supply chains during these critical periods.

The market share of independent container shipping services on major east-west deep-sea trades has been on the rise in recent months, nearing levels observed during the pandemic. New data from Sea-Intelligence Consulting reveals this significant shift, underlining the dynamic nature of global shipping and the critical need for advanced supply chain visibility software. Such technology offers real-time data insights, aiding Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) in making pivotal business decisions.

Sea-Intelligence Consulting reports that nearly one-third of services on the transpacific trade over the next three months are anticipated to be provided outside traditional vessel-sharing agreements. This includes express services independently operated by alliance-member carriers. “The Asia-North America West Coast tradelane is poised to see a sharp increase in the capacity share of non-alliance services in the coming months,” stated Sea-Intelligence chief executive Alan Murphy. “The data shows that nearly 30% of the deployed capacity on the tradelane is scheduled to be offered on services operated outside of the alliance structures.”

Key Developments and Statistics

This trend extends beyond the transpacific trade. A similar pattern is emerging on the Asia-North Europe tradelane, although it is less pronounced on the Asia-North America East Coast and Asia-Mediterranean routes. “On Asia-North Europe, if the current 12-week outlook holds, we will see record levels – touching 12% – of non-alliance capacity,” Murphy noted.

Among these independent services is MSC’s new Asia-North Europe Britannia service, which will make its first European stop at the UK port of Liverpool. Additionally, Ellerman City Lines is returning to the trade with several China-UK sailings scheduled for this month and the next, having initially entered the trade during the pandemic demand surge.

Market Dynamics and Future Prospects

Murphy highlighted that the surge in demand for goods, coupled with rising spot rates, has driven a significant increase in non-alliance capacity. This trend was evident even in traditionally alliance-dominated trades like Asia-North Europe, which saw the entry of several niche carriers offering standalone services. Although many of these carriers exited the trade when spot rates fell in late 2022 and early 2023, the market has once again shifted in their favour.

“Across the main east-west trades, it is clear that the main driver of the non-alliance share is spot rates; a sharp increase during the pandemic triggered a sharp increase in non-alliance services – and vice versa when spot rates collapsed in the second half of 2022. This pattern is now repeating, as the sharp spot rate increases seen in recent months again coincide with an increase in non-alliance services,” Murphy explained.

However, a more fundamental change is expected next year with the conclusion of the Maersk and MSC 2M partnership. MSC, which now controls around 20% of global container shipping capacity, will operate entirely outside the formal alliance structure, signalling the end of an era where east-west trade was predominantly controlled by three vessel-sharing agreements.

The Importance of Real-Time Data Insights

Given these market shifts, the implementation of supply chain visibility software becomes indispensable. By providing real-time data insights, this technology supports BCOs and LSPs in making informed, business-critical decisions. In the face of dynamic industry changes, having accurate and timely information is essential to mitigate potential impacts on supply chains. This comprehensive approach highlights the necessity of leveraging advanced technology to enhance operational resilience and efficiency in a rapidly evolving market.

In conclusion, the resurgence of independent shipping services underscores the fluidity of global trade and the vital need for cutting-edge visibility tools. As the industry navigates these transformations, stakeholders equipped with real-time data insights will be better positioned to succeed in this competitive landscape.