Surge in Freight Rates Highlights Urgent Need for Advanced Supply Chain Visibility

Since the introduction of peak season surcharges (PSS) and new Freight All Kinds (FAK) levels on 1 July, the largest east-west container trades have witnessed a significant surge in spot freight rates. After a period where the focus was primarily on the escalating rates for Asia-Europe trades, the spotlight has shifted to the Asia-North America routes, which are now experiencing substantial rate increases.

Drewry’s World Container Index (WCI) reported a 12% increase for its Shanghai-Los Angeles route, reaching $7,472 per 40ft container, while Xeneta’s XSI for the Asia-US West Coast route showed a rate of $7,648 per 40ft. The Shanghai-New York leg also saw a sharp rise, with WCI recording a 17% increase to $9,158 per 40ft, and XSI reporting $9,146 per 40ft.

This trend extends beyond transpacific routes. The WCI’s Shanghai-Rotterdam leg climbed by 10%, reaching $8,056 per 40ft, and the XSI’s Far East-North Europe rate also increased, reaching $7,897 per 40ft.

Challenges and the Need for Real-Time Data

In the face of soaring demand and limited space, many Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) are paying premiums well above indexed rates to secure container space. This is impacting even the largest shippers on Asia-Europe routes, despite their substantial contracted volumes.

European freight forwarders have reported that major shippers are now required to pay additional surcharges to guarantee space for their shipments. “Importers and large BCOs are starting to feel the pinch as space becomes scarcer,” noted one forwarder. “Even carriers maintaining full volume commitments are operating at 30% to 40% reduced space. By mid-July, retailers on contracts are facing $3,000-$4,000 surcharges on some of their shipments to get them onboard.”

This situation underscores the critical importance of implementing visibility supply chain software. With real-time data insights, BCOs and LSPs can make informed, strategic decisions to manage the impacts on their supply chains more effectively. As the market tightens and rates rise, access to timely information on shipment status and market trends becomes crucial.

Market Outlook and Strategic Planning

Industry experts widely agree that the current elevated rates will likely continue through China’s Golden Week holiday starting on 1 October, and potentially extend into the second quarter of next year. “Asia-North Europe spot rates have already surpassed $10,000 for many customers,” one analyst observed. “This trend is expected to persist until Golden Week as companies aim to avoid stock shortages for the holiday season and anticipate strong order volumes through the end of the year.”

If the peak season extends to Golden Week, there will be only a brief respite before the pre-Chinese New Year peak begins. Consequently, the market might not see a significant downturn until Q2 next year, even with additional capacity being added. Some analysts predict a further 50% increase in rates by Golden Week. “Demand in July and August is robust, and a ceiling of $15,000 is not out of the question,” one expert noted. “We are now booking four weeks in advance for some retailers, with the earliest available space around 9 August.”

The current surge in freight rates emphasises the unpredictable nature of global shipping and the essential need for advanced supply chain management tools. Adopting visibility supply chain software that provides real-time data insights is vital for BCOs and LSPs to navigate these challenging conditions. By utilising these insights, stakeholders can make critical business decisions, ensuring smoother operations and greater resilience in an ever-changing market landscape.

Surge in Global Container Traffic: Intra-Asia Trade Fuels Record Growth

Global container traffic soared to new heights in May, with Container Trade Statistics (CTS) reporting a record-breaking month. This surge was primarily driven by a substantial increase in intra-Asia trade, which experienced a year-on-year growth of 14.4%, totalling over 4.5 million TEU.

Other significant contributors to this growth included the Far East-North America trade, which saw a 5.9% year-on-year rise to just over 2 million TEU, and the Far East-Europe trade, which grew by 2.9% year-on-year, reaching slightly over 1.5 million TEU. These volume increases are now being reflected in the CTS price index, which covers both spot and contract rates, with a noticeable rise in rates for transpacific and Asia-Europe trades.

The CTS price index for the Far East-North America route increased by 12.6% year-on-year, while the Far East-Europe route saw a 15.3% rise. This trend likely reflects the impact of annual contracts negotiated this year between carriers and major shippers. Traditionally, the US contract season runs from May 1 to April 30, but European shippers are beginning to adjust their timelines, with many now running contracts from April to the end of March. A UK-based forwarder noted that retailers like Primark have adopted this new contract period, influenced by carriers’ reluctance to renew contracts during periods of low spot rates.

Hapag-Lloyd CEO Rolf Habben Jansen addressed this issue in November, stating, “We see expectation out there for contract rates that are unrealistic, and at those levels we will not close, because we’re not going to close contract rates at levels where we, for sure, will lose a lot of money.”

Geopolitical factors, such as the Houthi attacks on Red Sea shipping, have further complicated the situation, leading to vessel diversions and shifts in trade patterns. Despite these challenges, the CTS report for May also highlighted increased activity in secondary trades due to rising demand and prices.

The Far East-Middle East/India trade, now the fifth-largest trade route globally, grew by 5.3% in May, reaching 750,000 TEU, with a price index increase of 16.2% driven by congestion and equipment shortages. The Far East-Latin America trade experienced a remarkable 19.8% growth in volume, with prices soaring 40.3% year-on-year. Additionally, the Far East-Southern Africa route saw a 34.3% increase in prices despite a modest volume growth of 1.2%.

Emphasising Real-Time Supply Chain Visibility

These dynamic shifts in global container traffic highlight the critical importance of real-time supply chain visibility. Implementing advanced supply chain visibility software is essential for Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) to make strategic, data-driven decisions. By providing accurate and timely data, these tools help stakeholders mitigate the impacts on their supply chains, navigate disruptions, and optimise logistics strategies effectively.

The new data underscores the ever-evolving nature of global trade and the necessity for robust, responsive supply chain management solutions. Leveraging real-time insights will be crucial for maintaining resilience and competitiveness in the global market.

British Manufacturing Growth Slows Amid Shipping Disruptions in the Red Sea

British manufacturing activity growth slowed in June from May’s 22-month high, as ongoing disruptions to shipping in the Red Sea contributed to lower demand from overseas customers, according to a survey released on Monday. The S&P Global’s UK Manufacturing Purchasing Managers’ Index (PMI) dropped to 50.9 in June from 51.2 in May. The final reading was lower than the 51.4 recorded in the provisional June data.

S&P Global noted that the overall picture remains positive, with output and new orders both rising. However, employment fell, delivery times lengthened, and manufacturers’ input costs rose at the fastest pace since January 2023. “Shipping issues resulting from the Red Sea crisis, low stocks at suppliers, insufficient vendor capacity, and port issues all led to longer lead times,” S&P Global reported.

Despite output and overall new orders growing at close to their fastest pace in two years, export orders fell for the 29th consecutive month, primarily due to shipping delays and high freight costs. The disruptions to international shipping have been ongoing since November, caused by attacks launched by Yemen’s Houthi militants, an Iran-aligned group. These attacks are claimed to be in solidarity with Palestinians in the conflict between Israel and the militant Islamist group Hamas. Many vessels have opted to avoid the Red Sea route to the Suez Canal, instead taking the longer journey around the southern tip of Africa.

Economic Context

Official figures released on Friday showed Britain’s manufacturing sector, which accounts for 10% of the economy, grew at a quarterly pace of 1.1% in the first three months of 2024. This represents the second-strongest quarterly expansion since the start of 2021. However, goods export volumes fell by 3.5% in the first quarter. The Office for National Statistics attributed this decline largely to trading in non-monetary gold, an erratic item that often distorts British trade statistics.

Need for Supply Chain Visibility Software

To mitigate the impacts of such disruptions, the implementation of supply chain visibility software is crucial. Real-time data insights provided by this technology can assist Beneficial Cargo Owners (BCOs) and Logistics Service Providers (LSPs) in making critical business decisions. By leveraging these insights, stakeholders can effectively manage disruptions, anticipate delays, optimise routing, and adjust to changing conditions, ensuring smoother operations and greater adaptability in a dynamic market environment.

Enhancing Supply Chain Decision-Making

The strategic implementation of supply chain visibility software, combined with real-time data insights, underscores a comprehensive approach to maintaining and enhancing the operational efficiency and reliability of supply chains. This holistic strategy not only addresses current challenges but also prepares businesses for future demands, ensuring resilience and sustained growth in the face of global disruptions. By providing BCOs and LSPs with the tools needed to counteract impacts on their respective supply chains, this technology plays a vital role in maintaining the stability and competitiveness of British manufacturing in a volatile global market.

Potential Strikes in German Ports Heighten North European Shipping Concerns

Port workers affiliated with the German trade union ver.di have threatened strike action at key German hubs, exacerbating stress for North European shippers as labour tensions also rise in France.

Ver.di is organising a series of dock strikes in Bremerhaven, Hamburg, Bremen, and Emden after talks with the Central Association of German Seaport Operators (ZDS) last week ended without success. The union is demanding a €3 increase in hourly wages for port workers as of June 1, along with a corresponding increase in shift bonuses to address the lack of an increase in the 2022 collective bargaining agreement.

Negotiations continued in Hamburg on June 17 and 18, but a warning strike is taking place today in Emden. Ver.di stated, “It remains to be seen whether there will be another warning strike if the ZDS does not submit an offer in the next round of negotiations.” The union recalled that in 2022, warning strikes during talks “paralysed the ports for around 80 hours.”

Ver.di negotiator Maren Ulbrich expressed frustration, saying, “The employees are disappointed and outraged that the employers have not shown any concessions, but have only referred to their own difficult economic situation and competition with foreign ports. In doing so, they have not shown any appreciation for the work of the employees.”

Rising Labour Tensions in France

Meanwhile, in France, labour unions representing dockers and other port workers have engaged in several one-day strikes, as well as numerous four-hour work stoppages this month, protesting pension reform that increased the statutory retirement age. Additional 24-hour strikes occurred on June 21 and 25, and four-hour walkouts on three days of each week this month at ports including Le Havre, Marseille-Fos, Dunkirk, Rouen, Bordeaux, and Nantes Saint-Nazaire. The action could extend into July if the unions do not receive a satisfactory response from the government.

If strikes at Le Havre, Hamburg, and Bremerhaven coincide, ports like Antwerp and Rotterdam could be inundated with North European shippers seeking to shift capacity to fully operational ports.

Impact on Supply Chains

Freightos head analyst Judah Levine commented, “Destination ports in North Europe and North America are not reporting significant congestion yet. Disrupted schedules at origins could lead to some vessel bunching at these hubs, but with elevated volumes still expected to be seasonal and not at the levels seen during the pandemic, destination ports may be able to avoid extreme levels of congestion and delays.” However, this outlook could change drastically if negotiations fail in both Germany and France.

Enhancing Supply Chain Visibility and Decision-Making

To navigate these potential disruptions, the implementation of supply chain visibility software is crucial. Real-time data insights provided by such software will assist Beneficial Cargo Owners (BCOs) and Freight Forwarders in making critical business decisions to counteract impacts on their supply chains. By leveraging these insights, stakeholders can effectively manage disruptions, ensuring smoother operations and greater adaptability in a dynamic market environment. This technology will enhance the reliability of supply chains by enabling better planning and response strategies for all parties involved.

The combination of strategic visibility software and proactive negotiation can help mitigate the impact of labour strikes, ensuring that the global supply chain remains resilient and responsive to challenges.

Global Shipping Routes Face Challenges Amid High Demand and Congestion

**Transpacific Eastbound Routes Experience Record Volumes**

Volumes on Transpacific Eastbound (TPEB) routes remain robust, surpassing last year’s figures. Despite the strong demand, structural blank sailings due to Cape of Good Hope (COGH) routings and port congestion in Asia and North America are causing significant disruptions. These disruptions further straining American supply chains and bettering the case for more advanced visibility software for the industry. 

Current data indicates that spot rates for container shipments from Asia to North America have surged. Coming to the end of June, rates have reached record highs, with prices for a 40-foot-equivalent unit (FEU) rising by £600 to £700 depending on the destination. The ongoing strong demand, coupled with limited supply, has prompted carriers to implement general rate increases (GRIs) and Peak Season Surcharges (PSS), with further hikes expected in the coming months.

**Far East Westbound Routes Struggle with Equipment Shortages**

Far East Westbound (FEWB) routes are facing severe equipment shortages at major loading ports in Asia. Liners are repositioning empty containers to alleviate the situation, but delays due to COGH rerouting continue to impact the return of empty containers. The shortage has led to rate increases of £1,500-£2,000 per 40-foot container in the second half of June 2024, with further rises expected to come in the latter half of the year.

Port congestion in Asia is exacerbated by high yard utilisation, adverse weather, and vessel bunching, resulting in low terminal operation efficiency and long waiting times. Carriers have been frequently omitting ports to maintain transit times, and demand remains high, leading to additional PSS charges.

**Transatlantic Westbound Routes See Stable Demand**

In North Europe, Transatlantic Westbound (TAWB) routes are experiencing stable demand, with rates holding steady. However, equipment issues persist in Southern and Eastern Germany and the Hinterlands, while the Western Mediterranean faces congestion and equipment problems at key ports. Carriers plan to implement GRI/PSS from July in response to sustained demand. Booking 2 to 3 weeks in advance is recommended to ensure smooth operations.

**Export Routes Face Extended Transit Times and Congestion**

U.S. exporters are experiencing extended transit times due to routing around the Cape of Good Hope and increasing congestion at key ports. This has worsened the container equipment situation, especially at inland rail points. Key transshipment hubs for U.S. exports, including ports in Asia and the Strait of Gibraltar, are also facing congestion. Booking 3-4 weeks in advance for coastal port loading and 4+ weeks for inland rail point loading is advised to mitigate delays.

**The Need for Visibility Supply Chain Software**

To navigate these challenges, implementing visibility supply chain software is essential. Real-time data insights provided by such software assist Beneficial Cargo Owners (BCOs) and Freight Forwarders in making critical business decisions to counteract impacts on their supply chains. This technology enables stakeholders to anticipate delays, optimise routing, and adjust to changing conditions effectively, ensuring smoother operations and greater adaptability in a dynamic market environment.

By leveraging real-time data, BCOs and Freight Forwarders can better manage disruptions, maintain supply chain efficiency, and mitigate the effects of port congestion and equipment shortages. This comprehensive approach is crucial for maintaining the reliability and resilience of global shipping routes amid ongoing challenges.

Unveiling the World’s First All-Electric Berth

London Gateway, celebrating its 10-year anniversary, is set to unveil its new fourth berth later this summer. This £350 million project will increase the port’s capacity by a third and mark a significant milestone in port technology and sustainability. The new berth will be the world’s first all-electric berth, utilizing advanced technology such as electric straddle carriers and automated stacking cranes, which aligns with DP World’s vision for full electrification by 2050.

The increased capacity at London Gateway offers numerous benefits. Firstly, it will enhance trade efficiency by facilitating quicker turnaround times for ships, reducing congestion, and improving overall trade flow. This is particularly crucial for maintaining the smooth movement of goods in and out of the UK, especially post-Brexit. Additionally, the expansion is expected to generate significant economic benefits, including job creation and increased business opportunities within the logistics and supply chain sectors.

Driving Sustainability and Economic Growth

From a sustainability perspective, the all-electric berth represents a pioneering step in reducing the environmental footprint of port operations. The use of electric straddle carriers and automated stacking cranes will decrease reliance on fossil fuels, significantly lowering greenhouse gas emissions. This initiative positions DP World as a leader in sustainable port operations, contributing to global efforts to combat climate change.

Andrew Bowen (chief operating officer for UK Ports & Terminals at DP World) highlights the success of the Modal Shift Programme (MSP) at DP World Southampton as a complementary initiative to the developments at London Gateway. Since its launch in September 2023, the MSP has significantly increased the proportion of freight moved by rail, reducing carbon emissions by approximately 4,500 tonnes. The introduction of new train services has played a pivotal role in this shift, underscoring DP World’s commitment to sustainability.

These advancements are integral to DP World’s end-to-end logistics offerings, enhancing resilience and flexibility for customers. The integration of cutting-edge technology not only boosts operational efficiency but also sets a new standard for ports worldwide. By improving supply chain resilience, the enhanced capacity at London Gateway will make it easier to handle disruptions and fluctuations in trade volumes, a critical factor in today’s global economy.

The new fourth berth at London Gateway is more than just an expansion; it is a strategic enhancement that underscores DP World’s commitment to innovation, sustainability, and economic growth. This development not only benefits DP World but also strengthens the broader logistics and supply chain industry, setting a new benchmark for port operations globally.

To further support these advancements, the implementation of supply chain visibility software is crucial. Providing real-time data insights, this technology assists Beneficial Cargo Owners (BCOs) and Logistic Service Providers (LSPs)in making business-critical decisions. By leveraging these insights, stakeholders can effectively counteract impacts on their respective supply chains, ensuring smoother operations and greater adaptability in a dynamic market environment. This focus on visibility and real-time data underscores the comprehensive approach DP World is taking to not only enhance operational capacity and sustainability but also to empower its customers with the tools needed for effective supply chain management.

Deck the Halls in May: Steering Early Christmas Shipping with Real-Time Visibility

European retailers are racing to secure Christmas orders ahead of time due to escalating shipping costs and disruptions in trade routes. Vessels owned by Western firms have faced attacks in the Red Sea by Houthi rebels, spiking shipping prices. Container costs, which previously peaked in January before a brief decline, have surged once again.

Nick Glynn, head of the Buy It Direct group, emphasized the necessity of advanced planning to ensure on-time deliveries. However, this forward-thinking approach strains cash flow and warehouse space. Glynn highlighted the substantial increase in spot rates for immediate delivery, jumping from $4,500 to $7,500, impacting low-margin bulky items like furniture and kitchen appliances.

Additionally, the diversions from the Red Sea have compelled vessels to take longer routes around Africa, extending journey times to over 100 days for Asia-Europe trades. This having a knock-on effect of importers reevaluating their reordering levels and whether or not to expand their warehousing capacity to ensure consistent stock levels. Beyond the increase transit time the matter is further complicated by unreliable arrival times, with only approximately 50% of global container shipping arriving on time.

To overcome these obstacles, the implementation of visibility supply chain software is essential. Providing real time data insights, there is a substantial reduction in the informational lag for BCOs and LSPs. This reduction in lag empowers BCOs and LSPs to be more informed when making critical decisions.  By harnessing these real-time insights, BCOs and Freight Forwarders strengthen their resilience against disruptions through increasing transparency, improving coordination, and enabling informed decision-making. Ultimately, this enhanced visibility optimizes supply chain efficiency and minimizes operational costs, bolstering the overall resilience of the logistics network.

Critical Congestion at Singapore Port Spurs Demand for Advanced Supply Chain Visibility Solutions

Congestion in Singapore, the world’s second-busiest container port, has reached a critical level, compounding the shortage of ships and containers. Data from Inertia indicates that containerships have to wait up to seven days to berth in Singapore, recently seeing up to 450,000 TEU of vessels in the queue. This bottleneck at Singapore is primarily due to the diversions caused by the Red Sea crisis and shipping lines skipping the less busy Port Klang in Malaysia. Normally ships berth upon arrival or within half a day when arriving at Singapore. This discrepancy will likely cause chaos to the supply chains of the BCOs, and their downstream partners, tied up in this congestion.

Linerlytica’s report today states: “The severe congestion has forced some carriers to omit their planned Singapore port calls, which will exacerbate the problem at downstream ports that will have to handle additional volumes. The delays have also resulted in vessel bunching, which is causing spillover congestion and schedule disruptions at downstream ports.”

Asian ports are the most congested, with ports in South-east Asia accounting for 26% of global bottlenecks, while north-eastern Asian ports make up 23%. As congestion in Singapore has a considerable impact on the reliability of Asia-Europe services, trading of China’s container futures closed at a higher price of $4,209/TEU for the EC2406 contract, which expires on 24 June. The price is 6% higher than on 20 May and a 25% premium on the Shanghai Containerized Freight Index.

Not only in Singapore and Asia but globally port congestion is worsening and has tied up 2 million TEU of ships, nearly 7% of the fleet. Giving credence to the rate hikes seen across the industry. This also shows the disruption and chaos to supply chains isn’t isolated and confined to one region but instead a global problem. Limiting the available options BCOs have to realign their supply chains. And it is unlikely that congestion in Asia or globally will be rectified quickly, with The Consultancy expecting port congestion to worsen into June. This has forced operators to secure containers and vessels well beyond their normal time horizons, with some booking out to beyond September.

This critical situation underscores the need for visibility supply chain software, providing real-time data insights to assist BCOs and LSPs in making business-critical decisions to counteract the impacts on their respective supply chains.

 For BCOs, real-time data insights can help manage and mitigate the impacts of delays by providing comprehensive tracking of shipments across multiple transportation modes. This capability allows BCOs to anticipate bottlenecks, reroute cargo proactively, and maintain optimal inventory levels, thus avoiding stockouts and ensuring timely delivery to customers. Enhanced visibility also facilitates better collaboration with suppliers and other stakeholders, enabling quicker adjustments to production schedules and more informed decision-making to counteract disruptions.

LSPs similarly benefit from improved visibility by gaining the ability to monitor shipments in real time, allowing them to provide more accurate delivery estimates and improve customer satisfaction. With detailed insights into port conditions and transit times, LSPs can optimize route planning and resource allocation, ensuring efficient use of assets and minimizing delays. Furthermore, the integration of advanced analytics and predictive tools in visibility software enables LSPs to identify potential risks early and implement contingency plans, such as securing alternative transportation modes or adjusting schedules to maintain service levels despite disruptions.  

By leveraging these capabilities, both BCOs and LSPs can enhance their resilience against the pervasive challenges posed by global port congestion. Additionally, real-time tracking ensures transparency across the supply chain, enhancing coordination and communication among all parties involved, ultimately leading to improved efficiency and reduced operational costs.

Navigating Mediterranean Port Challenges: The Imperative of Supply Chain Visibility Software

The current challenges facing container ports around the western Mediterranean highlight the crucial role of supply chain visibility software in assisting Beneficial Cargo Owners (BCOs) and Logistic Service Providers (LSPs) to navigate disruptions effectively. Port executives report nearing full capacity, leading to overflowing storage yards and vessel berthing delays, primarily due to increased traffic following Houthi attacks on ships in the Red Sea.

With many analysts concluding that these delays will force companies to hold extra stock, thus increasing inventory costs. Additionally, there’s a risk to the supply of components for manufacturers, exacerbating the challenges faced by retailers and manufacturers in maintaining efficient supply chains.

Supply chain visibility software would provide real-time data insights to BCOs and LSPs, enabling them to monitor port congestion, vessel schedules, and rerouting options. With access to such information, stakeholders can proactively adjust their logistics strategies, optimize routing decisions, and manage inventory levels to mitigate the impact of disruptions on their supply chains.

For instance, as shipping lines redirect traffic via alternative routes such as the Cape of Good Hope, visibility software would enable BCOs and LSPs to track vessel movements and anticipate potential delays. They can then explore alternative transportation modes or reroute cargo to less congested ports, thus minimizing disruptions and ensuring timely delivery of goods.

Moreover, with the surge in trans-shipment traffic at ports like Algeciras and Tangier-Med, supply chain visibility software would provide insights into terminal capacities and productivity levels. Armed with this information, stakeholders can optimize port operations, allocate resources efficiently, and mitigate the risk of congestion-related delays.

In conclusion, the current challenges facing container ports in the western Mediterranean underscore the critical need for supply chain visibility software to empower BCOs and LSPs in making informed decisions to counteract disruptions. By providing real-time data insights, visibility software enables stakeholders to proactively manage port congestion, optimize routing decisions, and maintain supply chain resilience amidst evolving market conditions.

Leveraging Supply Chain Software for Enhanced Decision-Making in Asia-to-Mexico Shipping

Global ocean carriers, including MSC, CMA CGM, and Cosco, have initiated direct container shipping services from Asia to Mexico, reflecting the rising container volumes and increased Chinese investments in Mexico. 

Cosco Shipping Lines and its subsidiary OOCL introduced the Transpacific Latin Pacific 5 (TLP5) line, offering direct connections between China, South Korea, Japan, and Mexico. This move aims to enhance network coverage in emerging markets, with transit times ranging from 15 to 20 days from Qingdao, China, to Ensenada and Manzanillo, Mexico. Utilizing eight ships of 4,000 to 6,000 twenty-foot equivalent units, the TLP5 signifies a significant development in Asia-to-Mexico trade. 

CMA CGM introduces the M2X – Mexico Express Service, providing streamlined shipments from the Far East to Mexico’s West Coast. With a weekly fixed-day schedule and port rotations including Tianjin, China; Qingdao; Busan; Ensenada; Manzanillo; Lazaro Cardenas; Yokohama; Busan; and Tianjin, the M2X aims to cater to market dynamics in the region. Operating eight ships of undisclosed capacity, CMA CGM emphasizes the importance of meeting the growing demand for efficient shipping solutions. 

MSC launches a loop shuttle service connecting Asia to Mexico, augmenting coverage and frequency in response to market needs. Port rotations include Qingdao, Ningbo, Shanghai, Busan, Manzanillo, Lazaro Cardenas, and Qingdao, showcasing MSC’s commitment to providing reliable shipping services. 

The surge in import container bookings from China to Mexico, coupled with an 11% year-over-year increase in Chinese direct investments in Mexico to $135 billion in 2023, underscores the growing importance of Asia-to-Mexico shipping routes. As global manufacturing shifts away from China to locations such as Mexico, the need for greater visibility in supply chains becomes even more critical. By harnessing such technology, BCOs and LSPs can make informed decisions to counteract the impacts on their supply chains. Visibility software enables them to optimize routes, anticipate disruptions, and adapt to dynamic market conditions effectively. 

In conclusion, as manufacturing diversifies to regions like Mexico, it highlights the evolving dynamics of global trade. With the introduction on shipping routes from Asia to Mexico, the complexity of supply chains is bound to increase to new hights. Necessitating the need for  advanced tools for monitoring and managing logistics operations. Visibility software offers a holistic view of the supply chain, allowing BCOs and LSPs to identify inefficiencies, mitigate risks, and enhance overall performance, ensuring seamless operations and maintaining competitive advantage.