FEATURE Supply chain, packaging & logistics
By Simon Farnfield, Event Director at Advanced Engineering UK
Supply Chain Logistics
Supply Chain Logistics
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he marine industry remains one of the most complex and least transparent links in the supply chain, despite being responsible for the majority of the
supply chain costs. In fact, 68% of professionals said the marine supply chain as the most broken link, according to Carl Marks Advisors in partnership with SupplyChainBrain. The Review of Maritime Transport, an
of international trade by volume is transported by sea, which further emphasises the need for resilience and adaptability in this sector. The events of recent years have truly tested the industry’s limits, from the disruptions caused Despite dealing with the resulting supply shortages, increased shipping costs and strains on the just-in-time inventory model, the shipping industry continues to front challenges that may require them to rethink their supply chain strategies yet again.
Extended delivery times The ongoing attacks on merchant ships in the Red Sea, attributed to the Houthi government to global supply chains. These attacks began today. Rubymar, a bulk carrier with cargo of as a result of the Houthi attacks. These attacks are leading to disruptions in the vital maritime trade artery between Asia and Europe, with the Red Sea said to account for 12% dependent on container ships carrying essential components and commodities. Windward data, a marine analytics provider,
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UK have now doubled, leading to production suspensions at major manufacturers, like Tesla, Michelin and Volvo. Meanwhile, retailers, like Ikea and Next, have also reported inventory shortages due to these delays. In response, businesses can turn to the Just- in-Case (JIC) strategy, which involves holding chain disruptions. While traditionally used by companies unable to forecast demand accurately, JIC is now seen as a safeguard against the risks posed by supply chain breakdowns and delays.
Green shipping According to the new Green Jobs and Maritime Decarbonisation report, shipping’s demand for Forum claims that the transition to green shipping can bring jobs to the Global South in particular, where renewable energy resources are abundant.
Maritime decarbonisation will require
capacity and hydrogen production. Therefore, this will lead to a new supply chain for sourcing renewable energy, like solar, wind and hydroelectric, and converting it into green hydrogen and e-fuels, like e-ammonia. After all, the maritime industry is a major contributor to the global carbon emissions. In fact,
STAND.earth estimates that international of global greenhouse gas emissions; if it were a country, it would be the world’s sixth largest climate polluter.
As the global call for sustainable practices
grows, the marine industry must be prepared. by being on top of the latest technologies and trends.
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Automation | July/August 2024 47
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