It’s easy to blame the COVID-19 pandemic on the global supply chain disruptions, but that does not represent the whole picture. Factors such as the pandemic, labor shortages in the warehousing and trucking industries, equipment shortages, and shifting consumer purchase patterns are partly responsible for delivery delays. However, trucking shortages mean opportunities for those looking for careers as truck drivers.
Global Chain Supply Links
Understanding the different global supply chain links is critical to appreciating how a delay can cause ripple effects down the chain. The global supply chain refers to international intermodal shipping. The process involves loading products into intermodal containers and later onto cargo ships overseas. The products then travel inland on trains and trucks for first- and last-mile delivery.
Several parties are responsible for handling containers in the supply chain link. These include:
- Beneficial cargo owners who own the goods inside containers
- Ocean carriers are the companies operating ships carrying containers
- Ports are the places handling the loading and unloading of containers from vessels
- Railroads are the companies that ship containers inland over long distances
- Trucking is responsible for moving containers to and from ports, railroad facilities, and final delivery. Learn how to become a truck driver today.
- Chassis suppliers are the equipment companies providing the frame on which containers travel by truck
- Warehouses and distribution centers are the places where containers end up after shipment.
These parties must deliver on their commitments and work together for the supply chain to run smoothly. A break or delay in one chain link affects the other links down the road.
Disruptions in the Global Supply Chain
Below are seven causes of recent supply chain disruptions.
- The COVID-19 Pandemic
COVID-19 caused significant challenges for the global supply chain. Multiple national and local shutdowns slowed and stopped the flow of finished goods and raw materials, which disrupted manufacturing as a result. However, many argue that the pandemic did not create new challenges but only highlighted previously unseen vulnerabilities.
Many organizations suffered staff and equipment shortages and losses due to the pandemic. However, the good news is that the pandemic has driven enterprises to improve their supply chains and make them more resilient, networked, and collaborative.
- A Surge of Ships
Once governments started lifting national shutdowns, the supply chain saw a surge of ships as manufacturing facilities ramped production to replenish low inventories and fill market gaps. The result was a surge of cargo ships at the ports.
- Limited Unloading Capacity
The increased number of cargo ships at the ports faced another problem – limited unloading capacity. There were more ships than berths, causing delays as ships waited offshore for unloading. COVID-related labor shortages further complicated matters.
- Disrupted Unloading Processes
A backlog of unloading capacity means the ports cannot unload containers into destination-based stacks to ease the sorting process, causing further delays.
- Equipment and Labor Shortage
Labor and equipment shortages mean containers must wait until a chassis is available for transport. Additionally, when you cannot move a container out of an intermodal terminal (outgating), you must stack it for storage until you can outgate it.
- Warehouse Backups
Warehouses have also seen labor and equipment shortages. Delays result in intermodal facilities storing containers with products, and once they are full, they cannot accept any more. Therefore, containers will remain at the ramp until they have a destination.
- Storage Constraints and Delayed Trains
It’s impossible to unload containers from trains unless the intermodal facility has room for the cargo. Additionally, trains cannot arrive with containers if the ramp does not have capacity.
The global supply chain is interdependent on every link, and a delay could disrupt the chain. In addition, transporting goods requires precise coordination among all the players involved. Fortunately, there are numerous careers as truck drivers available across the US.
John Angelo, Transforce
