Topic of the month:
Blockchain in Logistics - how can this technology help your business thrive?
Blockchain, cryptocurrencies, nodes, tokens, and other similar terms have been all the rage in recent years. But, behind all the jargon, the essential question is: how can all this technology progress promote a better logistic environment? In this month's topic, you'll learn how blockchain is facilitating sharing data across different networks and providing improved visibility to the logistics industry.
• To begin, it is necessary to define what the blockchain is in basic terms. The blockchain is a shared database in which multiple participants can add information. This data is organized into chronological chunks called blocks. Before being added to the blockchain, each new transaction must be validated by the network to ensure reliability and accuracy; then the data is secured, making collaborative sharing possible.
• On a traditional database, you could remove or add information, but in the blockchain, you can only add new information. As a result, falsifying information becomes more difficult, if not impossible.
• A blockchain database accelerates workflows with multi-source information, transaction visibility and real-time tracking. Blockchain improves efficiency by reducing manual paperwork facilitating business digitalization and automation.
• AP Moller Maersk Group, in partnership with IBM, developed a blockchain-based solution called TradeLens, which is an open and neutral industry platform, supported by major players across the global shipping industry.
• TradeLens brings together all parties in the supply chain including beneficial cargo owners, freight forwarders, inland transportation providers including rail and trucking, ports and terminals, ocean carriers, customs and other government authorities—onto a single, secure data-sharing and collaboration platform. The TradeLens objective is to provide real-time end-to-end visibility by connecting the ecosystem.
Major Trade Lane Market Overview
|Trade lane||Comments||Demand trend|
|WCSA to Asia||No major changes compared to June; copper exports remain strong; fishmeal season did not fully start, yet||Stable|
|Asia to WCSA||While volume continues to recover from locked-down locations, the market is expecting a strong demand into Q3 with rates increases for spot cargoes. The long-term segment is also improving hence vessels are sailing full into LAM across carriers. Only remaining risk is the Zero-Tolerance Covid policy in China, risking to resume closures upon any new identified cases.||Increasing|
|Europe to WCSA||Volumes have remained stable on the higher side and are expected to last as is until European summer holidays impact in August. Thanks to this strong demand, the market has been able to recover largely from Ukraine/Russia conflict volume impact, yet only needed to consider North Europe ports contingencies effect on loadings and reliability.||Stable|
|WCA to WCSA||Changes in consumption trends in the US market have resulted in a stronger push for the short-term market; current demand is still healthy, so the outlook is positive from both India and Middle East Americas||Stable|
|Asia to ECSA||Volume is almost fully recovered after lockdowns were eased, market demand for Q3 has already started strong and with rates increases on the spot market. The long-term segment is also improving hence vessels are sailing full with some carriers putting additional capacity in place. As potential risk, China is still under Zero-Tolerance covid policy, so closures upon new identified cases can be expected.||Increasing|
|Europe to ECSA||The Mediterranean market continues strong and steady with only potential risk being the summer holidays effect on August loadings. North Europe is under pressure from operational contingencies in the ports plus shortage on items imported from Ukraine/Russia affecting industrial sectors.||Stable|
|WCA to ECSA||After some weeks of slowdown, demand is improving, and the short-term market is more dynamic. Available space resulting from demand shifting in the US will enable the market to do more on the spot basis while keeping the long-term contracts as well.||Stable|
|East Coast to Asia|| Protein continues to drive the demand pattern upwards in the reefer segment.|
Cotton crop is expected to gradually ramp up from August onwards.
|East Coast to Europe|| In general terms, there is a stable demand for main Dry commodities into European countries such as coffee, paper and grains. Reefer wise, citrus exports are heading towards the peak season now in July. |
A combination of ongoing port congestion at the main hubs with certain strike actions are posing additional challenges to the schedule reliability.
Main port status
Key ports across our global network remain stressed mainly due to shortage of labor (COVID contamination) and weather impact.
• In Northern Europe, situation in Rotterdam has deteriorated and with experienced waiting time of 4 - 5 days due to busy line-up and yard congestions same as Bremerhaven from 3-4 days.
• In Asia, the situation in Ningbo has improved this month reducing the waiting time from 2 - 3 days.
• In Latin America the situation related weather disruption is impacting Chile and winter is around the corner however no big impact on the line up, we can see an improvement compared to last month, for Itapoa and Buenos Aires due to high yard utilization vessels arriving out of window, has a waiting time of more than 24 hrs.
• In North America, West Coast the situation has improved but still high experienced waiting time. Long Beach has reduced its waiting time to 8 days due to yard congestion, same as Los Angeles from 22 days and Oakland with 5 - 10 days due to labor shortage. For the Canadian ports, Vancouver has deteriorated, and we can reach up to 40 days of waiting time, however in Prince Rupert situation has improved with 2 days of waiting time. For the North America East Coast, situation in Savannah has deteriorated due to delays from different services, reaching waiting time of 10 - 12 days, same as Houston due to labor restrictions and draft issues we are facing an impact of more than 7 days of waiting time, Northfolk, North Charleston and Charleston waiting time has improved to decrease of export volume and high empty evacuations done having waiting time of 1 day.
Vessel Arrival Waiting Time Indicator
|Less than 1 day||1 – 3 days||3 – 7 days|
|Latin America||SSA/ Manzanillo, Lazaro Cardenas, Veracruz, Altamira, Moin, hubs (Balboa, MIT, PSA, Cristobal and Cartagena), Buenaventura, Callao, Guayaquil, Valparaiso, San Antonio (Chile), Santos, Paranagua, Itajai, Montevideo.||Itapoa, Buenos Aires|
|Rest of the world||Vietnam, Singapore, and Malaysia, Norfolk, Charleston, North Charleston, Jacksonville, Port Everglades, Tampa||Philadelphia, Seattle, Miami, Freeport, Newark APMT, Baltimore, New Orleans, Mobile, Antwerp, London, Hamburg, Qingdao, Hong Kong, Busan, Ningbo, Yantian, Shanghai, Tauranga, Prince Rupert (*)||Rotterdam, Bremerhaven, (*), Vancouver, Long Beach, Los Angeles, Savannah, Oakland, , Newark PNCT, Houston (*)|
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