Aiming to provide relevant and up-to-date information to help you navigate your supply chain.
Our North American gateway terminals are mainly stable at this time, and we have sufficient availability of dry and reefer equipment to cover customer requirements. After the May 1 Labor Day holiday in Asia, we have seen a return of pre holiday demand levels. Sea Intelligence reported our parent company Maersk as the most reliable carrier in the first quarter of 2023, with schedule reliability of 63.6% and Hamburg Süd ranked the 3rd most reliable.
Some vessels on our services routing into the U.S. East Coast via the Panama Canal have been impacted as a result of low water levels. The Panama Canal Authority’s May 3 advisory stated that, based on the present and projected level of Gatun Lake for the upcoming weeks, effective May 30, the maximum authorized draft allowed for vessels transiting the Neopanamax locks will be 44 feet. This latest reduction reflects a drop of 5’6” since restrictions were first announced on March 1.
The Authority reported in mid-April that precipitation in the Canal watershed was approximately 70% below the historical average.
In compliance with the draft restrictions, we have adjusted network planning and vessel loading accordingly. We have also secured an extra loader for additional capacity into the U.S. East Coast in an effort to reduce impacts to customers.
We anticipate that the onset of Panama’s annual rainy season beginning in June may bring much needed relief and a gradual reduction in draft restrictions.
Our Ocean Team reports that vessel schedules and terminals remain fairly stable and fluid. Overall, there is minimal vessel wait times at North American ports. However, many terminals are taking advantage of this lower volume, pre-peak season to conduct routine maintenance, construction, and dredging operations.
Charleston is experiencing one day of the waiting time, which can be attributed to dredging activity for all three berths at Wando that is expected to continue for the next couple of weeks. Weekend gates are available with terminal request submissions.
In Savannah, we're seeing anywhere from zero to two waiting days, depending on vessel class status. Savannah is undergoing a berth construction project that is contributing to some sporadic delays. Construction is expected to be completed by the end of December.
In the Pacific Northwest, we are still seeing around three days of vessel wait time in Vancouver, with eight days on the rail dwell. Seattle continues with Friday gate closures due to activity.
There are no significant issues to report in the Pacific Southwest or Gulf coast, other than the note that Houston discontinued Saturday gates as of April 29.
How Maersk Air Freight benefits your supply chain
In a fast-paced and competitive market, your logistics strategy needs to keep evolving, to turn challenges into opportunities. Maersk Air Freight uplift your transposition by an end-to-end supply chain coverage with integrated logistics solutions enabling fewer touch points from origin to destination. Visit our Air Freight information page to learn more!
Need a quote? Contact us with your origin/destination, desired timeframe, cargo type, carton, or pallet requirements and whether you need a one-off or regular shipments, and our Maersk Air Freight specialists will get back to you ASAP. For more information, visit Maersk.com
Landside Updates – Warehousing and Distribution
Go-to-Market Adjustments for the Post Pandemic Marketplace
What percentage of sales should be e-commerce vs. offline? This question is top of mind for many Hamburg Süd customers as they plan beyond the pandemic.
Businesses that weren't selling direct to consumers during the pandemic missed a significant opportunity. According to Forbes, e-commerce sales in 2021 had risen 50% over 2019 sales. Today, with the ebbing of the health crisis, the growth of e-commerce has slowed. However, e-commerce is still expected to strengthen globally over time as more people become comfortable ordering online, mobile devices proliferate, delivery options increase, and transit times to customers decrease. Increasingly, consumers will want hybrid buying experiences where they view products in stores, place online orders, and expect on-time deliveries as promised by the vendor.
Given these changing trends, many of our customers are reviewing their go-to-market strategies to effectively balance between "bricks and mortar" and direct-to-consumer (D2C) approaches.
Some businesses find they need to do much more to develop their D2C capabilities, while online companies aim to get their products on shelves in stores where foot traffic is significant. Each strategy has its marketplace advantages but also particular supply chain and operational requirements. Today’s consumer wants what they want, where they want it, when they want it. As consumers increasingly expect an omnichannel buying experience, most enterprises need to improve their ability to deliver on at least one of these fronts.
While many supply chain functions are common to both "bricks and mortar" and D2C channels, there are unique competencies particular to each. Often, companies have well-established practices in one channel as compared to the other, but omnichannel excellence requires proficiency in multiple areas of the supply chain. Key supply chain and warehouse distribution competencies for selling into each channel are highlighted below:
Bricks and Mortar Competencies
- Strict “Routing Guide” compliance requirements
- Shipping window adherence
- Routing of outbound orders with retailer
- Exact label generation and placement
- Specific bill of lading requirements
- Advance Shipping Notice (ASN) timeliness and accuracy
- Timely trucker pickup and scheduling
Direct to Consumer Competencies
- Customer experience consistency for every event of the fulfillment process
- Same-day order fulfillment
- Distribution facilities equipped for labor-intensive "each picking"
- Small parcel cost management and transit time controls
- Returns processing capable of managing 15% to 20% of orders
The routing guide compliance referenced above remains central to operational excellence for the complex web of parties along the supply chain, whether they're manufacturers, importers, wholesalers, or retailers. These documents outline the conditions necessary to ensure supply chains run smoothly. Failure to comply could result in costly, but altogether avoidable, fees.
Visit our parent company's Warehousing and Distribution pages for more omnichannel insights.
Our parent Company Maersk Opens Supply Chain Innovation Center
On May 15, Maersk announced additional strides in its journey of integrating global logistics with the inauguration of its global Innovation Center in Jersey City. The center benefits from a wide-ranging collaborative network encompassing no less than 11 universities, nine enterprise partners, eight venture capital firms, and five government partners.
Multiple pilot projects implemented at Maersk facilities across North America are currently highlighted in the Center, which overlooks the Manhattan skyline. The Center's objective is to deliver innovations that lead to greater supply chain predictability and the im proved efficiency that reduces waste and costs for customers.
Advancements that enhance accuracy in the supply chain are key for enabling more precise delivery timelines. Successful pilot projects deemed ready to scale are implemented at other Maersk locations around the globe.
As detailed in its release, Maersk has already achieved several successes as a result of its investments in innovation. For example, the company has formed partnerships with MIT's Center for Transportation and Logistics for research, introduced new warehouse fulfillment software from Fetch, and has implemented the use of innovative equipment from Boston Dynamics. Maersk’s commitment to innovations on the sustainability front is embodied in its investment in 460 electric-powered Class 8 trucks in service of its North American customers.
Customers can visit the Innovation Center’s website to learn more about the projects in progress that cover areas such as traceability, predictive data and analytics, sustainability, and accelerating transportation. Both customers and entrepreneurs are welcome to reach out to the Center’s staff of professionals to explore collaborative opportunities for co-creating the future of supply chains.
Our parent company Maersk’s air freight fleet carries donated U.S. relief supplies to earthquake survivors
For most, the powerful earthquakes that struck Türkiye and Syria on February 6th were a passing headline of a tragic event. However, for millions in the effected region, the devastation remains a part of daily life. In response to the severe hardship, Maersk united with logistics providers and non-profits last month to send much-needed relief supplies from the U.S. to those in need.
The relief mission included 440 pallets of privately donated relief goods. The supplies included essential items such as clothing, bedding, food, first aid supplies, and even solar-powered lights - all provided by generous U.S. companies including: Amazon, Hello Bello, Nice-Pak, KIND, CVS Health, AmerisourceBergen, Cora, LuminAID, Coyuchi, Sew Purposeful, YouGiveGoods (Fidelity), and NPO partners Hands in Service and United Way of Lee County.
The supplies were transported to our Maersk Air Cargo facility at Greenville-Spartanburg Intl. Airport in South Carolina with the help of 12 UPS trailer trucks from LIFT Non-profit Logistics. The cargo was then repacked for Maersk Air flights to Germany on our daily Boeing 747 cargo service to Frankfurt-Hahn Airport. In all, five consecutive flights were used to transport the shipments amounting to over 130,000 Kgms. Once in Germany, the goods were to be trucked to Turkey and distributed by Good360.
Be sure to visit our parent company Maersk “Insights” pages where we explore the latest trends in supply chain digitization, sustainability, growth, resilience, and integrated logistics.
We value your business and welcome your feedback. Should you have any questions on optimizing your cargo flows, please contact your local Hamburg Süd professional.