A trade lane (or trade route) refers to a specific pathway along which goods are transported between two or more locations, typically across international borders. Trade lanes are established based on the flow of goods and the economic relationships between countries or regions. They encompass both maritime and air routes and play a crucial role in global supply chains by facilitating the movement of goods and fostering international trade.
Transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.
Transloading refers to the process of transferring goods or cargo from one mode of transportation to another, typically from one type of truck or railcar to another, or from rail to truck and vice versa. This logistical practice is often employed to optimize transportation routes, reduce costs, and improve overall efficiency in supply chain operations.
A Transportation Management System (TMS) is a specialized software solution designed to streamline and optimize transportation and logistics operations within supply chains. It provides functionalities to effectively manage and control the movement of goods from origin to destination.
Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.
A transshipment is the process of transferring goods from one transportation vehicle or vessel to another during their journey from origin to destination. It typically occurs at intermediary points along the supply chain route, where cargo is transferred between different modes of transportation, carriers or vessels.
Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.
An Ultra Large Container Vessel (ULCV) is a massive container ship used on major trade routes, capable of carrying over 14,000 TEUs.
Vendor Managed Inventory (VMI) is a supply chain management strategy where the supplier or vendor takes responsibility for managing the inventory levels of their products at the customer's or retailer's location. In this arrangement, the vendor monitors the inventory levels based on agreed-upon criteria such as sales data or inventory levels, and initiates replenishment as needed.
Verified Gross Mass (VGM) is a term used in the shipping industry to refer to the total weight of a packed container, including its contents and packaging materials. It is a crucial requirement mandated by the International Maritime Organization (IMO) under the Safety of Life at Sea (SOLAS) convention to enhance safety in maritime transportation.
A floating structure with its own mode of propulsion designed for the transport of cargo and/or passengers. In the Industry Blueprint 1.0 "Vessel" is used synonymously with "Container vessel", hence a vessel with the primary function of transporting containers.
A vessel sharing agreement (VSA) is a cooperative arrangement between shipping companies that allows them to share space and resources on vessels for specific routes.
Vessel bunching refers to the situation where multiple vessels arrive at a port simultaneously or within a short period, leading to congestion and delays. This clustering of vessels can overwhelm port facilities, causing extended wait times for berthing, loading, and unloading operations.
A vessel call sign is a unique identifier assigned to a ship for radio communication purposes. It is used to distinguish the vessel from others in maritime communication systems, including VHF radios and satellite communications.
A vessel omission (sometimes called a port omission) occurs when a scheduled vessel does not call at a planned port during its voyage. This disruption means that the vessel skips the port entirely, which can impact the transportation and delivery schedules of goods.
In cargo shipping, vessel rotation is the planned sequence of port calls that a shipping vessel follows on its route to optimize cargo loading and unloading operations.
The timetable of departure and arrival times for each port call on the rotation of the vessel in question.
A journey by sea from one port or country to another one or, in case of a round trip, to the same port.
Warehouse utilization is a logistics metric that refers to the effective use of available warehouse space for storing goods and inventory.
Order for specific transportation work carried out by a third party provider on behalf of the issuing party.
Logistics yard management refers to the process of overseeing and controlling the movement of trucks, trailers, containers, and other vehicles within a yard or distribution center. This includes tasks such as scheduling, tracking, and coordinating the arrival, departure, and storage of these vehicles.
East Coast Port Strikes: Gain Visibility and Control the Chaos
Dockworker strikes across North America’s east and gulf coasts are impacting major hubs including the Port of New York and New Jersey, the Port of Savannah, and the Port of Charleston. As the strike disrupts operations at these major ports, its ripple effects will be felt across the entire North American logistics network as vessels reroute, causing slowdowns in the movement of goods and exacerbating port congestion.
What Is the Expected Impact of the Strike?
With the strike directly impacting several of the busiest ports in the United States, the repercussions are expected to be significant. Cargo volumes will pile up, leading to delays in container movements, extended vessel anchor times and bottlenecks throughout the supply chain. As fewer containers move through the affected ports, vessel schedules will become increasingly unpredictable and lead to vessel bunching and increasing port congestion levels elsewhere in North American.
With East Coast ports tied up in labor strikes, West Coast ports such as Los Angeles, Long Beach, and Seattle will likely see an increase in volume as shippers seek alternative routes. Canadian ports like Vancouver may also experience a surge in vessel traffic. While these ports can absorb some of the shipments, they already deal with their own congestion issues and seasonal peak loads, meaning the additional cargo may be difficult to move.
The Timing Couldn’t Be Worse for Retailers
The timing of the strike is designed to make businesses hurt, and is particularly concerning for retailers as they gear up for the important Q4 holiday shopping season. This period, which spans Black Friday, Cyber Monday, and the December holiday rush, is the busiest time of the year for retail, and disruptions to the flow of goods can have a major impact on inventory levels and OTIF performance.
Retailers rely heavily on well-timed shipments during Q4 to stock shelves with in-demand products. A major strike during this period is likely to contribute to stock shortages, delivery delays, increased logistical costs and missed sales.
How Long Will the Strike Last?
Predicting the duration of the strike is difficult. For supply chain managers, this uncertainty adds a layer of complexity to already strained operations, as they try to plan for both immediate and (potential) long-term disruptions.
Navigating the Strike’s Impact on Your Supply Chain
Given the uncertainty surrounding the strike and its effects on supply chains, having real-time visibility into your logistics operations is more important than ever. Visibility tools like Beacon facilitate automated freight tracking and alerts, seamless document management and the sharing of live order and shipment updates with warehouses and customers so they're never in the dark.
With the right visibility platform, shippers can respond quickly to disruptions, identify and control risks, and keep their supply chains moving smoothly amidst a chaotic backdrop.