THE SUPPLY CHAIN TIMELINE
The Supply Chain Timeline offers a chronological overview of key milestones and relevant news for supply chain professionals since January 2020, providing context for ISCN.Academy’s Augmented Interviews and Masterclass.”
Survey results suggest decarbonisation topics lost traction in light of the dynamic and volatile economic and regulatory environment that characterised 2023. The report covers the road freight sector’s decarbonisation efforts and priorities as an information source for scenario planning, decarbonisation strategies, target setting and action planning. is based on the findings from a global survey with over 700 respondents including 181 shippers and 527 carriers in Europe and North America. Read more
This masterclass unpacks the challenges and opportunities of key warehousing trends in 2024. It delves into crucial topics such as cost management, the evolving role of human labor, and the advent of innovative and hybrid warehousing concepts. New automation concepts, technologies and software designed to support the evolving automation landscape are considered. This masterclass is facilitated by two leading warehousing experts: Jan de Kimpe, owner of LogisolPro and Simon Popelier, innovation manager of Logflow.
As witnessed in 2023, inflation and high interest rates strongly contributed to financial distress. Cyberattacks accelerated. Weather extremes proved their potential for devastation. As ESG-related risks grew, companies increasingly focused on ensuring ethical and sustainable supply chains. The ongoing war in Ukraine, as well as a backlog of container ships waiting to enter the Panama Canal, demonstrated that exceptional circumstances had the power to severely disrupt supply chain operations. Read more
The container vessel Dali caused the collapse of Baltimore’s Francis Scott Key Bridge, resulting in six fatalities and blocking access to the port. Beyond containers, the Port of Baltimore plays a crucial role in handling various commodities, including cars, forest products, farm equipment, and sugar. As a significant automotive hub for the East Coast, disruptions to these supply chains are likely to be pronounced. Moreover, this incident adds to the mounting pressure on global supply chains, exacerbated by the Panama Canal drought and the Red Sea crisis. Anticipated consequences include rising ocean freight rates. Read more
Alex Van Breedam navigates the pivotal lessons learned from the turbulent year of 2023. From the far-reaching impacts on the global economy to the intricate shifts within supply chains, the consequential events that shaped the landscape are explored. With a focused lens on the evolving landscape of freight transport markets, especially in ocean freight and logistics, this exploration uncovers invaluable insights for the road ahead.
Effective from 1st December 2023, there will be a CO2 surcharge of €200 per ton of CO2 emitted by commercial vehicles. This will result in an additional charge of approx. 0.16 €/km. Additionally, MAUT road tolls will increase significantly from 0.19 €/km to 0.35 €/km, depending on the emission class of the truck. Read more.
With the Galaxy Leader being the initial target - a cargo ship with Israeli connections - Yemen's Iran-backed Houthi rebels have launched attacks on ships in the Red Sea, claiming it as retaliation against Israel for its military actions in Gaza. In response to the escalating situation, major shipping companies such as MSC, Maersk, and Hapag-Lloyd, along with the oil company BP, have opted to temporarily reroute their vessels via the South African route. This alternative route, avoiding the Suez Canal, is 40% longer and not only requires significantly more fuel but also extends the average sailing time by around 10 days. Consequently, container tariffs between China and Europe have witnessed a substantial increase. Read more.
Due to a severe drought linked to the El Niño phenomenon and a delayed rainy season, the water level in Gatún Lake, which serves as the primary source of water for the canal's locks, has declined by approximately 17% since October. This has resulted in the Panama Canal Authority implementing temporary capacity reductions, limiting the number of vessels transiting the canal to nearly half its full capacity. Vessels seeking alternative routes have resorted to using the Suez Canal, which extends their journey by approximately one week on the route between China and the US. The Panama Canal Authority is actively pursuing a range of initiatives to address the drought and minimize its impact, including enhancing water efficiency within the canal, implementing water conservation measures, and constructing a new reservoir. Read more.
With the ease of global container demand post-pandemic and a significant orderbook of new vessels entering sail in the current and coming years, the overcapacity of container vessels is expected to reach its peak in 2024. This puts high pressure on tariffs and the profitability of shipping companies. However, with consumers starting to reduce their higher goods spending, against a backdrop of a global economy reeling from an inflation shock and rapid rate increases, the demand slowdown is intense. In an optimistic scenario, the supply/demand balance will be restored by 2028 at the earliest. Read more.
Eddy Annys is Managing Director at Randstad Belgium.
UPCOMING
The Israel-Hamas conflict is likely to have repercussions on global logistics and supply chains. Potential disruptions include the operation of trade corridors influenced by geopolitical tensions, such as the India Middle East Europe Economic Corridor (IMEEC) and the International North-South Transport Corridor (INSTC). There may be disturbances in maritime routes and air cargo capacity between Europe and the Far East. The conflict could also introduce instability to oil markets, leading to price increases and inflation. Given Israel's prominence in microchip expertise and manufacturing, the semiconductor supply chain might also face disruptions. Also healthcare supply chains might be affected. Read more.
The annual 3PL Study provides insights into the relationships between shippers and 3PLs, highlighting their priorities and challenges. Strong partnerships are driving results, as they can improve service and lower the overall logistics costs. Emerging technology adoption is critical to future
growth and overall, as data-driven approaches and emerging technologies are shaping the role of supply chains today. Read more.
This report highlights the benefits of near sourcing to electronics and technology supply chains that have been faced with many disruptions since the pandemic. The report considers a variety of locations to move their sourcing closer, from low-cost manufacturing destinations like Vietnam and India to regions that are closer to European key markets like Turkey, Germany and Poland. However, it is important to keep in mind that there are several aspects to consider during reshoring efforts to find a sweet spot that mixes labour, infrastructure and stability to ensure the long-term viability of a site, both from productivity and sustainability angles. Read more.
For the first time in six years, the spot rates for road freight in Europe drop below contract rates. This implies that the demand for spot transport is lowering. The transport rates began to decline at the start of 2023. Read more.
Daan Schalck is CEO of North Sea Port. In this discussion, we delve into the strategy of North Sea Port, a prominent Belgian-Dutch cross-border port. We discover how the port has developed an industrial ecosystem across some key sectors, with a specific focus on circularity and green energy. Rather than opting for container-centric operations, the port strategically positions itself as a consolidation hub and an added-value generator for nearby container ports. To ensure ongoing value for its industrial ecosystem, the port prioritizes a flexible concession policy, collaborations with other ports, and a steadfast commitment to circularity and green energy.
As compared to Q4 2021, the EU GDP has grown with 1,5% in Q4 2022. During the same period, the Greenhouse Gas Emissions decreased by 4%. The only three sectors in which emissions increased were transportation and storage (+7.0 %), services (except transport and storage) (+1.7 %) and mining and quarrying (+1.0 %). Read more.
The COVID-19 pandemic profoundly shook global supply chains, triggering disruptions in production, distribution, and inflicting severe economic repercussions. This analysis delves into the core drivers behind these disruptions, identifying the hardest-hit industries. Drawing on the lessons learned from this crisis, strategic insights to proactively mitigate the impact of future disruptions are provided to foster a more resilient supply chain.
Kurt Van Donink is General Manager of the European Logistics Center and Vice President Logistics Europe at Nike. In this discussion, you will explore how Nike evolved as a wholesaler to a retailer and further to an e-tailer driven by a strong Digital First strategy. The implementation of this strategy involved the seamless integration of digital and retail sales through the Nike Logistics System, consolidating them onto a unified platform. You will discover how an agile and responsive supply chain is achieved through the application of a single inventory model across a multi-node network. Furthermore, insights will be shared on Nike's multifaceted approach to enhancing the sustainability of its supply chain.
The shortage of available capacity in European road transport as a result of the economic recovery after the period of lockdowns is now switching to an excess capacity as demand for transport is decreasing. Most probably, this will result in a further decrease of the road transport rates in the coming period. Some transport companies might run into financial problems. Will this lead to consolidation and acquisitions? Read more.
The Pitney Bowes Shipping Index reveals that US parcel volume declined by 2% in 2022. Amazon Logistics kept its volume of 2021 and slightly increased its market share. In terms of revenue, UPS has a market share of 37%, while Amazon Logistics only represents 12% of the market. Read more.
Benny Smets is CEO of transportation company Ninatrans. In this conversation, Benny Smets shares his insights on how a mid-sized transport specialist can realize its growth ambitions and how it made itself essential for its major customer segment, the logistics service providers. You will discover how a transportation company evolved to a transport specialist with a focus on quality in a very competitive industry. Limiting empty driving and being extremely efficient are some of the key drivers of success of a transportation company today. Finally, we delve into how the energy transition poses a major challenge for the transportation company moving forward.
Wim Smout is Vice President Supply Chain & Procurement at Telenet. In this interview, we will explore the supply chain strategy of a telecom operator. Despite not being a core focus, you will discover how the supply chain acts as a catalyst for change, value creation, and ecosystem development, with a strong emphasis on sustainability. We’ll explore Telenet’s unique supply chain configurations for their three primary product categories. Finally, we will also discuss Telenet's high expectations for logistics service providers and the necessity of a future supply chain redesign as telecom operators are transitioning into content providers.
The European Road Freight Rate Development Benchmark shows a decrease of the spot rates for Q4 2022, mainly because of the slowing down of the demand for road transport. This is the first drop since Q1 2020. The contract rates are still growing, but at a slower pace. The limited growth is mainly caused by the high fuel prices and the persistent driver shortage in Europe. Read more.
The Corporate Sustainability Reporting Directive (CSRD) enters into force. This new directive modernises and strengthens the rules concerning the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability. This new directive modernises and strengthens the rules concerning the social and environmental information that companies have to report. Read more.
Germany’s new Supply Chain Due Diligence Act, requires large companies to make sure social and environmental standards are observed in their supply chain. Since 2023, the Act initially applies to enterprises with at least 3,000 and, from 2024, additionally to those with at least 1,000 employees in Germany. Companies have to monitor their own operations and their direct suppliers across the globe, taking appropriate measures in case of violations. Non-compliance can result in penalties of up to 2% of their annual turnover and exclusion from public contracts. Read more.
Alex Van Breedam gives an overview of the relevant and impactful supply chain shocks and disruptions since the start of Covid with a focus on the year 2022. These events and ongoing threats will shape supply chains in the coming years.
Kristian Vanderwaeren is the Director General of the Administration Customs and Excise at the Belgian Ministry of Finance. In this engaging conversation, we’ll explore how the enforcement and repression tasks of the Customs and Excise administration have rapidly gained significance beyond their traditional role in trade facilitation, particularly in response to shifting geopolitical dynamics. Furthermore, the surging number of declarations in e-commerce is presenting substantial challenges for customs authorities. Additionally, you’ll discover how customs has increased its agility to react to disruptions and crises. Finally, we’ll provide insights into how the administration will use ICT in the future to achieve comprehensive goods scanning and how 'green customs' will play a role in taxing goods based on their carbon footprint.
China’s zero-covid policy is a strategy of eliminating any local transmission of the coronavirus through strict measures such as lockdowns, mass testing, contact tracing and quarantine. After mass street protests, the China announced a relaxation of its zero-covid policy. Read more
ChatGPT, as an advanced AI language model, has the potential to revolutionize many industries, including supply chain management. ChatGPT has the potential to revolutionize supply chain management by improving communication, enhancing data analysis, and automating various tasks. Its advanced language capabilities can help to streamline processes and improve efficiency, ultimately leading to better business outcomes. Read more
The past year shippers and third-party logistics providers (3PLs) have experienced disruption on a global scale, as the 2023 27th Annual Third-Party Logistics Study shows both shippers and 3PLs going back-to-basics to reset and rebalance supply chains. Both groups have experienced strained shipper-3PL relationships as they address ongoing disruption, strategic misalignments and labor challenges. Read more
The Gartner Hype Cycle Report on Supply Chain Strategy suggests that expectations around tech have reached a peak but that cost is slowing down adoption. New additions to Gartner’s supply chain ‘hype cycle’ include 'machine customers', 'ecosystem partnerships' and 'hybrid work'. Read more
During the period of drought, the volume of traffic on the Rhine decreased simultaneously with a decline in imports of fossil fuels from Russia, which was due to the economic sanctions that were enforced as a result of the Russian invasion of Ukraine. In August 2022, when the water levels in the Rhine were at their lowest, the Nord Stream 1 pipeline was restricted to operating at only 20% of its capacity. This limitation on the pipeline's capacity, coupled with the already existing fuel shortage, intensified the energy crisis in Germany. It's to be expected that drought and climate change in general will have an important impact on transportation and supply chains. Read more
With all the ocean capacity shortages and port congestion one of the world's biggest retailers, Lidl, decided to start Tailwind Shipping Lines as a complement to the established large container lines. The focus of Tailwind is on smaller container ships sailing mainly between China/Bangladesh and Europe and calling less congested ports. More than 20000 new container boxes have been put in operation. This could be considered as another example of an ongoing logistics insourcing trend, initiated by Amazon.
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Marc Beerlandt is CEO of Mediterranean Shipping Company Belgium & Luxembourg. This interview offers valuable insights into the strategic approach of the leading ocean shipping company. You will discover how the container shortage and the surge in freight rates has influenced MSC's strategy and its expansion of services. We also examined potential solutions to mitigate the challenges of port and terminal congestion, while trying to better understand the complex dynamics of competition and collaboration among the major shipping lines. Furthermore, you will learn which proactive measures are being taken by shipping companies to prepare for a more sustainable future.
The DHL Logistics Trend Radar is released every two years. It reflects DHL's view on key social, business and technology trends within the logistics industry. Some new and returning trends reflect how supply chains are adapting to the new post-covid era of disruptions and bottlenecks. Read more.
The ports of Antwerp and Zeebrugge will from now on continue their growth trajectory under one name: Port of Antwerp-Bruges. At the extraordinary general meeting of 22 April 2022, the two cities signed the shareholders' agreement of the unified port company. The unified port wants to be leader in the transition to a sustainable future. Read more
Bert Lemmens Director EMEA Supply Chain and Leader SCM Global Office of Terumo. In this conversation, we delve into the remarkable journey of a traditional Japanese medical technology company navigating the post-covid era and reshaping its supply chain with enhanced agility and flexibility. Throughout this interview, you'll gain valuable insights on the optimal organization of supply chain departments at both, global and local level, enabling them to effectively address disruptions, support growth, and maintain cost control. You’ll discover why a central inventory continuous to be the most fitting choice for this industry. Finally, we'll also explore the future of medical devices as they evolve into "deviceuticals”.
Bert Vandecaveye is founder and CEO of Tailormade Logistics. Bert shared his insights on how a mid-sized logistics service provider is able to realize its growth ambitions with a strong positioning in selected niches. You will gain understanding how this approach leads to partnership relations rather than relying solely on tenders. Even for mid-sized logistics companies, Bert believes that size and scale are crucial factors to achieve growth. Looking to the future, we delved into the potential effects of e-tailers on the logistics industry and explored what sustainability truly entails for logistics service providers.
The Russia-Ukraine war has had significant impacts on global supply chains, particularly in the energy, steel and agricultural industries. Shipping routes were impacted, resulting in delays and increased costs for shipping companies. Moreover, companies may be less likely to invest in the region or to source materials from there.
MASTERCLASS ANALYSIS upcoming.
New rules on vehicle return and cabotage become applicable. The return rule requires every truck to return to its home depot at least once every eight weeks. Cabotage refers to the transport of goods between two places in the same country by a company from another country. Within the EU, trucks are allowed to perform three cabotage transports within seven days in the country they have emptied their truck with the delivery of an international load. The new cabotage rule imposes a cooling off of four days after the truck left the country of the last cabotage and that before the truck can perform further cabotage transports. Read more
Jo Verbeeck is Chief Supply Chain Officer and member of the Executive Committee at Sonepar. In this conversation, we will delve into the transformation of a leading global electric material distributor as they embrace an omni-channel approach. The emergence of pure e-tailers has increased the importance of speedy delivery and sustainability, placing additional demands on the company. You’ll learn how the company maintains its competitive edge by offering value-added services to professionals and by keeping key supply chain activities in-house. Moreover, you will acquire valuable insights into the company's strategies for adapting to future challenges.
William Demoor is Director Customer relations at the Port of Antwerp. This conversation offers valuable insights into the strategic approach of a leading port authority. We discussed how the role of the port has evolved to community builder in order to more effectively tackle the major challenges in collaboration with port users. We explored how the port is actively integrating itself into global supply chains through robust hinterland connections. You will understand how port competition is extending beyond the Hamburg-LeHavre range of ports. Finally, you will discover how the port will further take the leading role in driving energy, digitalization, and mobility transitions together with the port community.
This reportage of CNBC showcases how Amazon's ability to bypass post-pandemic congestions and shortages by insourcing capacity, utilizing their own containers, and employing chartered vessels to navigate towards smaller, less congested ports. At this moment, more than 70% of Amazon's volume is shipped with owned capacity. Read more
Global Gateway is the new European Strategy to boost smart, clean and secure links in digital, energy and transport and strengthen health, education and research systems across the world. It stands for sustainable and trusted connections that work for people and the planet, to tackle the most pressing global challenges, from climate change and protecting the environment, to improving health security and boosting competitiveness and global supply chains. Global Gateway aims to mobilise up to €300 billion in investments between 2021 and 2027 to underpin a lasting global recovery, taking into account our partners needs and EU's own interests. The initiative is also seen as an alternative or rivalry to the Chinese Belt and Road Initiative. Read more
Silvio Mestdagh is CEO of DPD Belgium. In this conversation, we explored the inner workings of DPD's robust international last mile parcel delivery network. You will gain valuable insights on how DPD has established a network of dedicated subcontracted drivers who adhere to the principle of serving the same street every day and how these subcontractors fit into the personnel structure of the company. Additionally, the potential impact of the X2X model, e-tailers, and dark stores on the future of city logistics is discussed.
Shippers and third-party logistics providers have worked together to navigate fluctuating demand, capacity problems and uncertainties in the market. Ultimately, some of the data from this year’s study may be interpreted to reflect a modest decline in some performance ratings provided by shippers. Shippers continue to have high expectations of what they need from logistics and supply chain service providers. 3PLs are continuing to increase their technological and digital capabilities, improving service, optimizing networks and driving efficiency. Read more
In September 2021, the Freightos Baltic Index, a global ocean 40' container freight index is skyrocketing and reaches its highest value in many years. The combination of supply chain disruptions, the congestion at ports, the rising fuel prices and the surcharges imposed by shipping companies created a perfect storm.
Sophie Houtmeyers is Vice President Distribution Operations of Skechers. In this conversation, you will explore how Skechers adapted its supply chain to meet the challenges of the rapidly changing omni-channel retail landscape. We will discuss the complexities of integrating e-commerce and retail orders, and how automation played an instrumental role in streamlining the process. Additionally, we will dive into how Skechers made its supply chain resilient to the unpredictable swings in consumer behavior and high volume demands, while preparing for the future of retail.
The Ever Given’s grounding in the Suez Canal in March 2021 caused significant disruption to global supply chains, impacting industries and businesses worldwide. The incident led to delays, congestion, increased shipping costs, and highlighted the fragility of global supply chains. It demonstrated the need for contingency planning to manage unexpected disruptions and the potential for a single event to have far-reaching impacts on supply chains and businesses.
Gerry Bosmans is Director Contract Logistics Benelux at Kuehne and Nagel. From this conversation you will learn how Kuehne and Nagel's asset-light strategy is transforming them into a leading knowledge company, leveraging big data and placing a greater emphasis on engineering expertise in addition to the traditional warehouse operations. You will gain insights into Kuehne and Nagel's gradual shift away from the tendering process towards long-term contracts with high added value, while also uncovering how the evolving customer behavior is driving the development of innovative fulfillment services based on automation and digitalization.
Dieter De Waegeneer is Executive Vice President Operations and member of the Executive Committee of Delhaize Belgium and Luxemburg. From this conversation, you will gain an understanding of how Delhaize is integrating its supply chain to simultaneously replenish its own integrated shops and the independently owned franchise shops. You will also discover how Delhaize is leveraging an omni-channel approach to own the complete customer journey, and how e-commerce in combination with healthy and fresh food solutions is a winning combination for the company. Finally, you will get insights in how a traditional retailer is looking at the future of retail.
2020 was a tumultuous year, and global supply chains are facing more external challenges than ever before. The study continues to show that shippers and third party providers are experiencing positive benefits from their relationships that have been critical during unprecedented supply chain disruptions due to COVID-19, the U.S.-China trade war and changes in consumer demand. Read more
New rules on driving and rest times become applicable that include requirements for drivers to take regular rest periods and limits on the amount of time drivers can spend behind the wheel. The major changes include a regular weekly rest period for drivers of at least 45 hours, which cannot be taken in the vehicle. The maximum weekly driving time is 56 hours. The Mobility Pack introduces new requirements for tachographs, which must be tamper-proof and able to transmit data remotely. Read more
The semiconductor crisis has emerged as a critical global challenge, affecting industries and economies worldwide. The surge in demand for electronic devices, catalyzed by the COVID-19 pandemic, has converged with vulnerabilities in supply chains and geopolitical tensions, resulting in widespread shortages and price volatility. The semiconductor shortage has had a significant impact on industries and economies worldwide, disrupting the production of cars, smartphones, medical devices, and other products that rely on chips. In response to the crisis, companies have adopted a variety of strategies, such as diversifying suppliers, reshoring, and fostering collaboration. While the worst of the crisis appeared to be over early 2023, the semiconductor industry continues to face some challenges.
The COVID-19 pandemic profoundly shook global supply chains, triggering disruptions in production, distribution, and inflicting severe economic repercussions. This analysis delves into the core drivers behind these disruptions, identifying the hardest-hit industries. Drawing on the lessons learned from this crisis, strategic insights to proactively mitigate the impact of future disruptions are provided to foster a more resilient supply chain.
The United Kingdom officially leaves the European Union and enters a transition period to negotiate with EU until December 31st, 2020. Brexit has a significant impact on global supply chains, as companies operating in the UK and EU had to adjust to the new realities of a post-Brexit world. This included dealing with new customs procedures, tariffs and regulations, as well as the potential for additional administrative and logistical challenges. Read more
The year 'ZERO' of this timeline corresponds with the outbreak of the COVID-19 pandemic, early 2020. Back then, supply chain management really entered the era of disruption or the VUCA world with much volatility, uncertainty, complexity and ambiguity, where constant, unpredictable change has become the new normal in certain industries and areas of the business world. It's a new 'era of disruption', in which technology and society are evolving faster than businesses can naturally adapt.
