COVID-19-related trade disruption has resulted in today’s “Great Congestion,” in which a massive disconnect between e-commerce purchases and the physical movement of goods through supply chains has contributed to a transport system that has been overloaded in key markets.
There are virtually no barriers to e-commerce for consumer purchases today, as anyone with a smartphone or computer can quickly find and purchase nearly any product 24/7.
Order fulfillment is another story. At the purchase stage, order fulfillment is usually portrayed as an expected delivery time with little if any disclosure or consideration of product origin or routing.
Unfortunately, the lack of clarity on sourcing locations and lack of consequences for not meeting stated delivery dates has resulted in significant service failures from the increased cargo levels overloading international supply chains. Many consumers have had firsthand experience with purchases not being delivered or being significantly delayed due to this phenomenon during the last year.
Although the current 20 percent cargo surge in certain markets is expected to be worked out over time, it’s humbling to realize that a return to “normal” 4 percent annual growth in trade would mean today’s cargo levels will reoccur in 2025.
To effectively accommodate the likely cargo volumes in 2025 and beyond, new information technologies, data sharing and flows, and business processes will be required to complement physical infrastructure upgrades and expansion.
These digital tools are not autonomous. Capable users and process managers will be required to use these new e-tools and develop refined business processes. Training and education at all job levels will be essential to effectively maximize their capabilities and effectiveness within supply chains.
The Containerization & Intermodal Institute (CII) will continue to support education within the international trade industry through its facilitation of scholarships with industry sponsors and schools, as well as through the interaction of students with industry experts via CII forums.