American Cotton Shippers Association (ACSA) members face the demanding task of efficiently executing exports and domestic shipments through unprecedented logistical challenges. Overall US production for the 2021–22 season is estimated at 18 million bales, and of those, 15.5 million bales are exports. Demand is strong, inventory is tight, and prices have increased rapidly.
Harvest, ginning, warehousing, and shipping are underway, but execution has been poor. Significant vessel service delays, bunching, and a shortage of drivers to perform the critical “first-mile” export container loading are adding delays and costs to shippers and warehouse operators, compromising competitiveness, with no clear solution in sight.
Timely executions to meet commitments and mitigate risks are only achieved by enhanced and aligned visibility between commercial partners. Every linked participant in the supply chain needs better-aligned visibility. Without transparent, automated technological advancement, we find ourselves leveraging more human resources to coordinate and resolve conflicting operational information in real time.
These disruptions have created a new mandate for enhanced communication to review and address changing circumstances in real time. Logic and mutual partnerships between supply chain participants are required to execute.
ACSA applauds Federal Maritime Commission (FMC) Chairman Daniel Maffei for his testimony to Congress calling for more data and information sharing. While disruptions are inevitable, immediate cultural changes to enhance visibility and transparency must occur to increase execution. But how do we move from concept to implemented action?
The cotton export industry is primed for growth, and the logistics industry must solve the current supply chain challenges in preparation for volumes expected to exceed historical highs.
Cotton traders value our partners and are objectively changing the way we procure cotton and execute delivery into domestic and global consumption markets. ACSA is hopeful that our strategic partners will also apply long-term perspective to commercial decisions during this difficult time.