The Friday Report: February 28th, 2020Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry
Cargo Thieves Continue to Target Trucks in Transit
A recent report by international transport and logistics insurer TT club and supply chain intelligence firm BSI indicates that 87% of cargo thefts involved trucks in 2019. This is up by 3% over the previous year and is dramatically higher than the incidence of cargo theft in warehouses and trains.
The study reported that 60% of the cargo theft incidents occurred while the vehicles were in transit. Most frequent locations of the theft were rest areas or unsecured parking locations. An average of eight cargo theft incidents occur every day from unsecured truck parking worldwide.
Median losses from cargo theft incidents ranges from $11,000 in Asia to $100,000 in South America. In 2019, the top three commodities stolen from cargo trucks were alcohol and tobacco, electronics and food and beverage products.
Digital Security Risks Top List of Potential Supply Chain Disruptions
With all the hullaballoo about supply chain disruptions from coronavirus outbreaks, industry experts are concerned that cyber and digital capability concerns may not be receiving as much attention recently as needed. To have a resilient supply chain means constant vigilance on all these fronts.
Some of the most common disruptions to supply chains include supplier insolvency, quality problems, shipping and transit delays. Today, technologies exist to help identify, monitor and manage supply chain risks. Companies need to adopt a broader perspective to include not only physical disruptions but also cyber and digital capability disruptions. As with most matters, visibility is key.
Coronavirus Stops Freight in Its Tracks
According to the latest figures from Alphaliner, there have been a record number of blank sailings, hitting an industry record of 11.7%. 56 ships cancelled sailings during the first three months of 2020 to the Ports of Los Angeles and Long Beach and the Port of Oakland anticipates 23 blank sailings for February through March. Major year-over-year (YoY) declines are forecast.
Although production has already shifted to other Asian nations, for every container leaving Asia, two and a half are being lost from China. While some factories have reopened in China, many are experiencing labor shortages or are only returning on a gradual basis. The impact of the coronavirus outbreak is forecast to cause ripples through many supply chains, leading to no earnings growth for some U.S. companies.
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