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marine insurance - Pirates are alive

The importance of marine insurance … and yes, there are still pirates!

Seafarers have long navigated the world’s trade routes as a livelihood. The concept of marine insurance dates back to 533 AD and the clever rulers of the Roman and Greek Empires. The refinement of Maritime insurance spanned the course of medieval Europe in the 1600s – a compelling story in itself, until reaching its more modern version in 1906 with the advent of the Marine Insurance Act. But before venturing down the rabbit hole of why insurance is key to import businesses, let’s have some fun with our imaginations.

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cargo-containers-in-shipping-dock

US Container Freight Rates’ Drop Will Impact Supply Chain Balance of Power

Spot vs. contracted rates – What is this tug of war between spot and contract rates? A spot rate is a one-off charge for transporting shipments by air or sea freight.
According to Shipping and Freight Resource, freight spot rates began to dip in March 2022 and by June had dropped to their lowest levels since April 2021. Moreover, the figures are now lower than long-term rates, which Bloomberg says is the first time this has happened since April 2020. So, according to the SHIFEX index (by Shifl), shipping a 40-foot container in September 2022 from China to Long Beach and LA on the West Coast costs around $4,900 – a 72% drop year-on-year from a whopping $17,500.

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Friendshoring in Global Economy

Friendshoring & the global supply chain: What should we know?

Why friendshoring?
Firstly, what is friendshoring? Also called “allyshoring,” friendshoring is where companies move their business operations – be it back-office, manufacturing, or R&D, to “friendly” countries.
But, Is Friendshoring friendly?
An August 2022 report by CSIS researchers focuses on securing semiconductor supply chains and offers a positive agenda for global cooperation. According to the writers William Reinsch, Emily Benson, and Aidan Arasasingham, shifting supply chains from east Asia might increase security in the long term. However, the ill-conceived execution of friendshoring could lead to price hikes and a more assertive China.

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Global Supply Chain

China’s Military Action Around Taiwan Threatens Global Supply Chain

Since Covid, we have all learned the domino effect that any crisis along the global supply chain can have worldwide. The recent tensions between China and Taiwan can have such an effect. The air and seas around the self-ruled island of Taiwan are crucial for smooth economic trade. Still, tensions are rife as Chinese aircraft and vessels crossed the Taiwan Strait median early August.
Why is Taiwan important?
Analysts have said that Chinese military exercises around Taiwan could disrupt the already stretched global supply chain. Why? Because Taiwan sits in one of the world’s busiest shipping zones. Even a minor supply chain disruption could be costly to international trade already pummeled by the COVID pandemic and Russia’s invasion of Ukraine.

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supply chain disruptions

West Coast port dispute latest US supply chain threat

The West Coast port labor dispute is again threatening the US supply chain. Given that the West Coast is among the nation’s major retail container ports, the outcome of failed negotiations could be so damaging that President Biden has had to intervene. So what are the issues at hand, and what’s at stake?

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8 Supply Chain and Logistics Trends

8 Supply Chain and Logistics Trends in 2022

Staying on top of supply chain and logistics trends and news will be crucial for all logistics companies and retailers who want to remain in business and even be leaders in 2022.
Today more than ever, consumer behavior demands rapid yet reasonably priced fulfillment. In an incredibly competitive landscape, on-demand delivery – even same-day delivery, which was once unheard of, is becoming expected by consumers and, therefore, a key differentiator.

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