E2open Parent Holdings, a connected supply chain SaaS platform, has released the latest edition of its Ocean Shipping Index, a quarterly benchmark report offering insights into global ocean shipments. The report reveals a notable increase in transit times across major shipping lanes in the fourth quarter of 2023 and continuing into the first month of 2024, says an article published on business wire website.
Summary
- Global challenges, such as a drought in the Panama Canal and the threat of attacks in the Red Sea, have led to disruptions in shipping. Shippers and ocean carriers are considering alternate routes, extending transit times.
- The E2open Ocean Shipping Index is a data-driven report based on ocean shipping activity within E2open’s business network, which comprises over 480,000 connected enterprises.
- The disruptions result in longer transit times and increased costs, and also have environmental implications due to extended sailings.
- The global average shipment duration rose by two days, reaching a total of 60 days in the last quarter. All major shipping lanes witnessed duration increases.
Factors Contributing To Delays
Despite recent stability in shipping, various global challenges, such as a drought in the Panama Canal and the threat of attacks in the Red Sea, have led to disruptions. Shippers and ocean carriers are now considering alternate routes, significantly extending transit times.
Ocean Shipping Index Details
The E2open Ocean Shipping Index is a data-driven report based on ocean shipping activity within E2open’s business network. This network comprises over 480,000 connected enterprises, managing 15 billion transactions and tracking more than 70 million containers annually.
Impact On Global Logistics
Pawan Joshi, Executive Vice President of Products and Strategy for E2open, highlights the challenges faced by crucial waterways and emphasizes their quick and far-reaching impact on global logistics. The disruptions not only result in longer transit times and increased costs but also have environmental implications due to extended sailings.
Key Findings From Q4 2023
1. Global Average Shipment Duration Increase: The global average shipment duration rose by two days, reaching a total of 60 days in the last quarter.
2. Duration Increases in Major Shipping Lanes: All major shipping lanes witnessed duration increases, reflecting the challenges faced by these routes.
3. Asia to North America and Asia to Europe Routes: Shipments from Asia to North America and Asia to Europe averaged 60 and 64 days, respectively, showing an increase of three days in each route compared to the prior quarter.
4. North America to Europe Route: Shipment duration from North America to Europe increased by four days, surpassing forecasts.
5. Asia to South America Route: This route experienced a two-day increase in shipment duration from the previous quarter and a four-day increase from the same quarter in 2022.
Conclusion And Recommendations
E2open emphasizes the unfolding impact of these disruptions and advises shippers and ocean carriers to closely monitor transit times. Proactive measures are encouraged to mitigate the challenges, including updating demand, supply, and logistics planning parameters. Continued monitoring will be essential for adapting to the evolving global shipping landscape.
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Source: business wire
