- Shippers in e-commerce advised to plan for potential supply chain disruption and rising prices as the peak season looms.
- Supply chain undergoes a massive change due to Covid 19 lockdowns.
- Most notably via a massive swing to online shopping that has led to an explosion of volumes at the organisation.
- As a result of this surge in volumes both upstream and downsteam retail supply chains were facing severe capacity issues.
- The demand is more than supply in most markets as capacity reduced due to health measures to keep the employees safe.
Disruption and price rise alert to shippers as the peak season looms, writes Gavin Van Marle for the Loadstar.
Impact of upcoming peak season
On the upcoming peak season, Canada Post chief operating officer Charles Brewer warned that supply chains had undergone a transformation due to Covid-19.
The subsequent lockdowns which had had a huge impact on retail supply chains – most notably via a massive swing to online shopping that has led to an explosion of volumes at the organisation.
Nine years ahead in terms of volume
“Four weeks ago we delivered the same volumes that we forecast we would be doing in 2029 – we are now nine years ahead of where we thought we would be in terms of volumes,” he said, adding that this had had an immediate effect on the company’s investment plans.
“Everything we expected to invest over the next five or six years we now have to do in five or six weeks – we are already operating at a peak, so what is now coming towards us is a peak on a peak season.”
Means to cover the increased cost
It’s going to be a tough peak and there is plenty of evidence over the past six weeks of 3PLs and postal operators implementing surcharges to cover the increased costs.
Shippers and vaccine development
Jamie Lansdell, Americas regional manager for the automotive & mobility vertical at Expeditors, also suggested shippers should keep an eye on attempts across the world to develop a vaccine, because a successful development of vaccine would upend supply chains.
If there is a vaccine developed it is going to make an iPhone launch pale into insignificance, and it will need global collaboration between air freight, sea freight and cold chains.
“Regardless of where you are in the transport and logistics industry, it will have an impact; and it will be a prolonged effect that will last more than a month at least,” he said.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Market Watch
