📊 Two canals, two big problems

Irbis Index February 2024

To view the full Index for February 2024 click here.

News

Two canals, two big problems — one global shipping mess The global shipping industry is currently navigating challenges at two vital canals, the Panama Canal and the Suez Canal.

• In the Panama Canal, over 50 ships are experiencing delays as they queue up due to a prolonged drought affecting water levels.

• This situation has led to extended waiting times and significantly increased tolls, up to eight times higher than usual, impacting the economics of shipping through this key route.

• On the other hand, in the Suez Canal, vessels are facing delays as they either wait for naval escorts or opt for longer voyages around South Africa.

• These delays are primarily due to concerns over potential attacks from a Yemen-based rebel group, prompting shipping companies to reroute their vessels and leading to longer delivery times and disruptions in global maritime trade.

• The challenges at these canals highlight the intricate interplay between natural factors, security concerns, and logistical complexities that can significantly impact the efficiency and reliability of global shipping networks. (link)

Bahrain’s Arcapita launches $500M logistics fund in Saudi Arabia Bahrain-based investment management firm Arcapita Capital, a subsidiary of Arcapita Group, has successfully closed the $500 million KSA Logistics Fund III.

• This fund, with participation from a sovereign wealth fund from the GCC region and other institutional investors, aims to enhance Saudi Arabia's position as a global logistics hub.

• Arcapita has already allocated a significant portion of the fund to industrial real estate assets in manufacturing and warehousing sectors across strategic locations like Riyadh, Jeddah, and the Eastern Province.

• The firm plans to continue developing properties with long-term off-take arrangements with tenants, aligning with Saudi Arabia's industrial growth initiatives. (link)

DB Schenker looks to build an integrator footprint in India DB Schenker is intensifying efforts to expand its presence in India, aiming to capitalize on the country's growing economy and its emerging status as a sourcing alternative to China.

• Amid potential ownership changes, the company is focusing on a multifaceted growth strategy in India that includes expanding contract logistics in tier 2 and tier 3 cities.

• This strategy encompasses advanced tracking solutions, automation, and improving last-mile delivery capabilities, as well as digital solutions to maintain a competitive edge in the market.

• DB Schenker is working on building a logistics integrator footprint in India, focusing on end-to-end, point-to-point offerings to foster a more resilient and sustainable trade flow.

• This includes forming strategic partnerships, such as with Container Corp of India (Concor), to explore opportunities in inland logistics and shift the dominant mode of transport from road to rail, aiming for a low-carbon future.

• DB Schenker India has a network of 28 offices and around 50 warehouses, covering over half a million square meters of space. (link)

The future of supply chain technology: A shift toward intelligent systems The future of supply chain technology is rapidly evolving towards the adoption of intelligent systems, as highlighted in a recent Forbes article.

• A KPMG report on 2024 supply chain trends emphasizes the transformative potential of generative AI in revolutionizing supply chain management, logistics, and procurement.

• Businesses are encouraged to reassess their current supply chain analytics capabilities in preparation for integrating AI technologies.

• This shift is part of a broader digital strategy that has become a core focus for supply chain organizations, aiming to stay ahead of the competition through advanced analytics and artificial intelligence applications.

• Artificial intelligence is already reshaping the supply chain landscape by enhancing performance across industries, offering predictive analysis, and improving transparency.

• This technological advancement promises a future where supply chains are more efficient, resilient, and transparent, significantly impacting how companies manage their logistics and procurement processes. (link)

Other headlines 

The Spring Budget received mixed reactions from the transport and logistics sector, with some finding it underwhelming despite a freeze on fuel duty and other benefits.

EU waters down supply chain law to placate Germany and Italy.

U.S. Department of Energy's SuperTruck program has driven the development of technologies that enhance the efficiency of everyday trucks.

Ceva Logistics has withdrawn from the competition to acquire Wincanton, clearing the way for GXO's £960m bid.

Reelables has introduced a new Bluetooth 4"x 8" shipping label, combining a standard shipping label with a tracking device for real-time cargo visibility.

BlueGrace Logistics has acquired the optimization platform Evos Smart Tools to enhance logistics efficiency and resource utilization for its customers.