Going beyond visibility

Why ocean shipment visibility is more than meets the eye.

WHAT’S INS IDE

– The state of ocean freight:
stats and trends to keep an eye on
– What is supply chain visibility
and why is it important?
– How digitization and automation
of key processes and systems
can help build stronger and more
transparent supply chains

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Introduction
The past few years have seen global supply
chains grow in length and complexity
as more and more businesses expand
their footprints in search of new markets,
revenue generators and suppliers.
These modern supply chains have been
designed to achieve increasingly ambitious
targets with shorter lead times, smaller
margins and faster delivery times, leaving
them at times vulnerable and unable to
effectively respond to disruptive events.
Unfortunately, global supply chains
continue to experience unprecedented
disruption. While not even the latest in
a long line of serious macro world events,
the COVID-19 pandemic undoubtedly set
off extraordinary demand for consumer
goods, which overwhelmed existing
systems and contributed to significant
congestion and capacity constraints,
some of which remain today.
Despite the frequency and severity of
some of these disruptions, ocean shipping
continues to play a vital role in global supply
chains. Today more than 80% of global
merchandise trade is transported by sea,
and at any given time, around 24 million
twenty-foot equivalent containers (TEUs)
are actively circulating across our oceans3.
What’s more, the volume of container
trade has more than doubled in the last
30 years, from 50 to over 182 million TEUs4.
This, coupled with a 37% increase in global
merchant fleet capacity, is not just good
news for carriers. It also creates significant
opportunities for smart freight forwarders
to take advantage of.

Although the container shipping market is

showing some positive signs of recovery,
there is still a long journey ahead.
For example, 9.3% of global container
ship capacity still remains unavailable
due to schedule delays1, and global
container shipping rates continue to
exceed their pre-pandemic levels2.

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Sources: 1 Accenture 2 JOC 3 Maersk 4 McKinsey 5 Statista
Introduction
Big-event disruptions are
destabilizing, but in chaos there
are opportunities
To keep pace with capacity demands
and navigate the considerable disruptions
that have affected the industry over the
last two years, logistics providers must
act fast to improve the productivity and
efficiency of their operations.
We know that continued disruption is
inevitable. And while it’s impossible to
eliminate these risks, there are ample
opportunities to gain some control and,
in some cases, even capitalize on them.
Key to this are more resilient and
transparent supply chains that can
anticipate disruption, react appropriately
and continue to operate efficiently.
And many believe that increasing
digital capabilities and practices is
the path to achieving this.
Digital transformations have been ongoing
for some time in the logistics industry, but
The flexibility required to
the constant and unpredictable pressures
that have been placed on the industry more deliver on customer demands
recently, have accelerated the need for and respond quickly to changes
faster and more lasting implementations.
is only possible when operations
Logistics providers simply do not have time are powered by a strong and
to languish in the technology doldrums
when it comes to improving visibility, centralized backbone, capable
whether it’s at an enterprise-wide level of extracting meaningful
down or perhaps an individual shipment.
insights from data.
The flexibility required to deliver on
customer demands and respond
quickly to changes is only possible when
operations are powered by a strong
and centralized backbone, capable of
extracting meaningful insights from data.
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The state of ocean freight:
stats and trends to keep an eye on
Although trade volumes are expected to slow as we head into 2023, ports continue to operate at record levels, placing increased
pressure on all maritime stakeholders to maintain supply-chain efficiency while scaling to meet demand.

Port volume by Million TEU (2021) 1

47.00 37.47 31.08 28.76 24.18

Shanghai Singapore Ningbo-Zhoushan, Shenzen, Guangzhou,

China China China China

23.70 22.69 20.26 20.06 17.79

Qingdao, Busan, Tianjin, Los Angeles / Hong Kong,

China Korea China Long Beach, US China

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Sources: 1 Statista
The state of ocean freight: Europe
Economic losses due to supply
stats and trends to chain disruptions in the Eurozone
keep an eye on are estimated at €112.7 billion,
or 0.9% of GDP 2.
China
The Port of Shanghai
moves more containers
than the top five ports
in the US combined 4.

Singapore
North America Marine fuel prices in
Singapore, the world’s
Accounting for 40 percent of US
largest refueling port,
containerized imports, the ports of
have jumped 66%
Los Angeles and Long Beach saw
over the past year 3.
a 14% increase in containerized
imports in 2021 1.

The cost of supply chain disruption In 2021, global trade

reached a record high of
approximately US$28.5
trillion; an increase of
almost 13% compared to
pre-pandemic numbers7.
25.9% 21.7% 10 x
increase in inventory increase in increase in shipping rates
carrying costs5 transportation costs5 compared to June 20206

Sources: 1 The White House 2 Accenture 3 Reuters 4 World Shipping Forum 5

5 Council of Supply Chain Management Professionals (CCMP) 6 Accenture 7 JOC
The state of ocean freight: stats and trends to keep an eye on
International shipping container
rates will fall but are unlikely to
return to pre-pandemic levels
Following two years of container shortages
and port congestions, disruptions are
now beginning to ease as Chinese exports
slow in light of reduced demand from
Western economies and softer global
economic conditions.
Sources: 1 Drewry 2 Drewry
Demand for goods surged during the
pandemic, outstripping supply and setting As of January 2023, prices
record prices for container shipping
rates around the world. The Drewry World
had decreased to around
Container Index – a key benchmark for USD$2,135 per 40‑foot container,
container prices – recorded a 370%
down 77% when compared to
increase in the average container price
during the height of the pandemic, the same time last January.
reaching US$10,377 per 40-foot container 1.
As of January 2023, prices had
decreased to around USD$2,135 per However, shippers are finally seeing
40‑foot container, down 77% when continuing improvements in both
compared to the same time last January. transit times and in port delays.
According to Drewry, freight rates on Since January 2022, port congestion in
major routes have also eased, with costs North America has halved from 20 times
for routes like Shanghai‑Rotterdam the norm to about 10 times the norm.
and Shanghai‑New York falling by up Additionally, transpacific eastbound
to 86% and 72% respectively. “best case” transit times (from the
last port in Asia to the first port on the
Despite this downturn, freight rates remain West Coast of North America) have
around 50% higher than pre-pandemic shortened from around 34 days in
rates of US$1,420 per 40-foot container. January to 20 days in July 20222 .
This is a result of several factors including
ongoing labor and material shortages
and recent major disruptions such as
the Ukraine-Russia war and the resulting
energy crisis, as well as a shift to longer
term contract rates that are locking
in higher tariffs.
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What is supply chain visibility
and why is it important?
It’s clear that the past decade has
seen a massive shift in consumer
expectations, particularly in relation to
international shipments.
It wasn’t so long ago that we, and our
customers, weren’t particularly concerned
about extended shipment times and
unexpected delays – not only were they
tolerated, they were expected.
That isn’t the case today. The rise of
ecommerce brought with it a consumer
demand for immediacy and instant
gratification. As shipping times decreased,
expectations increased, with failure to
deliver resulting in reputational loss and
a lack of consumer confidence.
The fallout of COVID-19 and subsequent
market disruptions certainly hasn’t eased The definition of visibility has
these expectations.
expanded to include real-time
Consumers are not only still looking for fast, insights that can predict events
convenient and flexible shipping – they also
need to know where their shipment is and milestones, identify resource
at any given time, with an accurate and requirements and warn operators
exact prediction of when it will arrive.
about potential disruptions
These pressures have been passed before they occur.
onto freight forwarders, who now
need to give all involved stakeholders
accurate and detailed shipment
information as it moves across the
supply chain, so they can improve the
control they have over their operations,
inventories and communications.
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What is supply chain visibility and why is it important?

Data visibility is more than just

Freight forwarders need to deliver supply chain transparency information on a screen. It’s what
despite ocean shipping obstacles you do with it that sets you apart.
From knowing where your shipments are around the world to predicting and avoiding There is no denying that the fundamental
costly disruptions, the importance of supply chain visibility has never been clearer. process of moving freight from A to B by
sea is more complex than ever before.
Traditional manual processes Data-backed visibility tools
And regardless of how much uncertainty
Manually sourcing and Mitigate potential disruptions you are navigating, customers increasingly
updating data from individual before they occur expect transparency at every stage of
carrier websites this process.
Model future impacts based on
Slow response times and poor historical data and events With so much information moving across
customer service the industry to support increasingly
Free resources to spend more complex logistics processes, data is one
Inability to plan ahead and time on higher-value projects of your most valuable assets.
appropriately manage resources
Move to a position of strength, However, access to data is only one part of
Error-prone data management where you can scale and flex assets the equation and it can be easy to believe
resulting in unnecessary costs and resources across different the more data points you have, the better
business portfolios, in response your decision making capabilities are.
to whatever challenges you’re
presented with. Yet, with all the additional pressures facing
freight forwarders today, you don’t have the
time to be watching your data, or trying to
decipher numerous data points across
multiple vendors.

To successfully navigate this new normal

and respond to disruptions from a position
of strength, information must be current
to be actionable, and it ideally needs
to be available via a centrally managed,
single logistics record.
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Four tips to achieve supply
chain visibility
Unleash the power of
1 your data
The first step in building resilient supply
chains is knowing what your supply chain
looks like.
Investment in digitization and automation
of key processes and systems can
help build capabilities that allow freight
forwarders to react faster and make
data‑based decisions.
Low quality data creates low quality
shipments. Data needs to be clean,
complete and accurate for it to be useful.
Advanced AI and machine learning
technology can give freight forwarders
an extended view of their supply chain
for critical decision making in the face
of major (or minor) trade and supply
chain disruption.
By employing intelligent analytics to help
anticipate future events, behaviors and
outcomes, decision‑makers can not only
easily identify what’s going to happen,
they also have access to the knowledge
and insights necessary to determine
the best course of action.
Employ a single platform for Visibility is more than
2 your entire supply chain knowing where your
shipment is and when
Relying on multiple, patched together
systems that don’t communicate with each
it’s going to arrive
other is a huge risk. ​That’s because you What’s important is:
can’t accelerate or innovate if you are lost
in a complex maze of disparate, costly or
unsecure systems. Every new platform is a
new cybersecurity risk, and an additional
resource and cost for your IT and
cybersecurity teams to manage.
Imagine having one secure system capable
of retaining and exchanging your entire
Knowing what to do when the
shipment data while offering a portal for
shipment arrives (assigning
all your trading parties to monitor and
resources, arranging trucks,
maintain their supply chain – providing
preparing warehouses etc)
standard connectors, simple status
updates, and global visibility.
A single platform software solution means
there’s no configuration, mapping or
maintenance required – and with all
your end-to-end shipment movement
data embedded, you don’t have to
worry about plugging in (or paying for) Being alerted and able to
any additional third-party platforms. take appropriate action when
a shipment isn’t where it’s
meant to be
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Four tips to achieve supply chain visibility
Focus on the right data,
3 at the right time
The beauty of advanced AI and machine
learning functionality is that it should do a
lot of the work for you.
Supply chain visibility functionality should
remove the need for you to watch your
data, allowing you to spend more time on
the work that matters – revenue growth,
customer satisfaction and future scale.
This is because the best software tools
will tell what you need to know, when you
need to know it.
For example, knowing how many containers
are currently stuck at a transhipment
port is important, but automatically
receiving an alert against each container
that is stuck, means you can better
forecast timeline changes and manage
customer expectations.
Furthermore, you can identify patterns
and amend repeated operational mistakes
before a container gets stuck in the
first place.
Maximize the power of your
4 data through collaboration
The creation of transparent and resilient
supply chains relies on the collaboration
and sharing of data between all maritime
There is a misconception across the
supply chain stakeholders – including
maritime supply chain that data is so
freight forwarders, carriers, ports,
valuable it should not be shared.
customs authorities, and domestic
However, data is not valuable on its own transport providers.
– what’s valuable are the insights and
Investing in technology that facilitates
automation derived from that data, which
cross-network communication helps
can only be obtained when shared with
produce high quality data all parties
other parties.
can rely on.
The COVID-19 pandemic exposed many
weaknesses within global supply chains,
which were greatly exacerbated by a lack
of transparency and communication
between involved parties.
Data sharing can be as simple as
knowing when a vessel is due to arrive,
so that stakeholders can coordinate
their operations and allocate resources
effectively – to avoid delays and
reduce overheads.
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Achieve improved end-to-end ocean visibility
with CargoWise
Global logistics companies have faced
a slew of challenges, and they continue
to deliver. However, as existing and new
pressures collide, a focus on visibility and
transparency will become increasingly
critical. And measuring it effectively will
need to take center stage.

CargoWise removes the limitations of

third-party connections and broadens
the scope of connectivity you can
access with industry leading direct
carrier connections to ocean carriers
and NVOCCs around the world.

Using information obtained from ocean

carriers, NVOCCs and ports world wide,
as well as land-based and satellite AIS
technology, you can achieve meaningful
ocean shipment visibility, regardless of
where you sit in the supply chain.

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Achieve improved end-to-end ocean visibility with CargoWise

Why the world’s largest freight
forwarders choose CargoWise
No set up required. No plug-ins either
Remove the need to run multiple,
complex systems and ensure shipments
are managed with speed and precision.
With your end-to-end data deeply
embedded into CargoWise there’s
no configuration or set up involved.
Which means you don’t have to worry
about complicated and expensive
software integrations.
Become part of a powerful,
global network
Make accurate, data driven decisions
With access to a range of legitimate data
sources, our advanced machine learning
algorithms and inbuilt, fully customizable
Workflow engine, allow you to make
informed decisions, reduce risk and
respond to supply chain volatility.
Events flow throughout the whole of the
container lifecycle, automatically alerting
users when a milestone is set to be missed,
at which point they can swing into action,
advise impacted parties downstream in
the supply chain, and plan contingencies.
Connect directly to the world’s
ocean carriers
Our growing list of direct container
line connections means 95% of ocean
freight can be booked through direct
carrier feeds from ocean carriers
and NVOCCs – providing you with
access to direct electronic messages
for schedules, bookings, contract
rates, tracking, verified gross mass,
shipping instructions, and bill of
lading data.

We have a powerful network of

CargoWise connections, drawing in
thousands of nodes that bring millions
of further connections – each carrier,
each forwarder, each shipper, each
party to a transaction, each module,
each geography, and each technology
create further nodes, and with them,
exponential connections.

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Start building more
transparent supply
chains today
Are you looking to reduce
time-intensive data entry
across multiple systems and
speed up critical logistics
and business processes?

Learn more about CargoWise’s

ocean visibility capabilities
at cargowise.com/ocean, or
request a consultation from one
of our leading industry experts
to see CargoWise in action.

cargowise.com/ocean

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