Congestion amid high demand – What can we do about it?

Usually in the economy, when there is a demand, the supply will rise to match it in order to produce the desired result. If there is a lack of supply, the demand will be left unfulfilled. The shipping industry is the same but what if the supply of container is not able to meet the demand of the cargo that needs to be shipped on time?

In Singapore, shipping is very crucial activity here as it serve as a top transportation hub for both many international countries around the world. Due to the position Singapore has on the world map, it functions as a source of connectivity to the Asian market through sea and air freight. Not only that, it is very common for local Singaporeans, it to purchase goods online to obtain any desired products sold overseas.

Ever since the lock-down has started due to COVID-19 pandemic, the online orders have experience an spike increase in their numbers. This means that the shipments transportation is undergoing higher pressure than every to delivery the expected quality. However, instead of a steady flow, there have been congestion for the cargo at Singapore since last year. There are 46 cargo that is stuck for more and two whole days in January, while it increased to 52 last month in February.

Multiple factors lead to the current impasses which stems from the worldwide lock-down that is happening all over the globe. International Shipping does not just involve the internal processes of one single port or country. It requires the efficiency of other ports in order to create an flow of supply chain that delivery the goods to the target on time. As the cargo congestion also occurs in other places, it create a even worse problem as the delay will culminate into an even greater congestion here.

In addition, there is a lack of container in the to meets the demand that is arising in the market. The number of container with empty space available are decreasing while the are many goods awaiting a chance to be loaded. This result in a delay that is worsen by a shortage of port labour. As a result, the cost of freight forwarding has now increased while the trend of online purchase will not be reducing anytime soon.

It may be seems by some people that there is nothing we could do seeing how it just is the consequence of a natural force like COVID-19. However, one thing which crisis such as this can’t slow down or even lead to an advancement is technology that we wield.

Smart Logistics Solution is an example of an answer to the problem that we are currently facing. With IoT technology equipped, users will be able to know the exact detail of each container they have, the amount of empty space available, location of each cargo, all managed remotely through a device 24hrs daily. Managers can be drastically improve their route planning, make more informed decisions and react to impromptu demands more effectively.

Even with all these problem, the demand for speedy delivery will not be going down but rather continues so businesses should adopt solution such as this to reduce the detrimental impact of such a crisis and maintain their reputation among their customers.

1 Comment

Leave a Reply

Your email address will not be published.