A tenfold increase of the container price

Let’s start with the fact that global and market developments can have a huge impact on logistic processes. For example, if we look at container prices in December 2021, they were 10 times higher than normal. This had an unprecedented impact on the economy. There were several reasons for this enormous increase. As you may recall, the container ship Ever Given blocked the Suez Canal. And, of course, logistics had to deal with the impact of COVID. Due to the zero-tolerance policy in China, ports in Shanghai and Ningbo were regularly closed and suppliers had to divert to other ports, increasing pressure there. This also created a shortage of containers. And if that was not enough, the economy recovered considerably. We saw a huge increase in the number of online orders. All these developments combined caused container prices to skyrocket dramatically.

Higher prices, longer transit times.

An exorbitant price increase was one of the consequences. But transport also took longer. Whereas transport from the ‘far east’ to Rotterdam normally takes about 32 days, the transit time increased to 55 days, with peaks of 155 days due to overloaded containers. On the other hand, the transit time suddenly plummeted to 37 days again in 2022. Containers were suddenly in ports much faster, allowing a large number of containers to arrive at European ports simultaneously. This was also not a desirable situation.

Exercising influence

Fluctuations in transit times (and prices) are not ideal for anyone. That is obvious. But how do you ensure that you can influence this? The answer is data, particularly, understanding that data. Because by collecting, linking, and integrating as much data as possible, we gain a very clear understanding of those transit times and the developments that can influence them. As a result, we can act faster and better and adjust where necessary.
De Boer Group has been fully engaged in researching and developing ways to better control forwarding in recent years. Through data integration, we are increasingly able to influence all four transport legs of the supply chain, right down to the supplier.

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Collect and integrate as much data as possible

In transport leg zero, we ask customers for a shipping plan. By anticipating the expected transport, we avoid problems in advance. How many containers do you expect that we need to ship from port to port, during which period, what needs to be shipped and what is the pallet pattern? Because we receive as much detailed information as possible from our customers, we have a better understanding of the process. This allows us to look closely at an average for all our customers, considering seasonal peaks and other trends throughout the year. By also adding as much data as possible from suppliers and warehouses to the dashboard, we generate a secure forecast. That is not only good for us, but also for you, as it guarantees that we will unload for you. This ensures that you have sufficient stock, but also that you never have too much stock in your warehouses. After all, that stock has to leave the warehouse as quickly as possible.

Close to the source

We also exert influence in the four transport legs of the actual logistics process. In transport leg one, your goods are produced and then taken to the port, ready for overseas transport. That first transport leg is of unprecedented importance for the rest of the process. Because if there is a delay here, the rest of the process also slows down, creating a snowball effect. Through our dashboard, we continuously check all data such as cargo ready date, booking date, estimated time of departure, and required pick-up date; the day of departure from the supplier. Where necessary, we exert influence. Because we are also based in Hong Kong, we exert influence and interact with the supplier on behalf of our customers. This allows us to adjust in time.

Managing transit times

In transport leg two, your goods go from the Chinese port to the European port. Here, too, we continuously keep our finger on the pulse with our dashboard. What is the expected transit time? Where is the ship now? How many milestones have already been covered? We constantly monitor whether your transport is on schedule. But we also look at the longer time period. Because as soon as we see transit times increase or decrease, we will inform you immediately. You will then have to schedule your orders with suppliers earlier or later to avoid having too many or too few products in your warehouses. By keeping on top of everything here as well, we can also make timely adjustments in transport leg one.

Accelerating the process

In transport leg three, your goods are in the port in Europe to be shipped by river to our warehouses. If there is a delay in transport leg two because the transit time has increased, we will know well in advance because our dashboard has alerted us in time. So we are already prepared to use our own trucks to transport your goods directly from the European ports to your or our warehouses. This significantly speeds up the process. If your transport does go to the inland port by river, then in transport leg four your goods are forwarded to your or our warehouses.

Data as the basis of integrated cooperation

With our dashboard we create calm and maintain control. By adding and integrating more and more data to that dashboard, we can respond even better to similar situations in the future. Because there are always better and more accurate predictions to be made. It is therefore important that all information flows are linked so that we can work together in an increased integrated manner in the chain.