The shifting of the global trade landscape, Brexit, COVID-19, tariffs, regulations, and other events that have taken place in just this past year alone have rocked global supply chains to their core. Supply chain networks are built for change, but prior to the beginning of 2020, no company had forecasted the black swan event that was to come nor the long term impacts that would follow.
Some may call it the new normal others may call it the extended crisis as aftershocks are still being unleashed and felt all over the world; whatever it may be, value chains are currently under tremendous pressure due to a confluence of variables. The depth and breath of the issues unveiled by the pandemic have posed serious challenges for the trade landscape.
We now find ourselves in the midst of a volatile global shipping crisis. Costs are up, capacity is down and supply chains are stretched. Shipping bottlenecks threaten global economies as delays continue to increase and transport fees grow considerably resulting in unfulfilled demand.
The original disruptions began at the onset of global shutdowns and government lockdowns. Stores closed down their physical locations, but online sales grew more than 25 percent globally according to research by Statistica. Like many other industries, the online shopping market for goods and services had undergone a substantial transformation. As a result, the unprecedented rate of online orders during a period of lockdown had challenged supply chains to become resilient and to meet consumer demand. Shipping companies quickly found themselves reacting and playing catch-up.
Now, as shipping companies continue to operate despite ongoing setbacks, a shortage in containers and shipping delays are prolonging supply chain disruptions. According to VesselsValue, today about 350 containerships capable of carrying almost 2.4m 20ft boxes are waiting off ports globally. Supply delays and increased consumer prices will have inevitable ramifications.
The longer delivery times are putting a strain on supply chains and working capital. At TradeRiver, we offer a truly cross border solution to keep your supply chain moving and your business growing. A facility that provides you with an unsecured revolving credit line eliminates the risk of having cash tied up in transit. Ease your cash flow pressures with up to 150 days additional credit. As supply chain disruptions pile on, having peace of mind and a security net to operate with confidence is priceless. Learn how you can bridge the revenue cycle today.
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