Hey there! Welcome to this very special edition of Supply Chain Radar!

This week we explore nightmarish congestion, the birth of mega-ports of the future, and a shakeup in the FreightTech space. But before all that, let’s talk about spot rates...

Shippers are always faced with two paths when looking to book freight. Do they risk the whims and wild swings of the market for the chance of saving some money on shipping charges? Or, do they forego the potential savings and lock in with a contract rate?

The pandemic threw all previously benchmarked rate data out the window and turned shipping on its head for two years. Now that the dust is slowly beginning to settle, shippers are facing an unfamiliar landscape with two painfully familiar paths.

Sign up for an exclusive Supply Chain Radar webinar and join the debate on the merits and pitfalls of both spot and contract rates with industry experts.

Now, On to the neeeeeewwwsss!!!!!

Week's Top Stories 🗞️

Peak Shipping Season is Here, and the Congestive Nightmare Could Continue
The Birth of the World’s Largest, Fully Automated Port
As the Bottom Falls out of the FreightTech Market, FourKites Announces its Latest Funding

Peak Shipping Season is Here, and the Congestive Nightmare Could Continue

While we try our best to approach the state of the supply chain with optimism, the sad truth of the matter is that we (the global ‘we’ in this case) still have quite a ways to go before things return to true “normal” for the supply chain.

Peak shipping season is officially underway as the ramp-up to the holidays begins. DHL Global Forwarding says it’s “way too early” to make any positive claims about congestion decreasing or trade volume softening.

“We are not yet really out of the woods when it comes to congestion,” said Goetz Alebrand, Ocean Freight Head for the Americas region of DHL Global Forwarding. “The supply chains that are ocean based around the world are very, very vulnerable to these interruptions or disruptions, so it’s really difficult to say right now how these disruptions will impact overall volumes.”

The supply chain is maintaining a precarious balance, and the potential disruptors that could bring stability toppling down are growing by the day.

The Birth of the World’s Largest, Fully Automated Port

Big news from Singapore this week as the first phase of the Tuas Mega Port was officially opened on Thursday. The initial phase will see three berths manned by 500 workers, with plans to push development further continuing to grow.

Prime Minister Lee Hsien Loong said the port will be a “critical engine driving Singapore’s economy” and will help to bring the country to the center stage of maritime trade and activity.

“Our decision to press on with Tuas Port sends a strong signal to the world that Singapore is open for business. We are going full steam ahead,” he said.

The $20 billion facility is set to be a true game changer for both Singapore and the shipping industry as a whole. Especially if the claims of full automation bear fruit.

Check out the Tuas Mega Port here

As the Bottom Falls out of the FreightTech Market, FourKites Announces its Latest Funding

Undoubtedly, global events have not been kind to the shipping industry. However, the wild swings, congestion, and shortages have affected more than just shippers, carriers, and manufacturers. FreightTech companies, which were seeing a boom in the years leading up to 2020, are now scrambling to keep their doors open, leading to layoffs from most of the major players.

FourKites has likewise been affected and conducted its own round of layoffs. However, unlike some of the other tech firms, FourKites might end up faring better than the competitors, owing largely to the partnership with FedEx, which was announced earlier this year.

The partnership and investment from FedEx couldn’t have come at a better time, as FourKites was just beginning to see its investor pool beginning to dry up. FedEx, for its part, is turning inward to improve visibility and its global service offerings.

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