Maersk takes action to tackle supply chain issues



        Narin Phol, Managing Director of Maersk North America, discussed the current challenges faced by the US supply chain in a panel discussion at the South Atlantic International Trade Conference and proposed a series of solutions.


        "The current situation is a story of growth in the U.S. and supply chain disruption. What you see is a by-product of this growth," Phol said, adding that the challenge is that every part of our supply chain needs to build more flexibility and follow-up. The ability to meet consumer demand.


   In early 2020, due to the new crown pneumonia epidemic, ports and production in the Far East were interrupted, which affected the normal flow of trade in the United States. Now life in most parts of the United States is returning to normal.


  According to Maersk data, the recovery of American household demand has promoted the growth of American imports, and 70% of the US gross domestic product (GDP) is related to consumer purchases.


  Phol commented that the Danish shipping company appreciated President Biden's remarks that only with the full support of all supply chain participants can a full return to normalcy be achieved. He said: "It will take some time, but we are doing our best to deal with the current environment effectively and looking forward to the restoration of normal cargo flow and transportation."


        "The 24/7 operation details of the Ports of Los Angeles and Long Beach still need to be finalized. This level of operation is not a simple solution that can be achieved overnight, nor can it solve the broader supply chain capacity challenges and trucking, warehouse and supply There is a shortage of workers in chain jobs."


   At present, APM Terminal 400 in Los Angeles provides 20 hours of truck door operation service on weekdays, requiring reservations for 2,000 trucks every day, and it is also open on Saturdays. Among the 2,000 truck bookings made on October 15, the vacancy rate for imported containers was 49%, compared with 50% on Saturday.


   Maersk North America Managing Director said: "The company is cooperating with the truck industry to solve this problem."


   Other measures taken by Maersk to alleviate capacity problems and insufficient distribution are the integration of assets in the supply chain.


   Phol pointed out: "When you own and operate supply chain assets and technologies, you will have better control and accountability of the supply chain, and solutions will be more flexible."


In addition, Maersk has made efforts to alleviate global logistics problems by adding 40% of ships to trade and trade capacity between Asia and the United States, as well as expanding the US East Coast port call to create more supply links by choosing to replace the Pacific Southwest port, according to a report. statement.


   In addition, the world’s largest shipping company stated that it is expanding land logistics and establishing new warehousing and distribution locations in high-demand areas to support the flow of goods.


Obtaining the direct-to-consumer help of e-commerce logistics companies to help customers grow space is to face another one-step supply chain problem of Maersk, helping by providing 95% of the U.S. market and 75% of the market share within 24 hours by providing delivery within 48 hours Small and medium customers compete more effectively, according to an announcement.


   Boll concluded in his speech: "Maersk has transformed into not only a maritime carrier and port operator, but a full-service end-to-end logistics service provider."