4PL and FTZ Operators See Spring Supply Chain Shortage

Young Company FTZ News

Across each function on the supply chain, logistic operators are sending a warning sign. Newly imposed Chinese lockdowns, in an attempt to keep the Omicron variant stifled, will halt imports/exports, mail delivery, external package delivery and cause the global supply chain to fall behind, again. China represents almost one third of all global manufacturing and, as a result, when China slows down, the rest of the world feels it.

Beijing in particular has a very strict zero covid policy, which allows it to impose tight quarantine guidelines and severe travel restrictions, inside the city, outside the city, or with other countries. This policy includes import activity. The city that more than 16 million people call home has enforced this policy many times since the covid pandemic began in early 2020.

Here in the US, stores are reflecting multiple supply chains that have been experiencing more than 2 years of strain now. Employees fall ill, truckloads of groceries arrive late, and the ‘get it while you can’ consumer mindset are all contributing to the empty shelves and unstocked displays we see at grocery stores across the country.

ITC Diligence International Inc. is a 4th party logistics operator that has seen over 30 years of supply chain disruptions. Be it political, health related, or logistics, the 4PL experts at ITC Diligence International Inc. have built a critical process that seamlessly integrates with your systems to plan ahead and prepare for supply chain slowdowns.

When imports and exports are disrupted, it can cause serious problems that aren’t just about delivery. For example, when transporting perishable goods, there is a narrow time window in which these goods can be appropriately delivered without spoiling. An unforeseen delay, especially if it’s indefinite, can see the ruin of millions of dollars in perishable goods. This happens often unfortunately, and when the cargo is not insured, there isn’t too much that can be done. In this example the business importing will likely take a loss. ITC Diligence International Inc. has seen this scenario come up numerous times with clients and has been able to bring peace of mind and financial restoration with affordable cargo insurance.

In partnering with Avalon Risk Management, a cargo insurance provider, ITC Diligence International Inc. has created custom strategies designed to fit the needs of importing and exporting businesses when calculating risk. Perishable goods present a unique risk challenge for importers when supply chain slowdowns can come seemingly at any time. If a company or group of companies has goods that are coming into the US that can spoil, and they end up sitting out in the ocean or in a harbor enduring terminal wait times, or worse, needing to pass stricter entrance guidelines, All-Risk cargo insurance can be the saving grace for goods gone bad. Naturally, this type of insurance won’t restore any ruined inventory, but the cost for which they were paid can be reimbursed and compensated, giving the importer a clear path forward in a situation that is normally deeply stressful.

By the spring of this year, many supply chain and logistic operators are saying the tenuous flow of goods is going to slow down. Covid continues to wreak havoc in a business world that is doing it’s best to move forward and keep the wheels of our global economy moving. What’s more, China is about to enter the Lunar New Year, a time when the country normally slows down significantly to celebrate the turning of the calendar. Usually, this gives ports of entry here in the US time to catch up, but with so many hands falling ill and not being able to work this year, experts are emphasizing that there simply won’t be enough help to make a difference.

Anticipating and getting ahead of these supply chain hang ups while making sure that the cargo on these ships is protected is one of the main missions at ITC Diligence International Inc. and with over 30 years of experience doing exactly that, they have built the 4PL program that will meet the shifting needs of importers and exporters across the world.

Contact ITC Diligence International Inc. to build a strategy today that can help get ahead of the inevitable slowdown that will come tomorrow.