TradeTech: Transparency and Accountability in Supply Chains
Since the outbreak of the pandemic, global supply chains have been at risk. Various challenges have arisen as a result, including delays, increased shipping prices, port congestion, and more. Here's how TradeTech may help avoid such issues.
Global supply chains have been in trouble since the onset of the pandemic. The disruptions have led to increased cargo prices, bottlenecks in semiconductor supply chains, a lack of containers, delays, and port congestion.
Here’s how TradeTech can help avoid such trouble in the future.
Managing Information
Global supply chains involve many stakeholders from carriers, shippers, cargo owners, and ports to terminals, customs, freight forwarders, and finance partners. One key challenge is to manage the information across this network. If that is not done accurately, issues will arise.
Dangerous Goods
Container vessels often move between continents, making multiple stops. Since this involves a complex process, it is impossible to check every load. Because of this lack of transparency, dangerous goods might not get checked to the degree they should. Monitoring sensors, however, could solve this issue.
Trustless Tools
Shippers make declarations of cargo in the booking process, which requires trust. Carriers use this documentation to make stowage plans, pricing adjustments, weight control, metacentric height (GM), vessel stability, customs declarations, inspections, and crew safety. If cargo is misdeclared, that can lead to delays, failures, and added costs. Digital platforms could reduce the paperwork and automated processes, reducing errors and speeding up the shipments.
Risk Management
Weather and road conditions, traffic jams, or port congestion do not come out of the blue. There is lots of data recording all of these events. Better technology could streamline these data and provide them to decision-makers in an easy-to-digest format and in real-time. This way, shippers can make better decisions and manage risks.
The Outlook
TradeTech is gaining momentum. By 2025, most cargo assets will be equipped with sensors. Such tools will make early interventions easier and allow for risk management decisions.
They will create accountability and transparency and help avoid past mistakes. Yes, global supply chains are complex. But we have the technologies to make them manageable.
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