Nike’s Port Congestion Woes Show Need For Maritime Visibility

  2021 03 22 Nike

Given the widespread congestion that has beleaguered top US ports in the last months and the concomitant disruptions to global supply chains, we at project44 were not surprised when Nike, Inc. reported that its third-quarter sales were hurt by those problems. The Beaverton-Oregon based company said its revenue in North America dropped 10 percent in large part because the footwear and apparel maker-retailer has faced shipment delays lasting more than three weeks.

Importers Face Delays From Covid Port Congestion

Nike is hardly alone in struggling with port congestion. Ever since the Covid-19 pandemic struck, US importers of ocean cargo have found it difficult to retrieve their containers in timely fashion from West Coast harbors, particularly Long Beach and Los Angeles. Container throughput at port terminals initially slowed last year as dockworkers fell sick and government regulations limited work hours. A surge of imports from panic-induced buying further stalled port throughput. 

Like all US importers faced with cargo delays and uncertainty over maritime shipping, Nike would benefit from having real-time visibility, information, and intelligence about their shipments coming across the ocean. As the pandemic has painfully demonstrated, visibility helps global supply chains to react and adjust to uncertainty and take actions to work around port congestion.

The Union of project44/​Ocean Insights Gives Much Need Enhanced Global Visibility

With the recent acquisition of Ocean Insights, project44 is uniquely positioned in the industry to help global supply chains moving ocean freight with risk mitigation and contingency planning. The combination of Ocean Insights and project44 provides an advanced transportation multi-modal platform with robust ocean-transit visibility and intelligence to help importers manage intermodal connectivity at congested gateways.

Ocean Insights pioneered the combination of container liner schedules and carrier’s container tracking information with neutral automated identification system (AIS) vehicle tracking data, allowing customers to plan and monitor operations at a level never experienced before. 

Tracking some 350,000 containers on any given day, Ocean Insights has a broad scope of maritime coverage compared to other providers. Ocean Insights provides track and trace functionality across the vast majority of shipping lines, 700 seaports, and more than 5,000 vessels as well as handling more than five million sailing schedule changes per day.

Advanced Ocean Track and Trace Technology and Intelligence

With Ocean Insights functionality, project44 takes ocean visibility to the next level for track and trace technology in regard to maritime and operational intelligence. Global shippers enjoy predicted time of arrivals and warnings from port of loading (POL) to port of destination (POD), including transshipment ports and rollovers. By having dynamic estimated time of arrivals (ETAs), supply chain managers can make realistic plans for arrival and prioritize shipments based on intelligence regarding weather, location, and routing history.

project44/​Ocean Insights offers supply chain executives milestone alerts during the ocean voyage so they are apprised about potential transit delays. They can use that information to keep their trading partners, inland carriers, and customers in the loop about possible schedule disruptions and work with them to proactively manage exceptions.

Finally, project44/​Ocean Insights offers carrier and port benchmark performance analytics that importers can use for planning future ocean movements. That information can be used to select carriers, seafaring routes, and ports with a track record of solid performance.

The Pandemic Reinforces the Need for Ocean Visibility

Port congestion resulting from Covid-19 pandemic drives home the point that many importers are still lacking the ocean visibility technology to manage water movements in their global supply chain. By having in-transit ocean shipment visibility and advanced intelligence, importers can bring about a more responsive supply chain, better manage the flow of their imports, and ensure the likelihood of products for sale.