Global e-Commerce Retailers Faces Uniques Challenges in Preparation For the Upcoming Ocean Contract Year

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E-COMMERCE FACES UNIQUE CHALLENGES IN PREPARATION FOR THE UPCOMING OCEAN CONTRACT YEAR

With the May 1 Ocean contracting year now less than 2 months away, it is clear that the ocean supply chain challenges that have plagued the industry for nearly two years will continue well into the spring months, and likely for the remainder of 2022. 

It is a reality that little-to-no additional capacity will be injected into the major Asia outbound trade lanes. Due to persistent conditions throughout the U.S, containers continue to pile up on anchored vessels at ports and distribution centers. Even with President Biden’s plans to roll out a multibillion-dollar plan to fix this problem, it is assumed that the Supply Chain issue will last at least to Q3 this year.

Meanwhile, the Chinese government has put pressure on factories to keep workers from traveling back to their hometowns for the Lunar New Year holiday due to the ongoing COVID-19 pandemic. Furthermore, with the relentless backup of vessels at anchor and the gridlock within the port complex, all factors point to a very busy “post-Lunar New  Year”.

Here is a checklist of things e-Commerce businesses should be looking into already: 

  1. Explore all the possible shipping options you have. What are the best shipping methods and is the shipping cost still at the top priority?   
  2. Shipping delay is the new norm of 2022. With all the unexpected situations, e-Commerce should always have a plan B for their fulfillment operation and a ready – to go protocol to keep your end customers happy while they are looking for their packages. Here is an example of how Floship helped an e-Commerce brand to ship over 100,000+ orders during the Covid-19 pandemic period.  
  3. Re-prioritise your fulfillment orders. What would be your absolute top-of-the-list must ships and what can be taking a step back if the situation required. 
  4. Communicate with your 3PL partner, they are your pair of extra eyes and ears on the workforce, who provide full visibility on the latest status of operations, so you and the rest of the team can plan accordingly.

Our objective here is to look for the list of alternatives that will minimize the possible hiccups that all global e-Commerces will be facing in 2022. It is always beneficial to plan ahead and have plan B available in your pocket. It’s not too late to start planning now. Reach out to one of our fulfillment experts at Floship today to explore your full list of options.   

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