Hapag-Lloyd Strategy Presentation
Introduction
Most major companies are now operating in a global level and rely on an effective global supply chain management because their production is based on the smooth circulation of goods. Congested ports and inland transport congestion are becoming significant problems that can hinder the efficiency of global supply chains and can add additional costs to the production and delivery of commodities which will result in shortages of goods in the market and higher prices for the final product. This happens because ports are gateways into continents and from ports goods are transferred to the mainland. As a result a congested port can affect the entire distribution of some products in a wide region. Although traffic in ports was reduced in the past few years due to the economic recession, according to forecasts, the amount of cargo going through ports is going to rise dramatically by 2020, affecting the congestion issues for many ports. (Maguire, A. et al, 2010). Port operations can be subcategorized in three sectors. Firstly, there are the seaside operations where vessels arrive at the port and a berth should be available for the ship to unload or load its cargo. Secondly, there is the yard operation of the port where the cargo is handled and stored after the loading or unloading has taken place. The last sector is the landside operations which connect the yard side with the mainland and it is responsible for managing any incoming or outgoing cargo. (Maguire, A. et al, 2010). Furthermore congestion can be found and in hinterland transport and can have the same impacts as the port congestion has. This paper will identify issues ports are facing according congestion and will suggest appropriate solutions.
Financial and Political concerns
Before going in depth on analyzing the specific congestion issues that port and inland transport are facing, some general issues should be addressed first. A common problem is the lack of investment capital. The reforming and
Most major companies are now operating in a global level and rely on an effective global supply chain management because their production is based on the smooth circulation of goods. Congested ports and inland transport congestion are becoming significant problems that can hinder the efficiency of global supply chains and can add additional costs to the production and delivery of commodities which will result in shortages of goods in the market and higher prices for the final product. This happens because ports are gateways into continents and from ports goods are transferred to the mainland. As a result a congested port can affect the entire distribution of some products in a wide region. Although traffic in ports was reduced in the past few years due to the economic recession, according to forecasts, the amount of cargo going through ports is going to rise dramatically by 2020, affecting the congestion issues for many ports. (Maguire, A. et al, 2010). Port operations can be subcategorized in three sectors. Firstly, there are the seaside operations where vessels arrive at the port and a berth should be available for the ship to unload or load its cargo. Secondly, there is the yard operation of the port where the cargo is handled and stored after the loading or unloading has taken place. The last sector is the landside operations which connect the yard side with the mainland and it is responsible for managing any incoming or outgoing cargo. (Maguire, A. et al, 2010). Furthermore congestion can be found and in hinterland transport and can have the same impacts as the port congestion has. This paper will identify issues ports are facing according congestion and will suggest appropriate solutions.
Financial and Political concerns
Before going in depth on analyzing the specific congestion issues that port and inland transport are facing, some general issues should be addressed first. A common problem is the lack of investment capital. The reforming and
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