International trade continued to face disruptions in July as a faulty software caused a major disturbance to Microsoft’s operating system and affected logistics providers and carriers. The interference was yet another distraction in an increasingly long list of issues impacting international trade.

For example, the Red Sea crisis entered its tenth month of attacks on ships and infrastructure. However, as the crisis continues, it is now impacting trade lanes beyond the region and creating more headaches for shippers, forwarders and carriers.

In addition to the Red Sea Crisis, concerns of a potential U.S. East and Gulf Coast port strike have resulted in a peaky pre-peak season. Whether or not ocean freight demand can be sustained remains questionable.

3rdwave is all about helping international shippers take control of their shipments and processes in a global market rife with disruptions. To learn more, contact us today.

In the meantime, read on to learn more about the recent news and trends that are shaping international shipping.  

CrowdStrike Disrupts Trade

A faulty software update from cybersecurity firm CrowdStrike caused a major disruption to Microsoft’s operating system and impacted numerous industries including freight transportation. Port Houston temporarily closed its Barbours Cut and Bayport Container terminals and luckily reported only minimal operational delays. However, Air France KLM Cargo reported that the outage was “causing severe disruptions to our worldwide flight and cargo handling operations.”

Peak Season Comes Early

According to consulting firm, Sea-Intelligence, carriers are optimistic about the traditional peak season due to substantial relatively low blank sailing levels and to the substantial capacity expansion.

However, this year Red Sea vessel diversions, port congestion and a diversion of some discretionary cargo to the West Coast from the East and Gulf coasts due to concerns about a possible strike by the International Longshoremen’s Association (ILA) have resulted in a peaky pre-peak season.

Has Global Demand for Ocean Freight Peaked?

Global demand for ocean freight container shipping hit an all-time record in May amid soaring spot rates and severe port congestion. “This is a perfect storm of pressure on ocean supply chains which has resulted in the chaos of recent months. In many respects it is impressive that global shipping networks have been able to transport this enormous volume of containers under such challenging circumstances,” said Emily Stausbøll, Xeneta Senior Shipping Analyst.

However, ocean freight demand may have peaked since May Some freight forwarders have indicated that demand has indeed begun to wane, or perhaps that capacity additions from carriers are finally beginning to make an impact.

DSV has also noted that there are signs that demand has peaked. But it expects demand to continue at least through the third quarter.

Red Sea Crisis Disruption Extends Beyond the Region

Ten months after the first attack, attacks on ships and infrastructure continued within the Red Sea region in July, prompting U.N. Special Envoy to Yemen Hans Grundberg to tell the U.N. Security Council, "Recent developments suggest that the threat against international shipping is increasing in scope and precision."

In a separate statement, Maersk noted that disruption to its container shipping via the Red Sea had extended beyond trade routes between the Far East and Europe to its entire global network.

3rdwave: A Partner Who Can Help You Navigate and Mitigate Disruptions

As disruptions and uncertainty linger in the market, shippers are faced with longer ocean freight routes, a potential US East and Gulf Coast port strike and uncertainty surrounding the stability of Microsoft operating systems.

To ease the pain, 3rdwave offers a robust platform to help international shippers and BCOs manage transportation and trade compliance. To help them ease uncertainty and reduce any potential delays and added expenses associated with market disruptions, our products include:

• Automated Customs Management – Formalize and automate the translation of shipment data into “customs data” for perfect entries every time.
• Shipment Execution – Monitor shipments from origin to destination with integrated air and ocean visibility to gain real-time updates against your schedule.
• Inbound Management – Gain process control and product-level visibility with real-time alerts and integrated ocean vessel and terminal messages.
• Port Management – A control tower view of ongoing activities at the port: inbound, at the port, and outbound.

Don’t let disruptions and uncertainty get the best of you. To learn more about 3rdwave and our proprietary Shipment Execution Platform™, contact us for a demo.

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