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Home : Operations : Five Strategies to Avoid Port Congestion

Five Strategies to Avoid Port Congestion

Your supply chain doesn't have to slow down just because it's peak season if you follow these tips.

By David Blanchard

Oct. 1, 2007

October is traditionally the busiest month of the year when it comes to traffic at the major U.S. container ports, and this year looks to be a record-breaker, according to Paul Bingham, economist with market analyst firm Global Insight. Activity could be up as much as 4% in October.

While the physical limitations of port and transportation infrastructure are beyond a manufacturer's control, there are some tactics companies can take to ensure their goods flow smoothly from point to point. Arnie Bornstein, executive director of marketing and corporate communications with BDP International, a global logistics services provider, offers these suggestions for shipping products into and out of the United States.

Cargo Redistribution

Companies can achieve better supply balance by negotiating with various ocean carriers that have relationships with terminal operators in multiple ports, Bornstein notes. "This can provide viable options for your inbound and outbound supply chains without significantly impacting your costs."

Transportation Demand Planning

"Profile your company's global carriage activity across various trade lanes and strategic business units to reduce duplication and inefficiency," he says. "Longer transit times between points of origin and destinations can be more successfully navigated by forecasting your demand and proper pre-planning. Build these profiles into transportation procurement and contracting processes."

Virtual Warehousing

Strategically managing your inventory (also known as inventory-in-motion) by monitoring supply and demand during inland transit at the origin or destination can yield greater flexibility, Bornstein observes.

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