This article is provided by BRC Associate Member, Peel Ports.
__________________________
Cargo owners need no reminding of how volatile today’s marketplace is: the triple threat of cutting costs, reducing carbon and overcoming congestion have created an increasingly complex operating environment.
These challenges – persistently high costs, pressure to make progress on environmental targets, and congestion at major transport hubs – could lead to a re-evaluation of traditional supply chain strategies. And all while customer expectations continue to evolve.
But perhaps a forced strategy rethink actually presents a big opportunity – to create smarter, more resilient and agile supply chains.
The challenges cargo owners are contending with today did exist a decade ago, so they are not new. But did they exist to the same extent, and with the same level of interdependency? That’s the real question, and we would argue that isolated challenges around port congestion, container imbalances, and unpredictable transit times aren’t individual hurdles to overcome anymore. They are the norm, in themselves and in combination.
Global supply chains, once a model of just-in-time efficiency, are now constantly tested by disruption, with little room for error. And sustainability is now non-negotiable for regulators, investors, and consumers alike, yet balancing carbon reduction with profitability and service reliability is still a tall order.
Some cargo owners rethinking the movement of their goods are looking at a wider range of options and how best to use them together. Coastal shipping, inland waterways and rail are just some of the modes being looked at more closely.
Alongside that, there needs to be a focus on one particularly underutilised lever: regional ports. Used strategically, they are more than just an alternative route. In many cases, they are less congested and more flexible than their larger counterparts. This means they can offer faster turnaround times, lower demurrage costs, and more direct connections to inland markets, while absorbing overflow from congested hubs.
Using regional ports can help cargo owners de-risk their supply chains, reduce travel distances and improve reliability of service. And in many cases, these ports are investing in infrastructure, digitalisation and greener operations.
So by partnering with them, cargo owners can align their sustainability goals with operational performance.
Traditional logistics models naturally prioritise cost above all else. But in today’s market, the nature of those costs – how they arise and can be mitigated – must be considered and finely balanced.
Such supply chain optimisation doesn’t have to be radical. A series of smart, incremental decisions – such as using more efficient routing, better data analysis and making full use of underutilised capacity in less congested regional ports – could be transformative, benefiting cargo owners and their customers alike.
Given the direct impact of supply chain performance on business success, cargo owners can no longer afford to be passive observers. Proactive engagement, and the pursuit of innovative optimisation strategies, have become strategic imperatives – critical not just for efficiency, but for building resilient, future-ready operations that can withstand disruption and drive long-term growth.
