Abstract
The global cargo shipping market size is projected to reach $4.2 trillion by 2031, growing at a CAGR of 7% from 2022 to 2031. Presently, the cargo shipping industry is dominated by Asia-Pacific and it is expected to maintain its dominance in the global market, particularly in China, South Korea, and Japan due to some distinct advantages. In recent years, Asia's supply chains have been evolving rapidly in response to several major trends, making them even more vulnerable to external shocks. As a result, one of the most pressing demands for logistics management to strengthen the supply chain is to have technologies in place to improve cargo visibility. Today's supply chain management teams must focus on achieving the agility needed to create resilient supply chains. Each uncertainty reveals to understand the weaknesses of a system and its ability for resilience. This book chapter covers the global and Asia's cargo industry, the major risks associated with the cargo supply chain and the adaptive strategies to manage the uncertain times.
TopSupply Chain Scenario In Asia
Asia's supply chains have been rapidly changing recently in response to a number of significant trends, which has increased their susceptibility to outside shocks. While the Covid-19 outbreak wreaked havoc on supply chains around the world, it also highlighted the industry’s fragmentation. “Four out of every ten containers (40 percent) missed their scheduled sailing,” according to the Maritime Executive, “while several important carriers and ports reported rollover rates of above 50 percent.” “Global shipping line schedule reliability has declined to 34.9 percent in January 2021,” according to the Global Liner Performance (GLP) report. As a result, one of the most pressing demands for logistics management to strengthen the supply chain is to have technologies in place to improve cargo visibility. While many markets and traders have changed, most of the ecosystem still relies on outdated processes that fail to provide real-time intelligence or precise location, resulting to even more turmoil.
It is impossible to completely eradicate risk. Risk can be understood and, to the greatest extent possible, measured. For larger businesses, many of which are global leaders, successful adaptation in a changing world requires long-term thinking and perspective on enterprise-specific risks and opportunities in a wide variety of nations and physical operational locations. Increasing visibility and establishing communication channels with partner companies are crucial for the supply chain.
Companies must evaluate risk and incorporate resilience into their operations for the sake of their survival. This de-risking should be a part of the worldwide effort to ensure the long-term health of the planet. Longer term supply chain resilience is enhanced by collaboratively developing adaptable strategies with all stakeholders. To increase resilience and sustainability as a whole, it is necessary to define and meet corporate sustainability targets, construct and upgrade both new and old infrastructure, and sign international agreements.
One of the major challenges faced by the Asia pacific cargo industry is about Protection and security of the goods. This book chapter covers identifying the major challenges faced by Asia pacific shipping industries and the possible improvement in protection and security.
Key Terms in this Chapter
Autonomous Shipping: Autonomous shipping refers to the use of advanced technologies, including artificial intelligence (AI), robotics, and automation, to enable ships to operate with minimal or no human intervention.
Supply Chain Risk: The possibility of a disruption in business operations due to the unavailability or unavailability of resources obtained from external sources is referred to as supply chain risk.
Black Swan: The Impact of the Highly Improbable,” black swan events are characterized by their unexpectedness, extreme rarity, and retrospective predictability.
Supply Chain Sustainability: A supply chain that protects people and the environment at every turn by using socially and ecologically responsible practices is considered sustainable.
Supply Chain Disruption: Any incident that interferes with the manufacture, marketing, or distribution of goods is considered a supply chain disruption.
Supply Chain Resilience: The ability of a supply chain to endure, adjust, or modify in the face of change is known as supply chain resilience.
Collaborative Supply Chain: A collaborative supply chain refers to a network of interconnected entities, including suppliers, manufacturers, distributors, retailers, and other partners, working together to optimize the flow of goods, information, and resources throughout the supply chain.
Supply Chain Deficit: A “supply chain deficit” refers to a deficiency or inadequacy within a supply chain network that hinders its effectiveness, efficiency, or resilience.
Supply Chain Fragmentation: A supply chain that is divided into several segments is said to as fragmented. When they split up, businesses distribute the production process among several manufacturers and suppliers.
Supply Chain Excellence: Open channels of communication and the formation of shared objectives among all major supply chain operations, including as purchasing, production, distribution, and sales, are referred to as supply chain excellence.