Port congestion and capacity matters are a challenge for companies involved in the maritime and logistics field; however, these issues can be overcome with effective strategies as mentioned below.
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Causes of congestion in ports
Expanding trade volumes and increasing cargo are a key reason for port congestion. Other significant causes include limited cargo berths, insufficient facilities for storage and antiquated equipment. Bottlenecks and delays at ports caused by ineffective operations and regulatory and customs issues are also reasons for congestion.
The importance of supply chain management
The consequences of congestion in ports include delays and prolonged transit times, increased costs and dissatisfaction of customers. However, these problems can be mitigated through prudent supply chain management. An example of a logistics company in Sri Lanka that is involved in effective supply chain management is McLarens Group which leverages cutting-edge technologies and offers end-to-end integrated logistics services.
Capacity management strategies
For effectual capacity management there has to be clear communication as well as collaboration amongst the port management, shipping lines, logistics providers and terminal operators. Further, there must be adequate investment in infrastructure, implementation of sophisticated terminal operating systems, effective trade facilitation and diversification into alternative transportation modes.
Other effective solutions
In order to minimize the consequences of port congestion, precise demand forecasting as well as efficient inventory management processes are vital. Further, it is important to forge effective relationships with business partners so that alternative sources of transport are available. Finally, the consolidation and optimization of shipments, in addition to employing technologies for real-time tracking as well as visibility of cargoes, would be helpful.
