Most supply chain managers have limited visibility into which of their first-tier suppliers have risks and exposures arising from second and third-tier suppliers. Essentially, they do not know who supplies their Tier 1 suppliers.
Location analytics can identify unknown hidden participants or nodes in supply chains, thus helping to minimize and better control the risks of disruption.
Big Data is transforming the way leaders manage supply chains across all touch points, from manufacturing and provisioning to logistics and customer service.
What is Big Data applied to supply chain?
The application of Big Data for supply chain sustainability is the application of high-level intelligence derived from an organization’s data analytics of its operational processes, from procurement and processing to inventory management, distribution, etc., providing a basis for automation efforts and continuous improvement of logistics operations. Read the complete article here
In Guatemala, according to the air transport union, the project of the new cargo airport to be developed in the Port of San Jose, Escuintla, is unfeasible in operational and commercial terms.
Salvadoran carriers estimate that between January and May 2021, the cost of freight between El Salvador and Guatemala has increased from $500 to $548, a rise that is largely explained by the increase in the price of diesel.
Representatives of the Asociacion Salvadorena de Transportistas Internacionales de Carga (ASTIC) state that in recent months the price of a gallon of diesel has increased by $0.63 in the central zone.
The protests in Costa Rica, which affect vehicle circulation in the country and border crossings, will have a short-term impact on intraregional trade and cargo transport costs.
In order to access the $1.75 billion credit that it intends to request from the International Monetary Fund (IMF), the Costa Rican government proposed to tax financial transactions, raise the tax on the profits of companies and individuals, and increase the tax on real estate.
After the difficulties generated by the restrictions imposed by Costa Rica on the entry of cargo from neighboring countries were overcome, the Costa Rican pilots denounce that the authorities of the region, far from applying reciprocal measures, have established "repressive measures."
Between May 18 and June 1, 2020, the free transit of goods in Central America was interrupted.
Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.
As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.
Although the region's markets are not yet facing a scenario of shortage of raw materials or products, the restrictions imposed on freight transport are destroying the regional logistics chain.
Since mid-July, the main companies transporting maritime cargo from the Port of Santa Tomas in Guatemala stopped operating the direct route to Europe, which will raise between 20% and 25% the costs of imports and exports.
After six decades of keeping the direct route to European ports in operation, the main shipping companies departing from Puerto Santo Tomás de Castilla in Izabal such as Maersk, Hamburg Sud, MSC, CMA-CGM, Hapas Lloyd and Sea Trade, decided not to re-operate the route concerned, leaving only one company with a multipurpose transport ship as an option to move cargo to Europe.
In Nicaragua, the guild of transporters reports that in the customs of the country is reviewed 40% of cargo trucks, a situation causing delays because the international standard is to inspect a maximum of 10% of units.
Managers of the Association of Nicaraguan Transporters (ATN) reported that since the beginning of the political and social crisis in the country in April 2018, the time for a truck to enter Nicaraguan borders has increased and carriers can spend up to a day.
Transporting one metric ton of goods in Central America is estimated to cost $0.17 per kilometer, while in developed countries the cost is around $0.10 per kilometer.
Transporting cargo more efficiently remains the greatest challenge that the countries of the region face to improve their competitiveness. According to data estimated by the United Nations and validated by the Economic Commission for Latin America and the Caribbean, currently the costs that companies incur to transport cargo in Central America are up to 40% higher than the costs assumed in some developed markets.
Increased cargo traffic, improving the availability of water for the passage of ships and construction of the rolling cargo port, are some of the challenges the authorities of the interoceanic route face for the coming years.
Representatives from the Panama Canal Authority reported that the levels of traffic currently being reported have already reached the figures expected to be reached in 2020.
Guatemalan business leaders have denounced the fact that due to the crisis in Nicaragua that is now affecting the region, the cost of transporting goods by sea has increased between 30% and 40%.
Representatives from the Chamber of Industry in Guatemala (CIG) and the Guatemalan Chamber of Food and Beverages (CGAB), reported that due to the Nicaraguan crisis which started in mid-April and has deepened with every week that has passed, entrepreneurs have reported increases in their transportation costs caused by the difficulty of traveling through the territory under conflict.
I Panama companies warn that container traffic will drop if the implementation of the new tariffs for food import inspections are not stopped.
The Business Council Logistics (Coel) is concerned that if the new tariffs do come into force of on July 3, "... the window will open for other state institutions to suggest similar increases, putting at risk the second most important sector of the Panamanian economy after the Panama Canal. "
The main problem reported is the lack of dredging, which has even led to decreased cargo loads so that ships do not end up touching the seabed.
The last dredging operation was carried out in 2009, and the volume of sediment accumulated since then has been estimated at 120 thousand cubic meters.
An article on Crhoy.com reports that "... other than the lack of a dredging plan, shippers are complaining about the lack of equipment in the limonenses ports, which has forced ships to spend more time on the docks and there are delays. "