b'FEBRUARY 14 - MARCH 13, 2022NORTH AMERICAS TRANSPORTATION & LOGISTICS NEWSPAPER 33ACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1Jensen warns Russia-UkraineONE SHIPconflict might generateONE SHIPcyberattacks on portsC ontainers, RORO, RORO, Br, Breakbulk Ceakbulk CarargogoContainersBy Stas Margonanis, AJOTContainershippingana- zero, literally zero buffer. There lyst Lars Jensen, the principalare no more ships to be had. atCopenhagen-basedVes- There are no more containers to pucciMaritimeConsulting,be had. Ports are chockablock warned that tensions betweenfull. We are short on trucks and Russia and the Ukraine couldrail and chassis. Which means spill out into cyberattacks onthat the impact of a successful critical infrastructure, includ- cyberattackoneitheraship-ing ports. pinglineorevenworseon Jensenwarnedtheele- one or more ports or terminals mentofriskhasrisendras- would be very severe. RORO Customer ServiceA SERVICE AL1 SERVICE AL2 SERVICEticallyinthelastweeks.IA port or terminal couldCuto Friday Cuto Thursday Cuto Monday 877-918-7676cannot stress enough how seri- beshutdownforatleastFROM NEW YORK LOLO RORO LOLO LOLO Export Customer Serviceously this should be taken. several days: If you have aTO Transit Time Transit Time Transit Time Transit Time 800-225-1235Export Documentation Jensenwasaddressingterminal with very good pro- ANTWERP 1620 18888-802-0401the Propeller Club of North- cedures,youmightbebackDUBLIN 12Import Customer ServiceBELFAST 13 ernCalifornia(PCNC)oninoperationinthreeorfourGTEBORG 21888-802-0403February 8th. orfivedays.ButimagineaHAMBURG 13 17 15 22 LogisticsRecalling the 2017 cyber- whole port being at a standstillLE HAVRE17 866-821-7449Credit & Collectionsattackthatshutdownthefor three or four or five days? LIVERPOOL 9 13 888-225-7747LONDON GATEWAY20 19ocean carrier Maersk, JensenJensensaidthatwhileROTTERDAM11 20said: Remember that in 2017investingintechnologyis Maerskwasbroughtdownimportanttothwartcyberat-by a cyberattack. They weretacks,themostsuccessful(WINGScontinued from completely down for a week,companiesemphasizebestpage 14)andittookseveralweekspractices as part of the culturesetting off demand cycle that to get back up and running.within the organization. Also,can be out of sync with deliv-Maersk was purely collateralthe need for constant trainingery cycle of the supply chain.damage of a Russian-backedis critical to a sound response.cyberattackontheUkraine.In other news, Jensen notedR ebaLanCing TheSeveralthousandcompaniesthe following 2021 events: M aChine ?got hit on that attack.Closure of two major Chi- Part of the problem with neseportsduetoCOVIDthesupplychainisthatit infectionsisweightedheavilyontheTrans-Pacific carrier transitinbound side from Asia, par-times went from 45 days toticularly China. The machine 110 days. The result was thatisinherentlyoutofkilter. atthePortsofLos AngelesThisimbalancemeansthat andLongBeachtherehavethesupplychainisreally beenover100vesselswait- designedaroundtheleg ing to unload at container ter- fromAsiaratherthanasa minalsandtherehavebeenbalancedmechanism.(See Lars Jensen now only slight decreasesUS trade figures) The situa-Today the risk of damageGlobally,reliabilityoftion is further aggravated by could be far worse: Fast for- vesselarrivalsdeclinedtothe nature of the tradethe wardtothesituationright33%andaveragevesselexportrawmaterialsareof now with Russia on one sidedelays exceeded seven dayslower value and have a much andNATOandtheUkraineTrans-PacificandAsia/ lesscomplexsupplychain on the other In the last fewEuropespotcontainerratesthan the consumer manufac-weeks, authorities in Britain,exceeded$20,000perFEUtured goods coming in on the Canada and the United States(forty-footunitcontainer);inbound side.have warned that this is a sig- while these rates might haveThus, it is natural a pre-nificantriskagainstcriticalbeen the exception, they stillponderousoftheworlds infrastructure. So, this threatindicated a sizeable spike inlargest ports and terminals lie has to be taken very seriously.rates from pre COVID levelsin China and Southeast AsiaTheconceptofaJust-in- tobuildorbuywarehous-U.K. authorities are reportingContainercarriersarerather than other regions. Time supply chain with theing(andcurrentlythereis cyber activities that are veryreportingprofitsofbetweenAsoneportexecutiveemphasisonvelocityisnotamassiverunofpurchas-similar to those that precededUS$150to$US200billionsaidofthesituation,theirequippedtohandledisrup- ingwarehousespaceinthe the cyberattacks of 2017. and have been investing their[Asian-based terminals] berthtionsasverylittleredun- U.S.)thantoworryabout Jensenrecalledthattheprofitsinareassuchasinthroughputisjustsomuchdancy is built into the system.velocity. There is also a shift impact ofthe2017cyberat- warehousinghigher than oursand that isThe imbalance in trade leadstowards alternative sourcing tack was not very damaging:Congestionproblemsrosewhat happened in August, theytoinventoryproblems,evenunderwaytowardsSouth-Ifwethinkbackto2017,at European and North Amer- justhaveoutproduceditswhenthesupplychainiseast Asian nations like Viet-the impact was actually quiteicanterminalsbutdeclined.just a much bigger machine.working well.nam and Indonesia and other small. Sure, it was large forfor the most part, at East AsiaAnd the machine is get- There are well-documentedregionslikeLatin America, Maersk.Maersklosthun- terminals in 2021tingbigger.Theshipsareregulatory efforts afoot in theawayfromChina.Thereis dreds of millions of dollars,In looking at 2022, Jensenbigger,nowhitting20,000U.S.andothercountriestoalso a new impetus to reshore butfortheoverallglobalidentified the following prob- plusTEUs.Eventheall- ensurethesupplychainornearshorecriticalindus-supply chain the impact waslems: waterTrans-Pacificsched- functionsalongmoreequi- tries(likesemiconductor small.Buttheimpactwas Freight rates will stabilize atulestotheU.S.EastCoasttablelines.Whethertheseproduction) back to the U.S. that it wiped out the worldslevels much higher than pre- are served by 12,000-14,000legislative efforts help is dif- And certainly, the emphasis largest carrier for more than apandemic.TEUvessels.In2021itisficulttosay,aseconomicsondigitalizationandvis-week. The reason the impact Traffic jams at U.S. ports,estimatedthat827millionlikewatertendstoseekitsibility in the supply chain is totheglobalsupplychainparticularlyatLos Angeles/TEUs were shuttled throughown level. also part of the retooling to was minimal was because weLong Beach will continue forglobalsupplychains,upMcKinsey&Companyhandle an increasingly com-had plenty of buffer capacitythe next 89 months.overthe775millionTEUsinarecentstudyentitledplex supply chain. in terms of ships and contain-The risk of disruption due tohandledin2020.Itisfore- How COVID 19 is reshap- WithorwithoutCOV-ers and terminal capacity. COVID shutdowns in Chinacast that this total rises to 945ing Supply Chains observedIDsimportuneimpacts,the Todays overstressed supplyis high.million TEUs by 2024onlyof the imbalance issue: Itsquestion is how well will all chaincouldmaketheimpact There is a risk of U.S. Westtwo years away.quicker to build inventoriesthesesolutionsworkwitha of cyberattack far worse: Fast(BENEFITScontinued onButthesupplychainisthanfactories.Theycouldfloodof945millionTEUs forward now to 2022. We havepage 34) designed to be a lean machine.have added that is also easierjust around the corner?'