International 20-01-2022 Hits: 1476

ICAC: What in the World Is Going On with Global Logistics in Cotton?

International 20-01-2022 Hits: 1476

Cotton

International 20-01-2022 Hits: 1476

20 January 2022, Mumbai:

About the International Cotton Advisory Committee (ICAC)
Formed in 1939, the ICAC is an association of cotton producing, consuming and trading countries.

It acts as a catalyst for change by helping member countries maintain a healthy world cotton economy; provides transparency to the world cotton market by serving as a clearinghouse for technical information on cotton production, and serves as a forum for discussing cotton issues of international significance.

The ICAC does not have a role in setting market prices or in intervening in market mechanisms.

Executive Summary
Highlights from the current issue of the ‘Review’ include:

Five articles focussing on shipping and logistics in different parts of the world
The regions covered are Australia, Brazil, India, Taiwan, and the United States
The challenges are affecting all areas: ports, shipping, warehousing and trucking
However, while the problems are daunting and still piling up, stakeholders across the globe are using this time to reevaluate their operations and upgrade them so they're better prepared for the next disaster

‘Review’ Articles Ask: What in the World Is Going On with Global Logistics in Cotton?

No sector of the cotton & textile supply chain went through more chaos over the past two years than shipping and logistics, which continue to be plagued by a host of issues including:

Delays at ports, where ships are often parked offshore for days or weeks before they can be unloaded,
Lack of space at port warehouses,
Lack of truckers to pick up goods and carry them inland,
Lack of available containers, and
Wild and expensive swings in freight rates.

To make matters worse, any type of scheduling delay can cause a cascade of new problems further downstream, making uncertainty the only given in today's supply chain.

There are, however, some positives that are expected to emerge from this global shipping mess.

For example, the Australian government is reviewing the entire country's maritime shipping and logistics systems to remove bottlenecks and increase technology adoption.

In India, e-invoicing and the goods and services tax have streamlined interior logistics, while businesses in the United States are reconsidering just-in-time inventory and looking for new incentives for shippers, truckers and port workers to ensure the labour is available when it's needed.

With new virus variants still emerging and global logistics challenges still mounting, no one is quite sure when things will get back to normal — or even what normal will look like when the pandemic is over.

But as one of the authors concluded, all stakeholders in the cotton supply chain should be using this time to evaluate their processes and operations so they will be better prepared the next time disaster strikes.

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