Scribd
Upload
85 views6 pages

Landscape Assignment 1

This document discusses several critical issues in international logistics and supply chains: 1) Port congestion can cause shipping delays, disrupt supply chains, and strain infrastructure as ports reach maximum capacity. 2) Inflation across supply chains can occur due to imbalances in supply and demand, leading to higher prices for goods and services. 3) Air freight costs increased in 2020 as passenger flight traffic declined, carrying fewer cargo shipments.

Uploaded by

megattheonenonleh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
85 views6 pages

Landscape Assignment 1

This document discusses several critical issues in international logistics and supply chains: 1) Port congestion can cause shipping delays, disrupt supply chains, and strain infrastructure as ports reach maximum capacity. 2) Inflation across supply chains can occur due to imbalances in supply and demand, leading to higher prices for goods and services. 3) Air freight costs increased in 2020 as passenger flight traffic declined, carrying fewer cargo shipments.

Uploaded by

megattheonenonleh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

THE CRITICAL

ISSUES IN
INTERNATIONAL
LOGISTICS AND
SUPPLY CHAIN
INTERNATIONAL TRANSPORTATION AND TRADE
FACILITATION(TPT551)
PREPARED FOR :DR EMI NORMALINA BINTI OMAR
STUDENT:MEGAT MUZMAQELHAZMI BIN MEGAT MUZAMAIL
STUDENT ID:2022753059
GROUP:BA2474A
The interruptions or inefficiencies in
ISSUES RELATED TO LOGISTICS AND
SUPPLY CHAIN CAN BE DEFINED:
the sequence of procedures
involved in the production and
distribution of materials.

Port Congestion
Example:
Congestion happens when a ship arrives at a port According to Hong Leong Investment Bank (HLIB)
but is unable to load (or unload) its cargo because Research, Westports anticipates the supply chain
the station/port is already full. disruption to last at least one to two years, as some
countries may still enforce lockdowns if cases
resurface. Westports earlier stated that
October(2021)volume is currently tracking the same
Effects of port congestion includes: as third quarter (Q3) volume, with a 10% year-on-
Shipping Delays year reduction. The current yard utilization at
Westports is 95-99 percent, causing a bottleneck at
Disrupt in the Supply Chain the port. ( Farah Adilla - November 1, 2021)
Strain in infrastructure
Based on a conduct research on the Maritime
Number of vessel Traffic Density on Port Klang, the statistics
clearly shows the heavy traffic that Port Klang
Vessel availability and reliability are has to adapt.
critical in ensuring the supply chain
operates smoothly. When there is a
vessel shortages, delays increase,
capacity limits occur, and
transportation prices rise. These
difficulties, in turn, have a direct
impact on the overall efficiency of
the logistics and distribution
processes, causing disruptions that
can reverberate across the entire
supply chain ecosystem.
This general price increase reduces

Supply chain people's purchasing power: for the same


amount of money, you get fewer goods
Inflation and services. This led to demand
fluctuation.
Inflation is a phenomena
that occurs due to an
imbalance in supply and
demand, which results in a
general increase in the price
of goods and services over a
specific time period. .
Because of the decrease in air passenger
traffic (passenger flights frequently carry
cargo), air freight costs began to rise in
2020. It peaked near US$13/kg on the
Hong Kong-North America route by the
end of 2021 before falling back to the
current US$8/kg when passenger flight
traffic increased.
Because of the decrease in air passenger traffic (passenger flights
frequently carry cargo), air freight costs began to rise in 2020. It peaked
near US$13/kg on the Hong Kong-North America route by the end of 2021
before falling back to the current US$8/kg when passenger flight traffic
increased.
References
https://www.nst.com.my/business/2021/11/741639/westports-port-congestion-not-
easing-says-hlib

https://www.mecalux.com/blog/supply-chain-inflation#how-does-inflation-affect-
the-supply-chain
https://www.economicsobservatory.com/what-is-supply-chain-inflation-and-why-is-
it-driving-up-consumer-prices-now

https://www.researchgate.net/publication/311881903_Marine_Traffic_Density_Over_
Port_Klang_Malaysia_Using_Statistical_Analysis_of_AIS_Data_A_Preliminary_Study

https://www.supplychainconnect.com/supply-chain-
technology/article/21160862/port-congestion-continues-to-throttle-the-worlds-
supply-chains

You might also like