An average of 30 container ships have sat anchored daily just off the coast of Los Angeles this year. Under normal circumstances, the number of container ships at anchor would be zero, or possibly one – but the abnormal and uncharted circumstances brought on by COVID-19 have caused a significant ripple effect in supply chain and logistics workings across the globe. As consumer demands continue to soar and current global shipping rates continue to climb at an average of four times higher than January 2020, U.S. ports and domestic facilities are grappling with less efficient goods-movement, navigating an influx in inbound cargo while attempting to bolster a workforce impacted by employee outages due to COVID-19. One national carrier, for example, recently reported a 14% increase in average shipment counts, while illness and exposures continue to cause a significant reduction in staffing. Meanwhile, overseas manufacturing is beginning to ramp up once more, container shortages abound, border restrictions are loosening and airline labor furloughs continue, meaning that the most difficult time in transportation may now be upon us.

Thankfully, the logistics team at HSM is hard at work helping to enable product availability, mitigate risks, offset higher shipping rates and ensure a smooth supply chain even during these trying times. Jon Thomas, HSM Director of Logistics, underscores HSM’s obligation to provide our customers with best-in-class service and support. “HSM holds ourselves accountable to the highest standard in logistics,” said Jon. “We do this by partnering with qualified freight suppliers, warehouses and installers that share our vision for quality of service and success.”

Specifically, HSM is collaborating with suppliers to enhance forecasting and stock levels based on evolving demand, while working with internal manufacturers to anticipate longer lead times, offsetting manufacturing and transportation delays. We are also closely monitoring potential product shortages in categories ranging from appliances and in-room accessories to textiles and chemicals, recommending alternative products or stand-in suppliers as need be to mitigate the risk of stock outages. To help bypass backlogs in overseas shipping and ground transportation, HSM’s logistics team is also partnering with suppliers to ensure that containers arrive at the closest port to a shipment’s final destination. Though this may slightly increase shipping time in some cases, strategic rerouting reduces the risk of product damage by decreasing travel time on the road, and the associated cost savings are significant. Choosing HSM as a procurement partner will connect you directly to our expansive strategic sourcing initiatives firmly in place, which allow our customers to choose from a host of approved domestic or international suppliers best suiting the individual needs of each property.

To increase your product shortage safeguards and protect your property from skyrocketing shipping costs, join forces with HSM and leverage our reach as a global procurement powerhouse. Let us focus on solving the logistical challenges so you can focus on providing a worry-free experience for your guests.

Published: June 01, 2021

Category: Logistics