E2open Reports Increased Ocean Shipping Times Amid Supply Chain Disruptions and Challenges
- E2open's Ocean Shipping Index reports ocean shipment times rose to an average of 68 days in Q4 2024.
- The increase is attributed to economic headwinds, geopolitical tensions, port congestion, and labor unrest affecting shipping routes.
- Companies must leverage E2open's data insights to enhance resilience and navigate the complexities of global supply chains.
E2open Unveils Rising Ocean Shipping Times Amid Global Supply Chain Challenges
E2open Parent Holdings, Inc., a prominent player in the connected supply chain Software as a Service (SaaS) sector, has published its latest Ocean Shipping Index, revealing a concerning trend in global shipping times. For the fourth quarter of 2024, the average duration for ocean shipments has escalated to 68 days, an increase of eight days compared to the same period in 2023. This rise is largely a consequence of extended transit times and the ongoing volatility impacting the ocean freight sector. The index, which relies on data from over 480,000 connected enterprises within E2open’s extensive network, sheds light on the complexities and challenges currently facing shippers.
Chief Strategy Officer Pawan Joshi points to several contributing factors for this rise, including economic headwinds, geopolitical tensions, and the unpredictability of trade routes. He emphasizes that these elements have culminated in unprecedented disruptions, notably exacerbated by port congestion and labor unrest. In particular, routes from South America to North America have experienced the starkest increase of 19 days, primarily due to prolonged booking processes and transit delays. Similarly, the Asia to Europe route has seen an uptick of 12 days, while shipments from Europe to Asia averaged 83 days, reflecting an 11-day increase year-over-year. As the Lunar New Year approaches, the report warns that these issues may worsen, further straining supply chains.
The findings from E2open's Ocean Shipping Index highlight the pressing need for companies to prioritize resilience and agility in their operational strategies. As shipping durations escalate and common routes become increasingly volatile, businesses must adapt to mitigate disruptions and optimize their supply chain processes. By leveraging data-driven insights from E2open’s platform, shippers can make informed decisions to enhance their operational efficiency and navigate the complexities of the current global shipping landscape.
In addition to the rising shipping times, the report identifies the potential impact of new U.S. tariffs, which could further complicate the already fragile ocean freight environment. Companies that can effectively manage these challenges through strategic planning and adaptability are likely to emerge stronger in the face of such adversity. The Ocean Shipping Index serves not only as a benchmark but also as a critical tool for shippers to proactively respond to the fluctuating landscape of global trade.
