Coca-Cola has turned to using bulk shipping vessels amid the current shipping crisis. The company chose carriers that were used to transport loose goods like coal, grain, and similar raw materials. The reason for the move was the dearth of adequate cargo space and enough shipping containers required for the transportation.
Alan Smith, Coca-Cola’s procurement director (global logistics), published a post on LinkedIn that said that the company is using three such ships to transport its manufacturing materials. Per comments on Smith’s social media post, Coca-Cola is also attempting to avoid the major ports to prevent delays.
The company is capitalizing on coordination when it comes to planning and operations for loading and unloading activities.
Owing to shortages resulting in delayed shipping, and in some cases halting it completely, companies were compelled to get creative with the transportation of materials and goods. Retailers like Target and Costco have chartered their cargo ships, coming up with unique solutions to combat the issues. However, there are still reports of mass delays at ports due to the ongoing labor crisis and the rising number of ships now coming back to the ocean.
Many social media users have said that it is abnormal for a multinational beverage major like Coca-Cola to make such a decision.
In September, Coca-Cola’s New York distributor mentioned having a hard time recruiting truckers, disrupting the supply chain. Other products like paper, toilet paper, Nike sneakers, chips used in computers, and several kinds of plastic goods are also short in supply as manufacturers are trying to meet demands amid delays.