E2open’s Ocean Shipping Index Reveals 70-Day Average To Ship Freight Globally
E2open Parent Holdings, Inc., a leading network-based provider of a mission-critical, cloud-based, end-to-end supply chain management platform, today released a new quarterly report that tracks ocean shipment delivery times from booking freight to receipt of goods, across major trade lanes between Asia, North America and Europe to help importers mitigate risk and make better decisions on when to book cargo.
Based on information from E2open’s business network, which encompasses 26% of all global ocean bookings and has visibility into more than 40% of international container trade, the E2open Ocean Shipping Index provides a data-driven reference for shippers to understand how long it takes to move goods internationally as well as the factors that contribute to observed delays.
Key findings from the Ocean Shipping Index include:
- The North America to Asia line lead times increased 12% during this quarter compared to last quarter, indicating a return to product output in North America or surge from backlog
- The port dwell time at the Asia port averaged 5 days in September, down 9% since the same quarter last year
- The lead times from Asia to Europe increased 31% during this quarter compared to last quarter
- Overall lead times from North America to Asia took 87 days longer than from Asia to North America, or 25% longer
“Ocean transportation is the backbone for world’s largest supply chains and critical to the flow of goods that power global economies,” said Pawan Joshi, executive vice president of products and strategy at E2open. “Successful operations require an accurate understanding of how long it takes to ship freight, especially for just-in-time supply chains. Detailed understanding of the time required for containers to arrive at the port, clear customs and be ready for pick up by ground carriers is the key to streamlining port operations and decongesting logistics operations. Transportation volatility – driven by high demand, container shortages and port congestion – has made historical lead times unreliable, increasing the risks of disruption in downstream production and customer service. Among other things, this quarterly index provides a new level of visibility so that shippers can better understand when to book capacity for goods to arrive at the required date.”
The Ocean Shipping Index adds to a growing list of benchmark reports available from E2open to help the industry navigate the increasingly complex global supply chain, including the annual Forecasting and Inventory Benchmark Study, monthly Freight Market Index and dynamic Freight Rate Index.