Future-Proofing Fastener Supply
Wednesday, 31 July 2024
The fastener industry has been suffering significant supply chain issues for the last few years. Previously, these issues were connected to logistics caused by the global pandemic which were then exacerbated in Europe when the full impact of Brexit hit. Now, the ongoing conflict in Ukraine is affecting the availability and cost of raw materials, while port congestion, labour strikes and capacity shortages push shipping rates to unprecedented levels.Â
Fastener shortages are a critical issue in the manufacturing sector, causing significant production delays and impacting overall efficiency. As fastener distributors at Harrison & Clough, it’s essential to understand the triggers of these shortages and implement strategic solutions to navigate these challenges effectively.Â
The Current Concern in Freight and LogisticsÂ
At present, the global shipping industry is experiencing a perfect storm of disruptions such as:
•   Port Congestion: With increasing diversions around the Cape of Good Hope (COGH) and bottlenecks at major ports, significant amounts of freight capacity are tied up. This has led to substantial delays and increased costs with over 2.5 million TEU reportedly waiting for berths at ports worldwide, equating to nearly 9% of the global fleet.
•   Rising Freight Rates: Spot rates have spiked dramatically, with indexes showing nearly a 500% increase compared to 2023. Freight rates from key routes, such as Shanghai to Rotterdam, have surged by 11%, while rates to Los Angeles and New York have seen similar spikes.
•   Labour Strikes: Strikes by port workers, notably in Germany and France, have further exacerbated the situation, causing additional delays and uncertainty in the supply chain.
•   Increasing Demand & Global Capacity Shortage: Despite the addition of over 1.6 million TEU of new vessel capacity this year, the market has fully absorbed these vessels, maintaining a global shortage. The increased demand, coupled with these new deliveries being diverted or delayed, has left the industry struggling to keep up.
Future-Proofing Fastener Supply
Despite this volatile environment, at Harrison & Clough we have been proactively managing our supply chain to mitigate risks against both current and future challenges. Here’s how we have been achieving this:Â
Market Analysis
We have been using data analytics to predict future trends in fastener demand and supply. This has allowed us to make informed decisions and stay ahead of potential shortages.
Strong Supplier Relationships
Having been in the industry for over 100 years, we have built strong relationships and reliable partnerships with our suppliers to help ensure a steady supply of fasteners.
Leveraging Technology
With the likes of AI and machine learning at our fingertips, we have jumped at the opportunity to explore and invest in new technology that can help improve inventory management and supply chain efficiency.Â
Employee Training and Development
Maintaining a skilled work force is crucial to navigating supply chain challenges. At H&C, we invest in regular training and development for our employees, right from our apprentices to senior members of our team, to ensure everyone is well-equipped to handle complex supply chain scenarios.Â
Looking Ahead
At Harrison & Clough, we maintain a holistic and strategic approach when confronting ongoing supply chain challenges. Our investment in new technology, employee training, supplier relationships and market analysis, has ensured that we stay resilient to both present and future disruption.Â
We are continuing to monitor all issues outlined here, while working closely with suppliers abroad to continue delivering quality fasteners to our customers.Â
If you would like to find out more about Harrison & Clough, click here.
Fastener shortages are a critical issue in the manufacturing sector, causing significant production delays and impacting overall efficiency. As fastener distributors at Harrison & Clough, it’s essential to understand the triggers of these shortages and implement strategic solutions to navigate these challenges effectively.Â
The Current Concern in Freight and LogisticsÂ
At present, the global shipping industry is experiencing a perfect storm of disruptions such as:
•   Port Congestion: With increasing diversions around the Cape of Good Hope (COGH) and bottlenecks at major ports, significant amounts of freight capacity are tied up. This has led to substantial delays and increased costs with over 2.5 million TEU reportedly waiting for berths at ports worldwide, equating to nearly 9% of the global fleet.
•   Rising Freight Rates: Spot rates have spiked dramatically, with indexes showing nearly a 500% increase compared to 2023. Freight rates from key routes, such as Shanghai to Rotterdam, have surged by 11%, while rates to Los Angeles and New York have seen similar spikes.
•   Labour Strikes: Strikes by port workers, notably in Germany and France, have further exacerbated the situation, causing additional delays and uncertainty in the supply chain.
•   Increasing Demand & Global Capacity Shortage: Despite the addition of over 1.6 million TEU of new vessel capacity this year, the market has fully absorbed these vessels, maintaining a global shortage. The increased demand, coupled with these new deliveries being diverted or delayed, has left the industry struggling to keep up.
Future-Proofing Fastener Supply
Despite this volatile environment, at Harrison & Clough we have been proactively managing our supply chain to mitigate risks against both current and future challenges. Here’s how we have been achieving this:Â
Market Analysis
We have been using data analytics to predict future trends in fastener demand and supply. This has allowed us to make informed decisions and stay ahead of potential shortages.
Strong Supplier Relationships
Having been in the industry for over 100 years, we have built strong relationships and reliable partnerships with our suppliers to help ensure a steady supply of fasteners.
Leveraging Technology
With the likes of AI and machine learning at our fingertips, we have jumped at the opportunity to explore and invest in new technology that can help improve inventory management and supply chain efficiency.Â
Employee Training and Development
Maintaining a skilled work force is crucial to navigating supply chain challenges. At H&C, we invest in regular training and development for our employees, right from our apprentices to senior members of our team, to ensure everyone is well-equipped to handle complex supply chain scenarios.Â
Looking Ahead
At Harrison & Clough, we maintain a holistic and strategic approach when confronting ongoing supply chain challenges. Our investment in new technology, employee training, supplier relationships and market analysis, has ensured that we stay resilient to both present and future disruption.Â
We are continuing to monitor all issues outlined here, while working closely with suppliers abroad to continue delivering quality fasteners to our customers.Â
If you would like to find out more about Harrison & Clough, click here.