SUMMER 2023

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THE DISTRIBUTOR’S LINK
Chris Donnell
Chris Donnell is the National Sales Director for Scanwell Logistics International (CHI)
Inc., specializing in Supply Chain Management, Inventory Control, Logistics Sales and
Management. Chris excels at selling the “Solution” to advanced program analysis and
implementation. A highly ambitious and effective team leader who thrives on the challenges
of this industry, Chris currently oversees a National Sales and Partnership Program consisting
of more than 100 Sales executives who focus primarily on SCM and Logistics development in
most vertical markets. Contact Chris at 847-228-6789 or email: chrisdonnell@scanwell.com.
WE’RE BACK?
The world of logistics and supply chain management
has certainly calmed down over the past year. It’s crazy
to think but this time last year we were all trotting
through massive manufacturing and service-related
disruptions. Everyone was fearful of a potential west
coast port strike, inflation was climbing at record levels,
and ocean rates started to take a tumble due to poor
import volumes from the Pacific Rim.
Rather than rehash what we all went through during
the pandemic, I wanted to review the past 6 months of
2023 and provide you with some insight into what we
expect to happen over the next 6 months.
Overall, the past 6 months have been relatively
calm. Most service-related disruptions have subsided
and congestion on the west coast has been eliminated.
Rates have plummeted to near pre-pandemic levels and
importers now have a more consistent data set from
which to effectively manage their supply chain. Between
the months of January and June, we saw ocean rates
drop almost 70% year over year. We saw dwell time at
the ports and most rail depots fall by more than 85%
and overall carrier on-time performance rebound, albeit
still taking into account their stance on “Blank Sailings”.
So, what changed? How did a market which was ravaged
for more than three years do an about-face within a few
short months to return to a more manageable time?
One reason (and I think I might have had a small
CONTRIBUTOR ARTICLE
part in this) is because importers and exporters became
more aware of their supply chains and were able to
bypass some of the existing disruptions and roadblocks.
Supply chains became more resilient. Everyone started
to really focus on exiting troublesome areas and adapted
to the market resulting in the growth of quantifiable
data. As an example, a year ago everyone was talking
about the potential port strike between the ILWU and
PMA; there was also talk about the rail situation and
their union members looking to walk out; and what did
importers and exporters do? They simply made subtle
changes to their supply chain, re-routed cargo to avoid
any potential issues, and followed the data. Instead of
being reactive, we as an industry became proactive.
Thankfully, for the most part, both crisis’ were avoided.
Another reason the market changed so quickly was
due to inflation. Make no mistake about it, this has
made a lasting impact on the global trade market and
there isn’t a country on the face of the earth that hasn’t
been impacted in one way or another by the US market.
For the first six months of 2023 purchasing fell off a cliff,
we saw decreases in global trade fall some 55% overall,
none more surprising than the 47% from China to
North America. Consumer spending plummeted, causing
inventories to skyrocket nationwide. In short, we went
from one extreme to another in a matter of less than a
year.
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