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Forwarder seeks to quell pre-Christmas panic

[ September 24, 2024   //   ]

Aramex regional CEO for the UK and Europe Umar Butt has called for calm among retailers rushing to bring forward their Christmas plans due to shipping disruptions in the Middle East.

Reconfigurations to regular service due to attacks in the Red Sea by Houthis rebels have caused an uncomfortable ripple effect across retail supply chains, leading to increased shipping costs, a lack of ships available due to extended routes and extensive congestion at key ports. The number of vessels using the corridor has plummeted so far this year, with a significant amount still being diverted around the Cape of Good Hope.

This has sparked concern among some British retailers about their readiness as the busy holiday season approaches. Umar Butt says that Aramex UK seen enquiries about Christmas-related shipment bookings coming in several months earlier than usual.

Umar Butt suggests that in order to meet demand during the holiday season it’s essential for retailers to adopt a flexible and forward-thinking approach and that issues can be tempered by working closely with their logistics partners to forecast demand accurately and secure shipping capacity well in advance.

Umar Butt commented: “Throughout the summer we’ve seen an increasing number of our retail client’s book well in advance compared to previous years to ensure they’re well stocked in preparation for the peak season.  With the festive season following hot on the heels of Black Friday, it’s a turbulent period, so while the panic is understandable, there needs to be some pragmatism as the inclination to order shipments in early could actually snowball into a wider issue.

“Supply chains are already stretched as it is, with many vessels still being forced to divert past Africa. With fewer ships currently available, this has not only put a strain on existing capacity, but also caused congestion at major ports as a result of backlogs.

“The current situation is therefore creating the perfect storm for further disruptions over the coming months. Many retailers are already making knee-jerk decisions by attempting to mitigate these risks by bringing forward their shipment schedules, particularly for crucial holiday inventory, and while this strategy makes sense in principle, the rush to book earlier shipments is going to do nothing more than place additional strain on an already overburdened system. It’s a classic case of an intervention causing the very thing you’re trying to avoid.”

To avoid this backfire effect, Umar Butt suggests that taking proactive steps to strategically plan for the upcoming peak season is key to smooth operations. Considering alternative transport options is also important to allow for future unwanted delays or unforeseen disruptions.

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