In recent years, the global geopolitical situation is volatile, local wars and conflicts are frequent, resulting in increased volatility in the international maritime market. As an industry highly dependent on shipping, stone trade is facing multiple challenges such as rising freight costs and route disruptions.
The effects of war on shipping
1. Significant freight increases: The war caused oil price fluctuations and increased fuel costs, which directly pushed up shipping costs. Taking the Middle East route as an example, the shipping cost since 2023 has risen by 30%-50% year-on-year, and some routes even have the phenomenon of "one class is difficult to find".
2. Route disruption and delay: Ports in conflict areas are closed or routes are diverted, resulting in longer transport times. For example, tensions in the Red Sea region have forced many ships to circumnavigate the Cape of Good Hope in Africa, increasing transport costs and time.
3. Increased insurance costs: The risk of war makes the cost of Marine insurance rise sharply, further increasing the cost burden of stone trade.
The impact of shipping on stone trade
1. Cost pressure transmission: The rise in shipping costs directly pushed up the cost of stone landing, resulting in a rise in the price of end products, weakening market competitiveness.
2. Unstable supply chain: Route disruption and delay have disrupted the supply chain rhythm of stone trade, and some projects have been delayed due to material failure to arrive in time.
3. Fluctuations in customer demand: Affected by global economic uncertainties, some customers delayed or canceled orders, resulting in short-term fluctuations in stone market demand.
Coping strategies of stone companies
Faced with the challenges brought about by the shipping crisis, Fortune East Stone quickly adjusted its strategy and effectively responded to the crisis through diversified transportation solutions and digital management to ensure the stable operation of the business and maximize the interests of customers. To ensure a stable supply of stone to global customers. Here are the lessons learned:
1. Diversified transportation solutions
Sea, land and air transport: For different needs such as samples and plates, the use of sea, land and air multimodal transport to ensure timely delivery of goods.
Regional storage layout: Set up storage centers in major markets to reserve stone in advance and shorten the delivery cycle.
2. Digital supply chain management
Real-time monitoring system: real-time tracking of goods location and transportation status through the digital platform, timely adjustment of transportation plans, and real-time feedback to customers, increase customer trust.
Data analysis optimization: Use big data analysis to predict changes in the shipping market and lock shipping space and freight in advance.
3. Cost control and allocation
Long-term cooperation agreements: Sign long-term cooperation agreements with shipping companies to lock in preferential freight rates and reduce the impact of price fluctuations.
Transparent communication with customers: Share the cost of freight increases with customers to maintain price competitiveness.
4. Green logistics innovation
Energy efficient means of transport: The use of energy-efficient ships and vehicles to reduce transport costs and negative environmental impact.
Recycling packaging materials: Promote recyclable wood frame packaging materials to reduce waste in logistics.
Industry outlook: Challenges and opportunities coexist
Although the war and shipping crisis brought short-term challenges to the stone trade, it also led to innovation and change in the industry. In the future, Fortune East Stone will continue to uphold the concept of "customer first, quality first" and promote the sustainable development of the industry through the following measures: (1) Strengthen international cooperation: Establish closer cooperation with shipping companies and logistics platforms to improve transportation efficiency. (2) Market diversification: Explore emerging markets such as Southeast Asia, reduce dependence on a single region, and enhance anti-risk ability.
Conclusion
In the context of the global shipping crisis, Fortune East Stone has demonstrated its responsibility and strength as an industry leader with flexible adaptability and innovative solutions. In the future, we will continue to work with customers around the world to overcome difficulties and create brilliance together. For more information or cooperation opportunities, please feel free to contact us.
Jessie
Fortune East