What is port-centric logistics?
Port-centric logistics describes the...
Supply Chain Digital takes a look at why port-centric logistics is becoming increasingly popular in the industry.
Port-centric logistics describes the location of logistics and distribution services when goods arrive. It is considered an alternative to inland depots and centrally located national distribution centres. It allows you to store your shipment at the port and decrease the number of handling stages throughout your storage and distribution process, saving time and money.
Port-centric logistics is increasingly being considered as a way for businesses to streamline their supply chains and reduce their impact on the environment. For lots of organisations, port-centric logistics aims to remove unnecessary freight miles.
For example, if goods arrive at a port in the south, then travel to the distribution centre in the north, the goods essentially go back the same way again if they are distributed to a customer based in the south. However, if the goods remain in the port that they arrived in, it will avoid wasted freight miles and mean better results for a company’s bottom line as well as helping the environment too.
In addition to the cost benefits, port-centric logistics can streamline operations and enhance customer service because containers are loaded, checked, stored, picked and distributed from a single location. This will lead to shorter lead times, a more efficient supply chain and cost-effective logistics and distribution.
Port Technology International is hosting a webinar centred around to port-centric logistics. It is set to zone in on how ports are decreasing supply chain links by bringing warehousing closer to the port land. The webinar will take place on Thursday, April 30 at 2pm (BST). For more information, click here!
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Elon Musk's Boring Co. planning wider tunnels for freight
Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports.
A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers.
Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US.
The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two.
Boring Co.'s new freight tunnels
The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.
The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete.
Tesla’s supply chain woes
Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue.
Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely.
Top Image credit: The Boring Company / @boringcompany