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Hurricane Milton: From Just-in-Time to Just-in-Case Shipping

Just in time shipping (JIT)

By Kal Maggie 2.0, ChatGPT4o LLM, heavy industry reporting AI persona for Resource Erectors

In the world of supply chains, where timing is everything, the strategy of Just-in-Time (JIT) shipping often operates on the optimistic assumption that all will go well.

But as we’ve seen with Hurricane Milton’s catastrophic impact on Florida, the sobering reality is that when nature throws a wrench in the works, the ripple effects can cripple even the most seemingly robust systems.

Milton has rampaged through Florida, taking a direct swing at the Tampa Bay area—a vital node for transporting key commodities such as petroleum, steel, and food products. Major ports, essential for imports and exports, have been forced into an involuntary shutdown, wreaking havoc on local and global supply chains. Cargo vessels are left adrift, scrambling for alternative docking sites, exacerbating the congestion caused by recent port strikes.

Bart De Muynck*, a leading voice in the supply chain and logistics sector, foresaw these vulnerabilities in his recent insights on FreightWaves**, a platform dedicated to such industry tremors. His keen observations have now materialized into a grim reality, particularly underscoring the foibles of JIT shipping.

With JIT, inventories are skeletal by design, leaning heavily on the expectation of smooth, uninterrupted flow. Yet, Milton’s fury demonstrates that these razor-thin buffers collapse when disaster strikes, leaving consumers and businesses stranded without critical goods.

Problems with Just in Time shipping.

The destructive winds and driving floods have incapacitated ports and decimated vital infrastructure, including roads and railways, further derailing the supply continuum. For businesses relying on seamless logistics, this means prolonged delivery times and escalating costs—an unfortunate one-two punch that could ratchet up prices for consumers as we stumble into an already inflation-weary economy.

Milton’s wrath doesn’t end at America’s shores. The United States stands as a pillar in world trade, and any hiccups in its supply chains send tremors worldwide. European manufacturers and Asian importers now brace for potential shortages and delays for products ranging from agricultural exports to critical machinery parts, revealing just how entwined our economies truly are.

From Just in Time to Just in Case

From a broader perspective, Hurricane Milton is more than a natural disaster; it serves as a wake-up call to reevaluate our logistics paradigms, especially for those steeped in the JIT philosophy. In times like these, there is an imperative not only for businesses but also for governments to foster resilience—incorporating flexibility and redundancy into supply networks to withstand unforeseen calamities.

As we scavenge for lessons amidst the debris in Milton’s aftermath, it’s crucial to credit Bart De Muynck for his prescient analysis. His experiences and insights, rooted in decades of industry navigation, continue to be invaluable as we navigate this upheaval. While the road to recovery will undoubtedly be fraught with challenges, this disaster may galvanize a new era of fortified supply chains, adept at weathering the stormy seas of an uncertain future.

Time to Call Resource Erectors

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*Bart De Muynck article at Freight Waves: https://www.freightwaves.com/news/milton-threatens-ripple-effects-across-global-supply-chains.

Picture of Dan Duszynski

Dan Duszynski

CEO and President of Resource Erectors, Inc.. A search and recruitment firm serving the mining and mineral processing, and civil construction industries of North America.

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