Thomas Manigk, Managing Director of Kopf & Lübben, and his company have been providing transport services at sea, by air and over land for almost 50 years. This means he is familiar with international business supply chains – and the consequences that maritime accidents can have for them.
Manigk: The “Ever Given” accident had far-reaching consequences for global supply chains that had rarely been experienced before. The Suez Canal is a key trade route through which around 13 per cent of all global trade passes. When the “Ever Given” ran aground, a tailback of several hundred ships formed between the Red Sea and the Mediterranean. Supply chains came to a standstill, as there was not only a lack of goods for manufacture and trade but also a sudden shortage of containers and transport capacity. The latter caused sea freight rates to rise sharply. The Lloyd’s List information service estimated that the delay in goods cost the global economy around 400 million US dollars per hour, the high freight rates notwithstanding. As shipping companies’ schedules had been thrown out of whack, traffic jams formed outside the ports, and there were also massive problems in hinterland transport, as the limited cargo space available was subject to high demand.
LOGISTICS PILOT: Did you feel the effects of this incident at Kopf & Lübben?
Manigk: We certainly did! Global supply chains had already been disrupted beforehand … by Brexit, the Covid-19 pandemic and the unexpectedly strong rise in the global economy. Strong Chinese exports, in particular, led to overbooked shipping space. The “Ever Given” incident exacerbated the situation and presented us with major challenges. We fell victim to the “ketchup effect” – everything came at once, so each order had to be moved or rescheduled several times. Finding good solutions was quite a feat for our staff.
LOGISTICS PILOT: Is it fair to say that cargo flows have changed significantly in recent years?
Manigk: Yes, cargo flows have undoubtedly changed, but I don’t think to the extent that’s often predicted. There are signs that alternative modes of transport to shipping, particularly air freight, may have benefited in the long term from incidents such as the “Ever Given”, although this has always been favourable for time-critical deliveries anyway. Depending on the trade route, rail is also an interesting alternative, particularly along the Silk Road to and from Asia. Maritime shipping has traditionally been hugely significant to global trade, but it is also susceptible to disruptions and bottlenecks, whether due to natural disasters, technical problems or even accidents. As a result, companies have started to explore alternative transport routes to make their supply chains more resilient.
LOGISTICS PILOT: Apart from the “Ever Given”, which other incidents do you particularly remember?
Manigk: The container ship “MOL Comfort”, which broke in two and sank due to a design flaw and a suspected overloading of the hull, spontaneously springs to mind. And, more recently, the Maersk chartered container ship “Dali” made headlines after it rammed into the Francis Scott Key Bridge in Baltimore and destroyed it, killing six and causing billions of dollars worth of damage. Unfortunately, container ships also frequently lose containers overboard. This happened to the “MSC Zoe”, which lost over 300 containers in the North Sea during a storm. For me, the sinking of the “Gulf Livestock 1”, loaded with 5,800 heads of cattle, which was travelling between New Zealand and China and capsized southwest of Japan is particularly tragic.
Manigk: Incidents have definitely led to rethinking processes in logistics in recent years. They’ve prompted companies to re-evaluate their supply chains and look for ways to make themselves more resilient to disruptions and bottlenecks. This involves identifying and assessing risks in order to recognise potential weaknesses. It has led many companies to build up their stock. In particular, I see progress in technological solutions that help to manage supply chains more efficiently and respond more quickly to disruptions. For example, advanced tracking and monitoring systems can help track the location and condition of goods in real time and identify potential problems at an early stage.
LOGISTICS PILOT: What have you done in your company to be better prepared for incidents of all kinds?
Manigk: Accidents are extraordinary events that are generally unpredictable. I don’t think it’s possible to prepare for them. However, the experience we’ve gained in our almost 50 years of operation certainly helps us to react quickly and flexibly to new situations. We’ve also invested heavily in our Track & Trace system, which gives us full supply chain visibility. With our data-based solution approach, supported by AI, we minimise risks in the supply chain and make the correct decisions based on proactive alerts in real time. Ultimately, however, it’s our employees who create real added value through their expertise.
LOGISTICS PILOT: Although the attacks by the Houthi rebels in the Red Sea are not directly related to shipping accidents, such incidents also have numerous consequences, don’t they?
Manigk: Of course, the attacks by the Houthi rebels in the Red Sea have a huge impact on shipping and thus on international trade. The resulting diversions around the Cape of Good Hope lead to considerably longer transit times and higher costs. The increased danger in the region also has an impact on insurance premiums for ships and cargo, as insurers take the increased risk into account and may adjust their risk assessments or even withdraw cover.
LOGISTICS PILOT: What developments do you currently see as the greatest threat to global supply chains?
Manigk: I’m most concerned about the many geopolitical conflicts and tensions between nations, particularly the conflict in the South China Sea. An escalation would lead to significant disruptions in global cargo chains. However, natural disasters such as flooding can also affect transport infrastructures and logistics centres. Cybersecurity is also becoming increasingly important. The increasing digitalisation of the logistics industry has created new risks, particularly associated with IT disruptions. (bre)
Thomas Manigk
Thomas Manigk is Managing Director at Bremen-based freight forwarder Kopf & Lübben, where he and Johan Padding form the management duo.
