PCN members in Panama, UPCARGO Logistics report on some of the unexpected challenges faced in their logistics chain during a recent shipment.

Recently, the company encountered a significant disruption due to a unexpected change in the Port of Destination. Originally, the route was set from the Port of Shanghai to the Port of Balboa. However, the flat racks ended up at the Port of Manzanillo, Colon, around 80km away from Balboa. UPCARGO only learned a day after arrival that the cargo would remain at the Manzanillo Terminal.

This change resulted in several challenges, including increased transportation costs for the client, extra costs for road adjustments, as well as additional route studies.

Scope of Work

• Reception at the port
• Port survey
• Unloading of 2 x 40’ flat racks and 1 x 20’ flat rack
• Transport using lowboys
• Police escorts
• Route studies
• Nighttime transport
• Customs custody

Having already conducted thorough studies and route evaluations from the Balboa terminal to the delivery point with exceptional results, UPCARGO were simply waiting for the cargo to load onto the transport vehicles.

Challenges Faced with this POD Change

1. Longer Travel Distance: This increase meant more potential obstacles. During the revised route study, UPCARGO identified that they would not pass one of the toll booths on the northern corridor. Their solution was to remove some jerseys that defined the roadway to avoid the toll.

2. Adjustments with Time Constraints: While the company have requested such adjustments in the past, this time was different due to tight delivery schedules. Involving multiple suppliers meant that any delay could result in additional costs, with the primary goal to minimise these expenses for their clients.

3. Rapid Permitting: In record time, UPCARGO obtained the necessary permits and costs to remove the jerseys, secured an assignment from a traffic police unit, and managed operations at the port.

4. Proactive Measures: Anticipating this situation, they took steps in advance by scheduling port appointments and inspections.

5. Successful Execution: In the end, the company successfully removed the cargo from the terminal without any issues.

UPCARGO Logistics accomplished:

• A successful transfer
• Minimisation of extra costs
• A happy client

"In UPCARGO's daily operations, we frequently encounter multiple challenges and last-minute changes that push us to find concrete solutions for our clients and strategic partners. Our commitment is to manage logistics in a fair and preventive manner, ensuring that we meet the needs of our clients effectively and efficiently."

http://www.upcargo.com