A Look at the Past: Lessons Learned from Prior Disruptions

Key Bridge

More than 2,000 years ago, the Greek philosopher Heraclitus said that the only thing constant is change. That saying still holds true now — and especially so for the supply chain, which has seen disruption after disruption just in the last five years alone. From the COVID-19 pandemic to the Red Sea disruptions to the Russia-Ukraine conflict, shippers and carriers have had to be nimble in their operations and pivot accordingly. 

As volatility appears to become more constant, supply chain stakeholders can learn from past crises and face the inevitability of disruptions more confidently. By focusing on three areas — collaboration, technology, and proactive risk management — companies can be assured that they are doing their best to meet the ever-evolving global supply chain landscape head-on. 

At Gemini Shippers, we’re here to help our members navigate through these disruptions and challenges with strategic guidance and through our vetted relationships with carriers. This article will explain just how we do that.

Three Lessons Learned from Recent Disruptions

While supply chain disruptions may be painful to experience, each challenge provides shippers, carriers, and other stakeholders with opportunities to develop a more resilient and reliable supply chain network. 

When Disruption Strikes, Collaboration Is Key 

Following an outbreak of war in the Gaza Strip between Hamas and Israel that began in October 2023, Yemen’s Houthis began attacking commercial vessels traversing the Red Sea. The attacks forced major shipping carriers to reroute around Africa’s Cape of Good Hope instead of passing through the Red Sea. While Hamas and Israel agreed to a ceasefire in January, vessel operators such as Maersk and CMA CGM have been reluctant to return to the Red Sea, opting instead to continue to go around the Cape of Good Hope.

The disruption significantly impacted the supply chain as 30% of global container trade transits through the Suez Canal, according to a February 2024 JPMorgan report. Indeed, as a result, the supply chain experienced increased transit times, higher freight costs, and supply chain uncertainty. Shipping costs rose because of longer routes and increased fuel consumption, while just-in-time inventory models and production schedules became stressed by the disruptions.

The Red Sea disruptions are just one situation that highlights the vulnerability of key maritime trade routes to geopolitical instability. To cope with this evolving dynamic, shippers have learned that strong relationships with logistics providers, alternative routing strategies, and contingency planning are essential.

Through these disruptions, Gemini Shippers has helped members by providing access to multiple ocean carriers, ensuring flexible routing options. Gemini Shippers also engaged in and continues to explore strategic partnerships that provide members with alternative solutions in times of crisis.

Agile Operations Require Reliable Technology 

The COVID-19 pandemic was a major disruption that no one anticipated when it began in early 2020. Factories shut down over concerns about spreading the virus, while North American consumers stayed home and shopped online, catapulting e-commerce to even more prominence. That in turn led to port congestion and equipment shortages because of the influx in volumes. And through all of this, there were also concerns about labor shortages because of how contagious the virus could be. 

Managing these constraints on the supply chain network drove demand for tech-based solutions, particularly those specializing in predictive analytics, AI-driven logistics, and automation. Companies with real-time visibility tools adapted more efficiently to these new conditions, while shippers that lacked tracking technology struggled to anticipate delays. 

As a result, companies saw value in investing in real-time tracking and AI-powered analytics to enhance agility and decision-making. And at Gemini, we provided and continue to offer a proprietary member web portal that offers critical shipping data and insights, as well as bill of lading auditing and rate accuracy checks to help prevent financial losses. 

Smart Shippers Prepare for the Unexpected 

There are also supply chain disruptions that occur because of unanticipated accidents that result in significant consequences. These “black swan” events can also have an impact on global trade.

For instance, the March 2024 collapse of the Francis Scott Key Bridge in Baltimore, which was caused when the container ship Dali lost power and collided with the bridge, blocked access to the Baltimore Harbor and disrupted a key transportation corridor. The collapse caused severe delays in the movement of regional and national freight, and companies that didn’t have alternative supply chain options suffered greater financial losses.

From the bridge collapse, shippers learned that they need proactive risk management and diversified supplier networks to hedge against black swan events. Scenario planning is also critical for resilience.

Gemini Shippers helps members prepare and navigate through these unanticipated events by negotiating support for securing alternative routing and carrier solutions. We also offer industry expertise and consulting to help members build robust contingency plans. 

Three Ways Gemini Shippers Helps Shippers in a Disruption-Prone Supply Chain

Instead of weathering supply chain disruptions alone, shippers should consider working with a trusted partner that can help a shipper navigate the choppy waters of freight transportation procurement. 

By partnering with Gemini Shippers, here’s what you’ll have at your disposal:

Access to Competitive Carrier Contracts

Gemini Shippers has established relationships with the major vessel operators. We have fixed-rate agreements with 14 global ocean carriers, which means that you can have access to both cost stability and flexibility. We like to say that having this access provides you with the flexibility of a non-vessel operating common carrier while also having the beneficial pricing stability and visibility of a larger shipper. 

Enhanced Visibility and Cost Control

As a member of Gemini Shippers, you will also have access to a proprietary member web portal that allows you to track multiple functions related to your shipments. The web portal comes with BOL auditing and rate accuracy checks to ensure transparency and rate accuracy.

Industry Expertise and Strategic Partnerships

Lastly, Gemini Shippers consists of a team of logistics professionals that offers guidance on navigating disruptions and securing alternative transport solutions. In addition to helping with procurement and import logistics, we also provide you with access to customs and transportation attorneys. Our nonprofit organization has existed for nearly 100 years, and through that time we have sought to help companies, regardless of size, to navigate the shifting marketplace. 

Navigating Disruptions Requires Collaboration

In today’s fast-moving global trade environment, supply chain disruptions are inevitable. From geopolitical instability to infrastructure failures, businesses must adapt quickly to minimize risk and ensure continuity. 

The key to resilience lies in collaboration, technology, and proactive risk management. By analyzing past disruptions — including the Houthi rebel attacks in the Red Sea, the COVID-19 pandemic, and the Baltimore bridge collapse — shippers can extract valuable lessons to strengthen their operations. 

Gemini Shippers helps businesses navigate these challenges by providing strategic carrier relationships, advanced visibility tools, and industry expertise to maintain stability in an unpredictable world. Interested in learning more? Contact us today.