Delays to Global Cargo and What We Are Doing to Fight It

Delays to Global Cargo and What We Are Doing to Fight It

The realization we live in a global economy is starkly clear. The delicate balance between manufacturers, suppliers, cargo, and retail has faltered under the pressure of the globally challenging Covid-19 pandemic. Continuing our commitment to bringing our customers transparent and up-to-date information we have prepared a special article today.

Here to answer questions and explain the ins and outs of the main reasons why international logistics and Asian-Europe transport are currently so congested, and what ACON is doing to navigate the situation, are the ACON COO Tuomas Sallinen and the ACON CEO Tarmo Sallinen. First to answer few of the most frequently asked questions is the Head of ACON operations Tuomas Sallinen, giving answers based on his experience.

TuomasWhy is my order late?

I am so deeply sorry for all our customers still waiting on their orders. Across the globe key ports are extremely congested and international cargo is nearly at halt at the moment. The reasons behind the delays can be summarized by three points. One, quarantine efforts in key ports have drastically limited the available workforce resulting in piling up of cargo in congested ports. Two, when trying to avoid these ports the rerouting of cargo is causing additional delays and continuously changing schedules. And third, combined this has led to global shortage of capacity and infrastructure, when thousands of containers are standing still, waiting on reroutings, last minute closings of ports etc.

When does my order ship?

At this moment, it is difficult to set hard timetables, but we are in constant contact with our freight forwards actively trying to gather as much information as we can from our partners. In order to keep our communication clear and our customers well informed we have reached out with emails when changes have occurred.

What causes these massive delays?

The creation of new Covid Hubs in Asia's key ports has halted the international cargo and freight services as nothing before. More than hundreds of thousands shipping containers are stuck in some of the critical ports shut down by quarantine efforts. The challenges of port quarantines are the latest in a saga of global container shipping issues that have plagued the industry for more than a year now, forcing logistic service providers to move their operations to other ports and on to railroads. Such considerable efforts to move the capacity to handle the excessive load of international cargo takes weeks at best to get up and running smoothly.

The executive board of ACON is extremely disappointed on how we have been unable to hold true our shipping estimates and are extremely sorry for the customers being affected. We are working tirelessly to find solutions any mean necessary, even if the global economy has placed us in an extremely difficult situation. Here to answer some more questions from our customers is the CEO of ACON, Tarmo Sallinen.

TarmoWhy is ACON suffering the delays?

I feel sorry for all these delays you as our customer have experienced. ACON is not the only company facing these issues, the global situation affects brands all over the globe. After the world altering effects of the global Covid-19 pandemic, we faced an unseen demand for our products when people stuck in their homes are trying to do their best to stay active in these difficult conditions. We have done our best to keep up with the positive demand for our products by upping our production, but unfortunately the worsening global freight market can’t keep up with the demand.

What has ACON done to fix the issue?

ACON is making every possible effort to serve our customers the best as we can. We have invested more resources in our global logistic network, our whole team is working hard to get more accurate information about our inbound shipments. Unfortunately, ocean freight forwarders cannot offer up-to-date information due to last-minute cancellations and rerouting of cargo. We are actively looking into more options to resolve the issue. To fight the congested oceans, we have shifted to railroads to secure inbound freight schedules. Unfortunately, many other brands working in the European market have done the same; thus, the demand for rail freight has soared. Freight operators are working on opening new routes. Still, increasing demand results in delays in departures for Europe-bound trains.

How will ACON avoid similar issues in the future?

After facing these issues, we have analyzed the situation and learned from it. We'll anticipate longer shipping times when placing new orders and scheduling new freight shipments to keep our incoming cargo flow continuous. We are inspecting our logistics network closely, actively monitoring the most efficient transportation options and utilizing them. Struggling under the burden of global cargo, many of our freight forwarders communicate raises in shipping costs. Shipping times have at least doubled, and prices have more than tripled already. We here at ACON are committed to keeping our prices stable as long as possible.

Acon COO and CEOEven if the situation seems gloomy at times, we here at ACON are committed to our mission of spreading the joy of staying active and having fun and will continue to do just that no matter what challenges we face. We want to take this opportunity to thank all our customers for their patience and understanding. We hope you continue to trust in ACON like other 200 000 customers already have, and continue to choose the best bounce.

We wish you all an amazing and bounce-full summers!

With our sincere regards,
Tarmo & Tuomas Sallinen