Logistics at Risk! Charter, Outsource, or Vertically Integrate?

Historically most companies have relied on third party companies to handle most every aspect of their logistics. Whether that be ocean going vessels, long distance trucking, or last mile delivery, there are a lot of specialty companies offering these services.

But the Coronavirus pandemic has upended many of the paradigms that we have considered normal. Supply Chain continuity of supply issues persist and this includes constraints and delays related to logistics capacity and delivery integrity.

The result is that more and more companies are taking matters into their own hands. Instead of relying solely on logistics companies they are taking steps to charter their own ocean going vessels.

While these may be short term measures it does raise the strategic question as to whether companies should in-source their logistics and continue to charter ships.

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