Disruption in maritime chokepoints and their implications (supply chain)

Abstract

This report aims to study the disruptions and their impacts on hinterland chokepoints in Southeast Asia. With global attention on the Covid’19 pandemic and the repercussion on inland logistical operations, it has come to our attention that disruptions in the hinterland chokepoints may be detrimental for stakeholders. This report reviewed relevant literature and classified the notable external disruptions that are prone to upset the hinterland logistical activities in the PESTLE framework. These literature findings describe the disparity of the hinterland chokepoints distinguished in each region or country. Moreover, they failed to illustrate the determining factor to identify the critical disruptions at hinterland chokepoints. Therefore, this study's primary and secondary research concentrates on uncovering the vital hinterland chokepoints in Southeast Asia and the leading disruptions that trigger substantial impacts. With reference to assessment factors introduced by Sheffi & Jr. (2005), the disruptions are re-examined in terms of occurring frequency, severity, and duration of impact in the primary research (interviews and survey). The preliminary research data are subsequently analyzed and compared with secondary research (journal articles, reports and online sources) findings to conclude the pre-eminent disruptions. The cross-border custom was revealed as the main hinterland chokepoint where logistical operations are held up. The pandemic, custom administrative delays, infrastructure failures, and extreme weather are the top disruptions in terms of occurring frequency and impact. Therefore, signify the priority for stakeholders to anticipate their occurrence and plan for mitigation strategies. On that account, mitigation approaches to elevate operation flexibility and resilience are suggested as a reference for respective stakeholders. For instance, manufacturers are recommended to consider diversifying their supply sources to reduce reliance on a single supplier and the risks of lengthy supply chains. At the same time, cargo owners can increase the buffer stocks and locate warehouse storage nearer to customer bases for immediate response to demand. On the other hand, freight forwarders could pool equipment resources, e.g., containers, with container operators and ocean carriers to resolve short-term equipment shortages. They could also invest in digitalization to ease the impacts of future disruptions. Even though the stakeholders may have discrete priorities and concerns, unified effort and cooperation with the government are required to achieve greater shared interest against these disruptions. Nonetheless, there is more room for further research on the future changes to the trends of these disruptions and their potential impacts on Southeast Asia’s logistics community. Taking various considerations, we believe that the pandemic disruption poses the most significant risk. It will continually affect the operations at chokepoints significantly as of now and in the long run.