This Week on Supply Chain Now: August 24th – 28th

An estimated 12% of global trade worth more than $1 trillion traverses the Red Sea each year. When Houthi rebels started attacking commercial vessels in November 2023, ocean carriers began rerouting container ships around Africa’s Cape of Good Horn rather than through the Suez Canal on voyages from Asia to Europe. That greatly increased travel time and costs. As of March of this year, shipping through the Red Sea was still down 70% from before the attacks began, according to The Economist, with many ocean carriers still avoiding the Bab el-Mandeb Strait, which separates the Red Sea from the Gulf of Aden and the Arabian Peninsula. Maritime Industry Caught in the Crosshairs Houthi rebels launched attacks on ships in the Red Sea in response to Israel’s military operations in Gaza. The Houthis attacked more than 100 cargo ships between November 2023 and January 2025. The attacks, with missiles and drones, sunk two vessels and killed four sailors. In late October 2024, a headline in gCaptain read, “Red Sea Is Now So Dangerous Even NATO Warships Are Avoiding It.” “The United States Navy continues to send warships through the Red Sea, but its mission to protect merchant ships – Operation Prosperity…

Prospects of supply chain automation have the industry abuzz. It’s even become a major sticking point in the International Longshoremen’s Association contract negotiations with the United States Maritime Alliance. The dockworkers do not want ports to automate processes out of fear they will lose their jobs to machines. Today, there are seemingly endless possibilities for optimization. Terms like generative artificial intelligence and machine learning have become commonplace in discussions about ways to gain efficiencies and reduce costs. Can man and machine work together as businesses leverage automation for optimization? Beyond the Buzz: Understanding the Automation Imperative Machine learning, a subset of artificial intelligence (AI), is described by Business News Daily as a later-stage development in which machines take in data on their own and then analyze it. Automation, on the other hand, is fixed on repetitive tasks; after a job is performed, an automation system “thinks no further.” The Business News Daily article explained that “automation involves an entire category of technologies that provide activity or work without human involvement,” while AI involves “a machine exhibiting and practicing something similar to what we describe as human thinking – that is, the ability to interact in thousands of ways with the…