For Coca-Cola : NO CONTAINERS! NO PROBLEMO!

Coca-Cola is going to great lengths to transport materials by using bulk shipping vessels. Bulk shipping vessels are typically used for raw materials like grain and coal. The ongoing shipping crisis has caused major supply chain disruptions, making many goods harder to find and more expensive.

Coca-Cola has become the latest global company to take a creative approach to to manage supplies during the current shortages in the container shipping sector. The beverage giant reported it is having problems moving supplies around the world to its bottling plants and distribution facilities.

“When you can’t get container's or space due to the current ocean freight crisis, then we had to think outside the box (or the container),” wrote Alan Smith Procurement Director - Global Logistics at The Coca-Cola Cross Enterprise Procurement Group based in Ireland.

Coca-Cola turned to the alternative of using dry bulk carriers and reverting to the traditional breakbulk approach to moving the materials its needs to maintain operations. Smith at Coca-Cola explained the strategy saying that the company was moving 60,000 tons of materials to keep its production lines running. He said it was the equivalent of 2,800 TEU. In response to comments, he said the beverage company required the coordination of supply chain partners and suppliers and collaboration at the ports to avoid hefty detention and demurrage charges, but the number of trucks required was about the as if they were doing containerized shipments.

As part of his social media message, Smith posted photos of three Handysize bulkers, Weco Lucilia C,  Aphrodite M, and Zhe Hai 505, along with the loading process. He said the hope was that this would be the first of many shipments in the coming months.

Another advantage was highlighted by using the ships which are all roughly 35,000 dwt. The smaller size and traditional cargo handling capabilities versus the requirement of the large box cranes to unload the ships is permitting Coca-Cola to avoid congestion at the major ports. “We are heading to some more non-congested ports, so we are hoping for a smooth discharge,” said Smith. Two of the vessels, according to AIS data, are currently in China, while the third, the Zhe Hai 505, departed China.