It’s no surprise that the worldwide pandemic affects how people live and work worldwide, including in the freight forwarding business. Over the last year, the shipping industry has gone from under the radar, business as usual, to front-page news. Here, we will go through the freight forwarding outlook in 2022; Supply chain concerns will persist through 2022, from ship to shelf, and the obstacles will forever alter how the sector operates.
2022 Freight Forwarding Outlook & Predictions
- “The pandemic’s effects are expected to remain,” according to the Explorate.Co, making the sector’s recovery extremely risky. Chip shortages, for example, are causing delays in the automobile sector, significantly influencing car availability. This emphasizes the fact that supply networks are now under enormous pressure. Shippers must establish positive supply chain partnerships in the coming year since there will be no silver bullet for shipping recovery in 2022.
- According to former statistics and data, returning to normalized freight rates after the all-time highs in 2021 would take a long time.
- Because the cost of ocean freight is predicted to remain high, the cost of some items is likely to rise.
- Carbon-efficient supply networks are expected to become a 2022 trend as firms strive to become more environmentally aware, and ESG standards become more strict.
Freight Forwarding Outlook & Supply Chain Trends in 2022
Here are the supply chain trends to observe in the coming year, as well as what supply chain teams can do now:
Freight Forwarding Plans in 2022
In 2022, freight forwarding and supply chain planning will be necessary. If you’re in the supply chain, start pre-shipping goods and diversifying shipments throughout Alliances today, just in case there’s a strike or walkout. With steamship companies enjoying record profits and dock employees working overtime to keep up with shipments, there may be work slowdowns, walkouts, and other labor issues that affect shipments.
As we witnessed in 2021, a container imbalance exists in the world. As a result, rather than moving empty containers back across the ocean, some containers are waiting at ports, according to our freight forwarding outlook; as we’ve all seen, port and dock personnel cannot unload full containers and convey them inland quickly enough. Warehouses are overflowing, truck chassis are few, and employees to assist in loading or unloading containers rapidly can’t be found. Unfortunately, COVID-19 has created a problem that isn’t going away anytime soon.
Containers stacked at ports and rail yards are all too familiar, aren’t they? Why are so many containers on the chassis waiting to be loaded? Where is the obstacle, and what hinders the freight forwarding flow?
Before the year 2000, the chassis process was complex. The chassis was in high demand at all times. The need for extra chassis in the supply chain pool has been shown by port container congestion. Today, freight forwarders and supply chains are faced with a lack of chassis to get the job done. The issue lies with the supply chain. Because of the present chassis problem, manufacturers cannot obtain the materials and commodities required to build more chassis.
Employment in the Freight Forwarding Industry
Recruiting and hiring are challenging in every area of the industry right now. Port workers, truck drivers, and logistics workers are all in the same boat. Suggestions that a port remains open 24 hours a day, seven days a week, to keep goods flowing will not make a significant dent or solve the cargo congestion problem. There aren’t sufficient qualified personnel to complete the tasks. Another industry to keep an eye on is trucking.
We’ve heard a lot about the lack in the number of truck drivers. For years, truck drivers have been in high demand. The current pandemic situation has exacerbated the shortage. Some trucking businesses are searching for more efficient onboarding strategies, such as transferring a part of the orientation online. Furthermore, more trucking businesses are using paperless and contactless technology, which means drivers will spend less time walking back and forth from trucks to obtain signatures.
It’s just basic economics. Price is determined by demand. Tariffs are just like the past. The world’s leaders’ top priorities are health and safety. Due to the lack of trucks and container-related issues, according to the 2022 freight forwarding outlook, it’s expected that freight forwarding will cost more in 2022.
The Final Word
We recommend you look for freight forwarders that offer more value-added services and ensure your cargo’s punctual arrival and its safety. Contact us to get help from our professional freight forwarding experts.
What are the benefits of using a freight forwarder?
Using a freight forwarder includes having someone else handle shipping logistics, saving money on shipping costs, and getting expert advice on shipping options.
What services do freight forwarders provide?
Services offered by freight forwarders include arranging transportation, handling paperwork, providing insurance, and offering to track and trace services.
What are the different types of freight forwarders?
Several types of freight forwarders include international freight forwarders, domestic freight forwarders, and NVOCCs.