Throughout the past two years, logistics have been thrown off track due to shortages, delays, understaffing and more, largely due to closures and restrictions caused by the COVID-19 pandemic. As a new year begins it is essential to review and examine what shipping will look like around the world.

Ongoing Shortages and Delays

As there is constant growth in the demand for products, suppliers are struggling to keep up. This means that 2022 is likely to follow the pattern of the previous two years. Delays in shipping, as well as congestions, bottlenecks in the supply chain, and high costs are predicted to persist throughout the year. As the COVID-19 pandemic continues and new variants emerge, we also run the risk of experiencing closures along borders as well as in regional and local shipping offices. Continuing the trend from 2021, elongated transit time is also expected to be part of the logistics of 2022. Worker shortages are on the rise, from truck drivers to workers in shipment offices and warehouses. These trends compound to greatly increase the time it takes to ship products, and decreases the consistency of shipping times, especially internationally.

Possible Positives

Despite the delays and shortages caused by the ever increasing demand of consumers and the disruptions of the pandemic, there are also some positive trends for 2022. Things are looking up for third and fourth party logistics providers, as the need for their services are growing. The increase in complications and shipping delays makes the ability to outsource the organization of your company’s supply chain all the more appealing. Advances in technology are also on the rise. With increased shipment automation as well as more accurate data collection, it has never been easier to monitor your customers’ demands. This not only helps balance the predicted inefficiency of the shipping system, but allows you to respond with the products consumers are asking for. Better yet, this is only the beginning of the digitalization of logistics, leaving the door wide open for even more improvements throughout 2022 and the years to follow.

Strategies

There are many strategies you could employ to help your business navigate the coming challenges with logistics. One of these is to always maximize the utilization of shipping space you have available. This could include better organization of products within shipping containers or even a change in your product packaging to make room for more goods. Depending on shipping guidelines and the size of your orders, it may be very cost effective to scale down an order so the shipping container can contain other orders; or scale up to fill a container to capacity. Another prudent strategy is to set up an early warning system so you are aware of delays or threats as soon as possible, allowing you to quickly pivot to a better approach and adapt faster than competitors. With a lack of new human resources, it’s necessary to maximize the workers you already employ, supporting them through warehouse optimization and management. The addition of warehouse robotics could also help maximize your warehouse efficiency. Implementing eco-friendly logistics practices, or green logistics, is another way to ensure the sustainability of the logistics industry for the present and future.

There are many challenges coming for the logistics industry in 2022. However, with the advanced technology we have today as well as the availability of third and fourth party logistics companies, the challenges can be overcome. It may require a great deal of hard work to implement the proper strategies to maintain efficiency and productivity, but it is attainable and worth the investment of both capital and effort.