Many threats surround the global supply chain. Shippers, ports, transporters, and suppliers have faced port congestion, shortages, and rising tariffs. All this adds up to the ongoing pandemic.
But what about the future? What threatens the supply chain in 2022? From the latest releases from various experts, the pressure continues. At best, relief begins in the second half of the year.
Mainly, the ocean freight market will continue to face major obstacles in 2022, and freight rates are unlikely to fall back to pre-COVID levels. Port congestion will continue to combine with growth in demand for consumer goods.
An overview of global threats to the supply chain
The Omicron variant promises to complicate the situation further, delivering on time will become increasingly difficult. For example, shipping times from China to the United States have already increased from 85 days to 100 days due to the Delta variant. Europe has faced the same problem.
The pandemic imposes blockades on major ports on the US west coast and in China, causing hundreds of ships to wait at sea. The Chinese government’s containment measures grow the suspicion of more closed ports throughout the year.
Less than a month before the start of the Winter Olympics, the port of Tianjin was closed after the local outbreak of Omicron. Last year, the Chinese authorities also temporarily closed the ports of Yantian and Ningbo.
The restrictions resulted in delays for truck drivers moving loaded and empty containers between factories and the port, and the interruptions in production and transportation caused delays in exporting and returning empty containers to factories overseas.
In Europe’s largest port, the Port of Rotterdam, congestion is seen as a threat until 2022. Although there are no ships waiting at sea, storage capacity and inland transport are not in a well-ordered situation.
The future and its solutions
It’s clear that the pandemic has exposed the vulnerability of global supply chains. A high degree of visibility and integration between all parties in the supply chain is required to be well prepared to respond to the crisis.
Investments in digitalization and automation are important to optimize logistics processes further. And the Grydd operating system is the right tool to achieve these capabilities with ease.