Challenges Facing Logistics and Transportation in 2022
With the new year upon us, many business owners and consumers are probably wondering what’s ahead for 2022. Will rising inflation and driver shortages continue to exacerbate the supply chain issue? Will the struggles of navigating logistics in a post-pandemic world continue to cause headaches for organizations across the globe? At AFP Global Logistics, we are always monitoring the latest trends and looking ahead at what’s to come in the future. We’ve rounded up a few transportation and logistics challenges that many companies may face in the new year.
Let’s first look at some of the issues facing logistics and transportation now:
- Driver shortages
- Rising gasoline prices
- Cargo ships stuck at sea
- Worker shortages to unload cargo ships
- Reduced workforce
With so many difficulties stacked against the logistics industry, it’s no wonder that consumers are seeing a major disruption in the global supply chain. So let’s now look into how some of these issues may carry over into the new year.
Transportation is Expensive
The logistics of transporting goods is expensive, period. It’s typically the most expensive overhead for a business, and that’s not changing anytime soon. With gasoline and diesel prices rising, plus a demand for increased wages, transportation may likely get even more expensive than it is now. That effect trickles down from manufacturer to business owner to consumer. Expect to see similar trends in 2022 with rising transportation costs.
The Economy Factor
Even with supply chain issues, consumers are spending at record rates. After almost two years of being conservative and staying home, consumers are now out and about to spend their hard-earned money. Demand is high and with lockdowns ending around most of the world, consumers are ready to return to restaurants and travel. This trend is likely to stay in 2022 and businesses will need to adapt to make sure their supply chain needs are met.
Infrastructure Advances Could Help
One way out of our current crisis is to invest in better infrastructure systems to avoid issues like this. Investing in new ships, planes, ports and trains could seriously alleviate the stresses we are currently putting on our supply chain. Unfortunately, it’s easier said than done, as most legislation for new infrastructure can take years to complete. However, advances in infrastructure is something to look forward to in 2022.
AFP Global Logistics Wants to Help
For over 30 years, AFP Global Logistics has been one of the premier logistics companies in the country. In fact, over 50% of our total business has come from the trade show industry. When it comes to timeliness and reliability, no job is too big or small for us to handle.
In addition to trade show logistics, we also offer: