The start of a new year is a great time to take stock of what’s happened over the past 12 months and look forward to the future. This reflection needs to include the positive and negative… so in this week’s Roar, we’re covering the best and worst of everything from the media’s surprising fascination with port congestion, the most notable supply chain management trends, businesses’ stop-gap measures to ease freight pain, predictions for further supply chain disruptions in 2022, and the problem of a lack of regulatory framework for future decarbonization efforts.
2021 had the mainstream media spotlight on global port shutdowns, backups, labor issues, and supply chain shortages. From port congestion to Ever-Given and the Suez Canal, supply chains have never been more news or meme-worthy. Here’s one of our favorites (click to see it) According to SCMR, “47% of Americans believe the shortages will continue through 2022.”
The supply chain trends that have contributed to the 2021 crisis and helped shape future operations management practices include the growth of returns from online shoppers, constrained logistics networks, ocean freight capacity, nervous consumers, and technology investments. Many of these will affect supply chains well into 2022, and beyond.
To ease high logistics costs and freight bottlenecks, businesses are adopting new strategies to prepare their logistics networks for 2022. There will be contrasting approaches, however. For example, while big operators can afford to charter ships, smaller businesses may have to buy more from domestic suppliers to keep their supply chains operating.
With the Omicron variant now impacting many countries, the problems of 2022 may be a repeat of 2021 when it comes to congestion and delays, with backlogs continuing to increase. According to Maersk, for example, 40 foot containers will be in short supply for the first quarter of 2022.
Looking more long-term, many nations and shipowners’ groups support a research and development (R&D) fund establishment towards decarbonization in the maritime industry. However, there is still a lack of a legal and international regulatory framework within which companies can plan their investments.
Compliments of Jaguar Freight – a member of the EACCNY.