Industry News

3 Good and 3 Not So Good Supply Chain Predictions for 2022

The Not So Good

  1. Supply Chain Mirage: While relief may be in sight, it won’t be a quick road back. Think of the improving supply chain like a cargo ship correcting its course, slow. Businesses should still plan early, not just in time.
  2. Caught in the Middle: Carriers are pushing to work directly with cargo owners eliminating third parties like freight forwarders. In turn, this could decrease space for small to medium-sized businesses and keep freight rates inflated.
  3. COVID-19Yes, we had to say it. The continued and unknown trajectory of COVID-19 is a wild card in the reliability of global closures and labor.

The Good

  1. Decreasing DemandMany believe that freight rates have been propped up by U.S. stimulus, thus increasing consumer demand. With stimulus now over, demand will decrease, and supply chain stress will ease.
  2. Shorter Supply Chains: Supply chain congestion negatively impacted many businesses and sparked a call for increased domestic manufacturing. As a result, this relies less on overseas goods and eases foreign demand.
  3. Government Intervention: Washington’s desire to pass legislation surrounding supply chain issues puts a much-needed focus on port infrastructure, labor, and the business of trade.