What does 2022 have in store for container logistics players
- 1 week ago
- by Jeenaindia
According to a global survey report, the year 2022 is not anticipated to be bringing a breath of fresh air for container logistics players. Almost 75% of players are looking at revisiting their logistics strategy in the coming year. The list includes the top 10 logistics companies in India too. Container xChange’s survey report highlights the current sentiment of the global container logistics industry. The industry is predicting another gloomy year and challenges on their way in 2022. Among all the challenges this year, finding space on the vessel and various surcharges levied by carriers were the top ones.
Let’s delve deeper into the key findings from the survey to understand the outlook for the year 2022:
Just when the container logistics industry showed the slightest signs of recovery, the Omicron variant made a dramatic entry and worsened the international sea freight cargo services scenario. It is being foreseen by the leaders of container logistics players that new variants are going to continuously disrupt the port operations and labor capacity as we make way into 2022. Uncertainty and unpredictability are going to be persistent throughout. On the brighter side, they are hopeful that the staggering earnings made by container logistics players in the year 2021 would be put to good use, e.g. improving service levels across their networks. They have also mentioned the industry’s awareness of shippers willing to pay higher prices for shipping. It is therefore believed that prices won’t be a constraint in the year 2022.
With container prices and leasing rates starting to go down, the current rate spike could be the consequence of a temporary supply crunch. It is expected that with the easing up of labor union conflicts at the US ports, the capacity challenge would be improving worldwide. It is also predicted that the return to normal could be experienced in the second half of 2022 by the world’s container logistics players.