Disruptions in all logistics networks effectively destroyed capacity, as ships loitered at ports; equipment waited to be unloaded; and trucks rushed out half-empty, dashing off to the next high-paying load with little regard for backhauls.
Highlights that Corey Sharek from ScanTexas found interesting:
- United States business logistics costs (USBLC) rose by 22.4 percent and came to represent 8 percent of the nation’s entire GDP, a level not seen since 2008
- US water shipment costs surged 23.6 percent, with ocean carriers earning more profit in 2021 than in the previous 20 years combined.
- Shippers miffed by low service levels increasingly see the development of their own “captive” truck fleets as a more reliable alternative that has become more affordable and the drop in demand and rates underway in Q2 of 2022 will squeeze carrier margins.
- This includes the further development of technology, especially in parcel tracking and automation.
- If the past few years have taught us anything, it’s that our traditional supply chain thinking—specifically how and where products are sourced, manufactured, and distributed—fails in the face of severe disruptions. Reshoring is, and will continue to be, a vital element of the new, more resilient supply chains.
Email mark@scantexas.com for the full 2022 logistics report.
