Supply Chain & Logistics 2021 - 2022 Outlook

According to an article on Forbes year 2021 was an unprecedented year for disruptions in logistics and supply chain bottlenecks. Disruption continued when new variants of COVID-19 spread rapidly resulting closure of terminal which led to port congestion and vessel berthing delay.

This overall slow productivity was causing complications for carrier and putting strain on previously compromised global supply-chain which was hampered due to capacity issues.

Beside, EVER GIVEN stranded in Suze Canal for six days from where 12-15% (approx.) global trade passes. Energy & Fuel crises were also part of the play.

Despite of all the disorder, chaos and fiasco record volumes of containers handled at various ports around the world. Many ocean carriers who were underperforming since decades announced decent and some extravaganza numbers in last quarter.

Major ocean carriers strengthen their logistics arm while few went on for hunting & shopping new add-ons. In year 2022 carriers deployed further 1.3m teu capacity on Transpacific trade-routes but intra-Aisa capacity down by 11%. Intra-Europe capacity also marked 4.5% down because of the capacity shift. Fuel prices upward trend slows down is observed in week 4. MSC is now leading Alphaliner Top100 board with 4,313,568 teu and and 17.1% share leaving its 2M partner Maersk behind.

Ocean carrier diversification in supply chain services vertical is continued, while ‘tech co’ are also active in the league. Global NVOCC / FF are improvising digital solutions and focusing more on visibility. Freight rates are still higher. Shippers and forwarders continue complaining about space, booking and delays even before CNY 2022. Economy is booming but many nations aren’t feeling upbeat.