THE NEW NORMAL FOR GLOBAL LOGISTICS IN 2022 AMID COVID-19

The advent of the COVID-19 pandemic exposed the many vulnerabilities of global supply chains, which will continue to plague logistics industries today and into the foreseeable future. Close cooperation and high flexibility are needed to be prepared and respond quickly to the crisis and well into the post-COVID era. A couple of challenges carriers, shippers and logistic providers faced in the past year include the ongoing pandemic, port congestions, global supply chain issues, capacity shortages, and rising freight rates. Looking ahead this year, experts predict that global supply chains will continue to face immense pressure, with some relief only arriving by the second half of 2022 at the earliest. Moreover, consensus points out that this pressure will affect the freight market well into 2022, with freight rates unlikely to return to pre-COVID times. Port congestions and capacity issues will continue to mesh with the consumer goods sector’s high global demand. Monika Schnitzer, a German economist, expects the latest Omicron variant to further affect global shipping times in upcoming months. She warns, “This could exacerbate the already existing delivery bottlenecks.” Furthermore, she states that shipping times from China to the U.S. have already increased to 100 from the usual 85 days because of the Delta variant, which may increase further. These problems are also affecting Europe, wherein current events remain tense.