Unless you’ve been living under a rock, you’ve probably noticed that the freight forwarding industry is facing significant headwinds. Though the last few months have been relatively stable, it’s come off the back of 2 years of disruption. From COVID-19 and the war in Ukraine to global staffing shortages and rising fuel prices, things have been far from “smooth sailing”. As always, the team at Stockwell International have been monitoring the situation. Here are 3 freight trends in 2022 likely to impact our industry into the future.
FMCG Consumer Goods Shortages
In recent times you’ve probably headed off to the local supermarket primed with your list of groceries, only to find empty shelves. The token sign says it all – “sorry, we’re currently experiencing supplier shortages”.
As consumers, we’ve grown accustomed to accessing international products and markets. Ask any everyday shopper- you’ll find there’s an underlying expectation these products will always be available. Whether it’s oranges from California, berries from Chile, or olive oil from Italy, our taste buds have become accustomed to eating foods from afar at any time. Sadly, this is where short supply or price gouging issues affect everyone.
Other product categories you may have noticed are struggling include baby formula, toilet paper, and feminine hygiene products.
Interestingly, the world has been on an upward trend of globalisation since World War 2 ended in the 1940s. This period is the first time since we’ve experienced such a significant pullback as a global community.
Unfortunately, ongoing global supply chain issues mean a shortage of FMCG consumer goods arriving in Australian ports is a trend likely to continue in the freight industry in 2022.
Ongoing Congestion and Shipping Delays
The global supply chain system is a beast of ports, ships, trucks, airlines, people and electronic platforms designed to move any item, of any size, to anywhere else in the world. That’s no small feat.
So when an event like COVID-19 spreads globally, it’s no surprise that our usual way of doing business is impacted. Our “elasticity” and capacity to absorb spikes in consumer trends weren’t just stretched; in many places, they broke entirely.
As our Director of Sales & Marketing recently shared, there are massive backlogs of TEUs sitting in ports around the world. And this is BEFORE the traditional peak season for our industry in the lead-up to Christmas. Savvy clients are already locking in berths months in advance to ensure Christmas sales aren’t affected by delayed shipping.
Unfortunately, we don’t foresee shipping lines resolving this backlog quickly, so ongoing congestion in ports and shipping delays are a trend we see continuing in the freight industry in 2022 and 2023.
Increased Automation
One of the biggest trends we’ve noticed in the freight industry is a shift away from human capital and increased process automation. From drones monitoring worksites to robotic forklifts in warehouses, these tasks were traditionally performed by humans. As automation practices increase they’re becoming efficient 24/7 operations that never cease.
Trucking and freight forwarding are also benefiting from safety advancements like driver monitoring sensors and collision avoidance systems. GPS, mapping systems and truck sensors also help to plot the most efficient route choices for drivers over land. Ultimately, we aim to keep freight moving over land as safely and efficiently as possible.
Freight Trends in 2022 – How we’re responding
Despite the challenges to the freight industry, Stockwell is making positive headway and returning peace of mind to our clients. With our Australian-based booking office, we’re planning, finding and securing suitable booking slots for freight forwarding clients at competitive rates. We’re also continuing to invest across an extensive range of services.
