The Freight and Logistics Market Trends for 2022

Another year nearly over, and we look back at the last two years to understand how much of an impact COVID-19 has had on the world, its industries and global trade to ensure that we take away the lessons and insights, and the revolutionary growth made to adapt and persevere. With the new year approaching, the freight and logistics market trends for 2022 have been identified by expert with the International Maritime Organisation (IMO) defining the theme for 2022 as “new technologies for greener shipping” towards the ultimate goal of a greener and sustainable future.

The IMO, whilst keeping to its primary theme, have converged with the council mid-year in 2021, and have also strategized into how this is possible. From pushing for newer and innovative technologies for a smoother transition for green shipping, and assisting the integration especially with developing countries, be it SIDS which are Small Island Developing States (such as Maldives, Mauritius, Singapore, Fiji, etc) and LDS which are Least Developed Countries (such as Bangladesh, Madagascar, Nepal, etc). The theme is closely aligned with the United Nations Sustainable Development Goals (SDGs), specifically with the likes of the following;

  • SDG 13 – Climate Action and Sustainable Use of the Oceans
  • SDG 14 – Seas and Marine Resources
  • SDG 9 – Industry, Innovation and Infrastructure
  • SDG 17 – Important of Partnerships and Implementation

Whilst the IMO has envisioned greener freight and logistics market trends, there are still questions in terms of the progress and growth expected in terms of rebounding and recovering from the losses and disruptions of COVID-19. Whilst disruptions may continue till the end of 2021, with delays in Christmas deliveries and fulfilment, post congestions, worker shortages, equipment imbalances, the peak season has put a lot of pressure on the freight and logistics market. Inflation or price hikes are to be expected not online in terms of packaging costs, detention charges, and transit delays which affect the bottom line.

However, by being aware and creating understanding of the industry and the current volatile environment, maybe companies have adapted to changing their lead and turnaround times, preparing for contingencies in effort to mitigate the changes in the freight and logistics market dips and turns.

Things to watch out for in the freight and logistics market in 2022 also include the rise in diesel which will ultimately hike up transportation costs and freight rates. This will also have a snowball effect on the costs of goods and final revenue too. Further, the add-on of peak season surcharges may also continue well into mid-January of 2022 with the likes of FedEx and UPS.

Some tips to ensure that you do not get blindsided by the freight and logistics market trends in 2022 is to partner with a reliable logistics partner that communicate the changes in order to allow you enough room to change your supply game plan, especially with worker shortages. Ensure you have backup options for last-mile delivery and also, plan ahead and execute to avoid the last-minute rush.