Soaring temperatures and a prolonged dry spell in Europe this summer means river levels are at an all-time low, most notably in the Rhine, which was closed to freight traffic this week.
The pandemic has changed the nature of global supply chains with companies seeking to source goods from multiple places to minimize shipment and production disruptions.
The biggest headline from the 2022 State of Logistics (SoL) report unveiled today at the National Press Club in Washington shows that U.S. business logistics costs rose by a whopping 22.4% to $1.85 trillion last year. That represents 8% of 2021’s $23 trillion Gross Domestic Product (GDP).
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The constant and high demand for transportation from supply chains has created pressure on major ports where cargo and containers are congested.
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According to predictions from ocean shipping company, forwarders and many other companies, port congestion in the US will get worse before returning to its peak.
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In an effort to save what is left of the auto industry, Russia is taking measures to establish a new supply chain and logistics network, due to damage from sanctions. international after the Ukraine war.
China's strict anti-epidemic policies have caused supply chains around the world to fall into an extreme crisis. Along with that, the conflict between Russia and Ukraine further changed the global economy, which was already severely affected by inflation.
In the context of the war in Ukraine, shipping and air freight were severely impacted, followed by the global supply chain, which was already frayed by the Covid-19 pandemic, which continues to face a significant challenge. It is unknown how long it will last due to supply chain disruptions from these two countries.
As 2021 closes, the global shipping industry will face the risk of volatility from unprecedented supply chain disruptions and bottlenecks. Along with the rapid spread of the Omicron variant, countries have handled this outbreak with a variety of measures, making it difficult to predict potential supply chain risk
