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Why the Global Shipping Crisis Isn't Going Away Anytime Soon
Supply chain issues continue to plague the industry, while persistent inflation and conflict abroad could create additional market chaos. Here's what it means for distributors.
The global shipping crisis carried over into another month. February 2022 started with record year-over-year container import volumes versus 2021. February was consistent with logistics community expectations about strong demand and bookings in 2022. The economy and hiring also continue to be strong. Consumer expenditure data shows continued high demand for goods and supporting supply chain activity. Inflation and the Russia/Ukraine conflict could be the factors that depress the heightened consumer demand, but it’s too early to tell. The March update of the logistics and economic metrics Descartes is tracking point to a sustained impact on global supply chains.
February continued the very strong start to 2022 with another record for container import volume. Container import volume was down 3% from January 2022, but up 12% from January 2021 and 38% from February 2020. Considering that February this year was three days shorter than January, which equates to 9.7% fewer days to process shipments, it was actually a stronger import month than January. One factor that may be driving the high February volumes is importers accelerating their shipments in advance of any issues that may stem from the International Longshore and Warehouse Union ILWU)
negotiations. Another month effectively exceeding the 2.4 million container import mark indicates that the chronic supply chain disruptions (e.g., delays, variability, etc.) importers and the logistics community have been experiencing are not abating in the short-term…
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