Supply Chain And Shipping Predictions For 2023 By Container xChange
Container xChange is one of the leading online platforms for container logistics that brings together all relevant companies to book and manage shipping containers and settle all related invoices and payments. Container xChange’s Container LogTech predictions report for 2023 highlights critical global trends that the shipping and supply chain industry will witness in 2023. The report draws attention to some of the most pertinent issues the industry will see this year, helping professionals better prepare for navigation.
“The overall outlook for the year 2023 remains gloomy. Europe is hit hard with all-time high inflation; China struggles to cope with the virus, and the US continues to witness hinterland transportation challenges and labour unrest. Most of these challenges will stay until 2023. Consumer confidence will pick up, but it depends on whether we witness more disruptions in the coming times.” Christian Roeloffs, Co-Founder and CEO, Container xChange, an online container logistics platform.
Most of the experts surveyed foresee that inflation and recession will significantly impact this year and will be the biggest driver of disruptions.
‘‘Due to inflation increasing, there will be more unrest in the labour market which will certainly lead to more strikes, specifically in Europe, the UK and North America. And as we have seen before, strikes result in slow operations within the port, which can exacerbate supply issues,’’ said Aamir S. Mir, Chief Operating Officer at Caspian Container Company SA, as part of the interviews.
The report further predicts that the long-term shipping contract rates will see an uptick in 2023, though gradually. This slow increase applies to all modes of transport. A reset is expected with negotiations going on to bring contract rates in line with spot rates. On the other hand, until a balance is reached between supply and demand, forwarders will favour short-term contracts until the rates stabilize. As per the report, freight forwarders will employ a ‘wait and see’ approach before making long-term air cargo capacity commitments.
Additionally, trucking rates for dry and reefer cargo will continue to drop in 2023. Freight tonnage will continue to contract as market conditions and volumes return to pre-pandemic numbers.
The unresolved worker strikes of 2022 will spill over in 2023. Furthermore, the chances of new strikes are high due to inflation-related prices putting pressure on workers’ disposable incomes. Labour dissatisfaction might grow in European and North American economies. In that case, it will cause disruptions in global supply chains.
‘‘Two, almost three exceptional years for carriers are ending. They will have to adapt to lower margins due to a different supply and demand balance. Many customers, forced into high-cost contracts during the up-cycle, will come for revenge in the down cycle. And regulatory pressures following excessive profits might appear on top of that, be it through bodies like FMC, EU, or China’s MOC, as they each review alliance exemptions, new taxation regulations, or precedence cases from several complaints raised by shippers at different institutions.’’ said Ruben Huber, Founder and Director of OceanX.
The report further covers the growing expectation of the 3PL (third-party logistics) market to solidify in 2023. Reportedly, it’s projected to reach $1,789.74 billion by 2027. Another key trend on the list is the digital transformation of the industry. In the years to come, the adoption of digital technologies in shipping will focus on vessel schedules, intuitive booking interfaces, instant slot booking, and capacity confirmations. In this regard, the industry’s primary concern will be having systems interact directly via automating the Data-Analysis-Decision-Action cycle.
Please download the full report from here –https://www.container-xchange.com/reports/2023-predictions/