If you remember from January, our team gave you a logistics forecast for the upcoming year. Logistics were rocky even then, which made forecasting what would happen to supply chains a challenge. Most experts (ourselves included) didn’t have high expectations for at least the first half of 2022, which, unfortunately, turned out to be accurate.
However, now that we’re officially in Q4 of 2022, we thought it was time to take a look at what the factors we prepared for and ones that caught the industry off guard. Plus, it’s time to answer the all-important question: when will the supply chain stabilize?
Expected Supply Chain Obstacles
In our initial forecast, we advised our customers to continue expecting delays as the new year rang in. Unfortunately, we were right to be cautious.
Although setbacks have fluctuated across the globe throughout this year, delays continue to impact even the most expedited parts of the supply chain. So, how is this ebb and flow explained? This summer was a prime example. When West Coast ports backed up, the East Coast and Gulf Coast ports stepped up…but that led to influxes of shipments, cargo being rerouted, and more materials to unload than trucks to move them.
Now that the cycle has ended (for the time being at least), another begins. October saw reports of West Coast port imports dwindling. It’s the dance they do.
How Inflation Impacted the 2022 Supply Chain
A major player this year was something we didn’t mention in our forecast blog: inflation. In fact, inflation has been such a hot topic that we wrote a separate blog on how inflation impacts the supply chain. Regardless of whether we predicted it or not, rising rates of inflation have been a large part of 2022’s story. From fuel prices to wage adjustments, inflation has continued to pose issues for the logistics industry.
When Will Supply Chain Issues be Resolved?
That’s a great question. It doesn’t look like this year will finish with a normally operating supply chain. In fact, it might take until early 2024 for the industry to return to how it was before COVID.
As scary as that may sound, if there’s anything you can count on, it’s that TOC Logistics has your back. We’re prepared to provide you with quality services that save you money and optimize your supply chain, even in a market that keeps on shifting. Contact us to learn how you can best prepare for whatever the industry has in store.