Logistic services

Current situation of international logistics!

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Now we have the impact questions related to international logistics for the year 2023. Given the approach of the new year, we can predict that the issues causing uncertainty in this area will be the drums of recession and inflation.

These will have a direct impact on consumer demand, but above all on the international transport system and supply chain around the world.

This will provoke an in-depth analysis on the part of the actors responsible for logistics processes. They must carefully evaluate each issue to be able to make decisions and, based on them, manage international logistics in each country and in companies.

What we show in this post is an anticipation of what we consider to be the situation of international logistics for the year 2023.

Delays in international logistics will continue

One of the most frequent situations in international logistics and the supply chain is delays, and these will continue into 2023. Due to supply shortages or congested ports, delays will continue to be a problem.

Next year, companies will have to assess demand so as not to make the mistake of placing excessive orders in order to compensate for delays.

Efforts must focus on a slow recovery, so that we can restructure ourselves and thus avoid future shortages, without the market being affected.
Shortage of labor

Another situation that international logistics may face next year is the shortage of workers. It is one of the most fundamental works in the world,

However, road transport has experienced a period of difficulty in obtaining sufficient labor to satisfy demand.

The problem has been more evident in some specific areas, for example in North America and Europe. By the way, warehouse operations and infrastructure development have similar problems.

Possible increase in cyber threats

Actors responsible for international logistics and the supply chain must pay attention to the increase in cyberattacks. This is a growing situation, especially since the implementation of digital technology in both areas.

The sector is expected to increase security levels to prevent information related to supply chains from being put at risk through hacking.

In this sense, it is likely that during the next 2023 some companies in the sector will choose to reinforce their security software, also invest in employee training and perhaps increase their staff with someone responsible for IT security.

Extreme weather conditions will be faced

More than a situation, extreme weather conditions will be a challenge for international logistics. Weather is usually a major factor, but extreme events have become 71% more likely thanks to climate change.

In other words, we can expect more problematic situations in 2023 related to extreme weather conditions.

Currently, it is known that at least 6 million traffic accidents occur every year due to weather conditions, which means significant delays and extreme dangers for truck drivers.

Other parts of supply chains can be affected by events such as major storms or earthquakes. Warehouses, factories and distribution centers, especially those located in coastal areas, can experience severe disruptions due to weather events.

Certainly international shipping and the supply chain cannot control the weather, but it is possible to adapt to the weather. For example, it can increase the resilience of operations and move critical mission centers away from risk areas.

Globalization will be a situation for international logistics

Tension with China, the war conflict between Russia and Ukraine and international relations in general will be other situations to face in 2023 for international logistics.

And they are making global business, as well as the supply of goods and raw materials for global production, increasingly difficult.

The ecological theme will have a special place

The pressure on the sector will increase in 2023, the demand will be for them to be more sustainable. The state of the environment and its care is already a significant purchasing decision for consumers.

Most environmental pollution comes from scope 3 emissions, caused by external sources, for example the supply chain.

In this sense, if consumers increase pressure to be more ecological, companies involved in the sector will look for sustainable partners that guarantee that the entire chain is ecological.

Change in legislation

The regulatory and legal landscape will be two paths that those responsible for international logistics will have to face during 2023. Historically, delays and growing stock shortages have meant that supply chains receive more attention from government entities.

The changes we face are uncertain, there are also many potential developments that could benefit international logistics companies.

In general terms, it is best to monitor the evolution of legal regulations; in fact, these are legal changes that have already begun.

For example, we have the Maritime Transport Reform Law approved on June 16, 2022. A rule that will regulate maritime carriers. Other regulations in the future may regulate other parts of the supply chain.

In short, supply chain challenges will not end in 2023, that is far from happening, they will continue year after year and it is complicated work.

It is up to companies that are part of international logistics to avoid falling into crises similar to those caused by the Covid 19 pandemic. Ideally, they can anticipate and adapt to new situations.



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