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  • Current situation of international logistics!

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    Now we have the issues of impact in terms of international logistics for the year 2023. Given the approach of the new year, we can predict that the issues that cause 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 worldwide.

    This will cause an in-depth analysis by the actors responsible for the logistics processes. They must carefully evaluate each issue in order to make decisions and, based on these, manage international logistics in each country and in companies.

    What we show you in this post is an anticipation of what we consider will 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 are delays, and these will continue into 2023. Due to shortages of supplies or congested ports, delays will continue to be a problem.

    Next year, companies have to assess demand so as not to make the mistake of over-ordering in order to make up for delays.

    Efforts should focus on a slow recovery, in order to be able to restructure and thus avoid future shortages, without affecting the market.

    Labor shortage

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

    However, road transport has experienced a time of difficulty in obtaining sufficient manpower to meet the demand.

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

    Possible increase in cyber threats

    The actors responsible for international logistics and the supply chain must pay attention to the rise of cyber attacks. This is a booming situation, especially since the implementation of digital technology in both areas.

    The sector is expected to raise security levels to prevent information related to supply chains from being put at risk by hackers.

    In this sense, it is likely that during the next 2023 some companies in the sector will choose to strengthen their security software, in addition to investing in employee training and perhaps in increasing their staff with a person in charge of computer security.

    Extreme weather conditions will be faced

    More than a situation, extreme weather conditions will be a challenge for international logistics. Usually, weather is an important 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, at least 6 million traffic accidents are known to be caused by weather each year, which means significant delays and extreme dangers for truck drivers.

    Other parts of supply chains could be affected by events like major storms or earthquakes. Warehouses, factories and distribution centers, especially those located in coastal areas, can suffer serious interruptions due to incidents of weather.

    Certainly international transport and the supply chain cannot control the weather, but it is possible to adapt to weather conditions. For example, you can increase the resistance of operations and take critical mission centers away from risk areas.

    Globalization will be a situation for international logistics

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

    And it is that, they are making business more and more difficult at a global level, in addition to the supply of merchandise and raw materials for world production.

    The ecological theme will have a special place

    The pressure for the sector will be increasing in 2023, the request will be to make them more sustainable. The situation of the environment and its care is already a significant purchasing decision for consumers.

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

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

    Change in the legislation

    The regulatory and legal landscape will be two paths that those responsible for international logistics must face during the year 2023. Historically, delays and the growing shortage of stocks have caused supply chains to receive more attention. by government entities.

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

    In general terms, it is best to follow the evolution of legal regulations, by the way, they are legal changes that have already started.

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

    In summary, the challenges for the supply chain will not end in 2023, that is far from happening, they will continue year after year and it is a complicated job.

    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 should be able to anticipate and adapt to changing situations.

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