The transportation industry, despite some challenges, continues to adapt to disruptions brought on as a result of our current state affairs. The Covid-19 pandemic has had a massive impact on freight trucking companies. The industry has been forced to retool their operations in order to maintain customers’ expectations.
Pre-pandemic, top-rated freight shipping companies were already looking for ways to improve their services by becoming more efficient in order to lower costs. Whether operating one of the many transport and logistics companies, or simply employing their services, experts are predicting some specific trends to watch for in 2022.
While not all positive, industry professionals are predicting four major trends for transport and logistics companies.
You may have heard news that freight shipping companies are experiencing a major shortage of qualified drivers. This shortage is expected to continue in 2022, causing further delays in customers receiving their goods. Transportation and logistics companies looking to expand their operations may find these staffing shortages will put a damper on any plans for expansion.
While the onset of the pandemic has largely been responsible for the drive shortage, retirement is also playing a role. Roughly 25% of the current workforce plans to retire in the next 10 years which will place additional burdens on freight trucking companies. Simply put, the trucking industry requires more experience and qualified drivers.
Currently, the demand for freight shipping companies is greater than current capacity allows. While this issue existed to some degree prior to Covid-19, shipping container rental prices have increased by approximately 700%; a direct result of the ongoing pandemic.
This is expected to continue well into 2022, with some experts predicting a gradual decline in freight rates towards to middle of the year. Clearing the backlog and reaching normal capacity levels will take some time.
Experts also expect to see more mergers and acquisitions in 2022. UPS has recently acquired technology platform Roadie, while Panasonic recently completed their acquisition of Blue Yonder – a leading end-to-end digital fulfillment platform provider.
Some pundits believe the lack of talent, combined with high demand, may push more transport and logistics companies to consider M&As.
The U.S. Congress recently passed their infrastructure bill so they can now look towards building out capacity. New ships, trains, planes and ports are required and, while it won’t happen overnight, this desperately needed supply chain infrastructure will eventually begin to relieve capacity levels for freight shipping companies.
Despite the challenges predicted for 2022, MGA International Logistics remains one of the leading freight trucking companies. Our team of experts is waiting and ready to assist with any of your upcoming logistics requirements. Contact us today for a free, no-obligation quote.
Greg Grimes got it done. I had an unusual shipment that he took on seriously and professionally. Greg was very responsive and communicative, worked many different angles to get me a good price, and overcame several logistical challenges. I would definitely use MGA again.
We have made several trips to Toronto for the 2013 PGA Championship and over the course of those trips we have gotten to know the principles of this organization well. They are headquartered in Toronto and are great people. If you need to reach out to them, ask for Greg or Brad Grimes and let them know you heard of them through this note and they will take good care of you.
Can count on MGA for all my shipping requirements. Fantastic personnel and service.