Shipping and the general transport of goods have undergone extreme changes in the past decade. Things like the COVID-19 pandemic, shifts in online shopping, and armed conflicts in various regions have made massive changes in the early 2020s. So, what should you keep an eye on for 2023? Read on to find out what the team at USA Strapping thinks some of the trends will be that could shape the shipping industry over the next few years.
Watch Out For Labor Shortages
The dwindling workforce is one of the most significant bottlenecks for shipping and transport. Whether you are shipping over land, via rail, or overseas, labor is struggling to keep up with demand. The pandemic, conflicts worldwide, and sanctions from other nations have led to a greater need for workers in every industry.
Retailers and shipping managers everywhere have started to shift focus to MAAS (Mobility As A Service) companies. While MAAS is not a fix-all solution, the services offering multiple shipping options and focus on last-mile deliveries provide an ability to work with various carriers and ensure products can reach their destination on time.
Keep An Eye On Lower Port Costs
A global freighter index, the Freightos Baltic Index, has indicated a shift in the price of shipping containers. Back in 2021, ports were clogged due to container ships having to wait weeks to unload. This volume problem has finally seemed to balance out. Today, new shipments are roughly 60% cheaper per container than just a few years ago, lowering overall shipping costs on overseas goods. While that is still higher than pre-pandemic levels, the volatility in price has continued to lessen and is projected to balance itself in 2023.
Note A More Adjustable Supply Chain
Gone are the rigid supply chains of the past. Thanks to the growing use of AI and internet connectivity, the movement of goods has never been more agile. Retailers have shifted away from relying on a single transport method and are pivoting to utilizing several modes (similar to MAAS). However, this is not a revolution or a complete supply chain overhaul. These changes are more a shift to adjust tools depending upon the situation rather than a replacement to the system overall.
AI Is Shaking Up The Market
Artificial intelligence and cloud-based computing services are poised to shift the market. Thanks to the inevitable expansion of AI, the shipping industry is trending more toward autonomous services. Advancements in computing mean that more accurate estimations and consistent delivery times can be relied on by vendors. Additionally, clients have more access to information than ever, and providing correct shipping information is slowly becoming the norm. Some of the other factors computing is changing are as follows:
- Load Balancing: Lead to savings on costs by dividing goods between multiple warehouse locations rather than a single place.
- Autonomous Warehouses and Logistics: AI can maintain and move products while assisting workers with proper inventory management.
- Lower Labor Costs: Part of the highest costs is the massive labor and trucking shortage, with artificial intelligence able to pick up some slack and remove the need for a massive logistics network.
Sustainable Shipping Is On The Rise
Rising fuel prices and a cultural shift toward green alternatives are now affecting the shipping market. Newer, more efficient shipping methods, such as modernized freighters and electric trucking, will continue to grow year by year. Further, the shortening of shipping lines along with the efficient movement of goods aims to raise sustainability. As large-volume commodities continue to rise in popularity, the way we package our goods will shift into recyclable, biodegradable, and more sustainably sourced materials. More sustainable options for packaging and lower reliability on single-use plastics is a win-win for the entire industry.
Reach Out to USA Strapping to Learn What We’re Doing to Handle these Shipping Industry Changes
Changes in the shipping industry impact every company, including USA Strapping. We do our best to forecast our shipping needs well into the future, which is why we’re always interested in learning about the latest trends in the industry. To learn more about these trends or to learn about some of our packaging products that are available now from our US-based warehouses, don’t hesitate to reach out to us today by phone at 888-768-0001 or through our online contact form.