Supply chains and logistics in 2022: Things to pay attention


Many personnel in shipping and logistics considered 2021 as an exception with disruptions and goods congestions. However, at the present, there are some signs to show possible events in 2022, here are few things to pay close attention.

Disruptions in Feeder services of South China region

Most of the input goods destined for the Pearl River Delta region are transported through major cargo terminals in Hong Kong and Yantian (Shenzhen, China) by feeder ships which may be temporarily suspended from December 2021 to February 2022.

The early suspension process also entails a mandatory quarantine period. The Chinese crew will undergo 14 days of onshore quarantine before they can go home for the Lunar New Year holidays, plus 7 days of quarantine in their arriving regions.

The Lunar new year will start from February 1, 2022, until that time, shipping lines have early preparations, some big carriers such as Hapag-Lloyd, CMA-CGM and ONE have started to stop receiving goods to coastal ports in Guangdong, Hainan, Fujian and Guangxi.

Commodity category mainly includes raw materials that factories use as input materials, utilize empty containers for export. In January of 2021, the regions had congestions when feeder ships stopped operating. This event can happen in the first 2 months of 2022, but with such experiences in the last year, some still hope that shippers will find alternative mode of transport.

China’s Zero Covid policy and Omicron variants

China continues to apply a "Zero Covid" policy in the country, which means that factories, residential areas or entire cities can be locked down because of one infection. This happened in Yantian last May and Ningbo in August, both of them are important ports for the global supply chains.

With the recent Omicron variant, China has enacted new restriction, large-scale testing and lockdowns even though the country already has a high vaccination rate, which means there could be more disruptions in the future for factories and the flow of goods.

International air cargo prosperity

The bottlenecks have prompted importers of the East Pacific to turn to air freight. A record of 78.9 million kilograms of automotive equipment were shipped in the first 10 months of 2021, along with 38 million kilograms of footwear, which is normally shipped by sea.

Significantly, the floorboards of many wide-body passenger planes have been altered to increase cargo capacity. When passenger demand recovers, airlines are aiming to use smaller aircrafts such as Boeing 787, Airbus A350s or A321 that have lower cargo capacity than the 747 and 777-300ER series.

In the recent updates, both of major shipping lines Maersk and CMA-CGM have announced the expansion to Air cargo transportation.

Source: Forbes

Other articles

Contact Us

Booking ALS expert's advice