The 2:00 Minute Warning

Over the last four months we have been inundated with questions from shippers about what to expect in the freight markets in 2022. We addressed many of these questions in our December C-Level Look at The Road Ahead webcast, but there remains a high level of uncertainty about issues that could have a significant impact on your supply chains.

So for those shippers who are still asking: “What should we expect in the coming year?” here are three things that should definitely be on your radar screen.

The Implications of Vaccine Mandates

On January 7th the Supreme Court will be holding an emergency hearing on the vaccine mandate issue. Various appellate courts have issued conflicting opinions and there is uncertainty over whether or not OSHA could impose a vaccine mandate on companies with more than 100 employees. If the Court allows for the imposition of a vaccine mandate, suffice it to say, it could have a very, very significant impact on supply chains. This has nothing to do with where people stand on the issue of vaccines. It has everything to do with the fact that the experts and Associations such as the ATA and OOIDA have warned that the imposition of a vax mandate will significantly reduce the number of truck drivers and workers at the ports, warehouses and distribution centers in this country.

Ongoing Tight Capacity

Expect capacity in the air, ocean, trucking and parcel markets to remain very tight for at least the next two quarters, if not the entire year. If you listen to the financial analysts as well as the experts who track the markets, shippers should expect to see increases in the high single digit, or into double digit increases. And shippers should also fasten their seat belts as carriers roll out accessorial charges that could significantly increase the cost of moving your freight.

Continuous Supply Chain Evaluation

More and more shippers are recognizing the need to map their supply chains and identify threats and risks that could cause costly disruptions. As we covered in our interviews with MIT Professor, David Simchi Levi, evaluating your supply chain is not a once a year proposition. Since supply chains are dynamic and continuously changing, smart shippers will use dashboards and KPIs that highlight potential issues. If you have questions or would like more information about how this evaluation process works, we encourage you to take advantage of our Rapid Assessment. It has proven to be a very effective tool in evaluating your supply chain and identifying risks or areas which can be improved.

And if you haven’t yet listened to our C-Level Look at The Road Ahead webcast, we encourage you to check it out. We featured an all-star panel with several CEOs in the logistics industry and the Journal of Commerce’s ocean expert and they had some great insights on what shippers can expect to see in 2022.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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