The disruption to global supply chains, which began at the start of the Covid-19 pandemic and had a significant knock-on effect on businesses around the globe, looks set to continue throughout 2022.
This is one of the key findings of the annual “Logistics Report” from business group Logistics UK. A summary of which is available at HERE (certain details are required).
The report has found that global and local factors have caused issues for all elements of the supply chain, with issues such as disruption to the supply of shipping containers, a shortage of heavy goods vehicle (HGV) drivers and a lack of semi-conductor microchips all having an impact on the way that goods are moved around the world.
Logistics UK chief executive, David Wells, said: “The past two years have been a period like no other for our supply chain with disruptions forcing constant changes in the ways goods move both domestically and internationally.”
It is, he went on, testament to the dedication of staff across the supply chain that solutions have been provided for problem after problem with minimal disruption — from the displacement of shipping containers to a lack of HGV drivers to move goods — so that the highly interconnected supply chain has remained largely intact.
While the report highlights signs of recovery, it also warns that significant increases in fuel and freight costs continue to cause problems, given that logistics businesses traditionally operate on very narrow margins of around 1%.
“Cost effective and efficient shipping is no longer guaranteed under the previous working model and the industry’s reliance on just-in-time management systems will need to shift to using greater storage capacity,” Mr Wells concluded.
