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News & Media
Apr 2022
Global supply chain disruption to continue into 2023
Welcome to the half century edition of Service without Boundaries, the U-Freight Group’s quarterly newsletter.

Nothing that I have read in the first four months of 2022 leads me to conclude that supply chain disruption is likely to end any time soon.

The combination of factors at play, including continued congestion at ports across the world, the possibility of a port labour dispute on the US West Coast, the Covid-19 situation in China, and a lack of new container tonnage coming into the market, are all likely to prolong disruption and keep rates high.

Optimists suggest that the disruption will continue, for the next 12 months. Pessimists say it could be all of 2023 also.

Personally, I hope that 2023 will not be as bad as 2022, but I'm sure rates will remain elevated, and we’ll continue to not be able to rely on a seamless supply chain.

Some believe that the current fall in spot container rates shows that the market is improving from a customer perspective, but I believe that prices will increase again. Global supply chains are broken in many cases and the disruptions, and lack of predictability that we struggled with for the past two years are not going away any time soon.

Our advice to our customers is to plan for disruption for at least another 12 months, whilst diversifying the modes of transport they use within their supply chains. That might mean implementing sea/air solutions or switching to more expensive air freight to compensate for some disruptions in ocean freight.

One thing is certain, the U-Freight Group will work closely with our customers to minimise the effects of the disruption caused by the factors that continue to impact on the efficient operation of their global supply chains and the role we play in managing those chains.

I hope that provides you with some assurance, but please don’t hesitate to contact me if you would to discuss further. I also hope that you enjoy the contents of our latest newsletter.
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