The global supply chain is still recovering post-pandemic, and supply chain disruptions continue to cause issues. Inflation, geopolitical pressures, climate change, weather events, the recession, and security issues all impact our access to goods and how they travel from one destination to another. Amid these disruptions, certain supply chain trends are emerging that are shaping the industry.
Government Intervention
Throughout the current supply-chain crisis, various governments have insisted on a hands-off approach. However, recent data and reporting indicates that there is a high possibility of government intervention in the future, as rising inflation and geopolitical events continue to disrupt the supply chain.
Shortages vs. Oversupply
While almost every retailer, distributor, and supplier had to deal with shortages over the past two years, we’re now dealing with the opposite. Many of the goods that stores ordered one or two years ago are finally arriving, creating overstock and extra inventory. Inflation is also affecting people’s spending habits, causing an oversupply of goods.
Increased Supply-Chain Resilience
Logistics companies have also started working with government agencies to improve supply-chain resilience. These companies have proactively approached government agencies to consult on making supply chains function better for the U.S.
Declining Labor Market
Labor issues have been affecting companies for the past three years and are just as prevalent in the shipping industry. Labor shortages, strikes, and changes in hiring practices are causing further supply chain issues and disrupting the market.
Climate Change
Ecoclimate issues also present another significant roadblock for international shippers. Low water levels, heat waves, hurricanes, and extreme weather conditions are causing delays, and affecting the ability of shippers, logistics managers, and freighters from distributing goods around the world.
At Xcel Delivery Services, we are committed to delivering our services with care, precision, and professionalism throughout our everyday operations. Our small delivery company has grown into a large transportation and warehousing company that can help other local companies grow, expand, and meet demand. Call us today at (888) 743-0067 or reach out to us online to find out how we can help your company compete in the global marketplace.
