Outlook, trends and hot topics for transportation in 2022

From Freight Waves. As 2021 draws to a close, companies across the logistics industry are beginning to wonder what next year will look like. Shippers are eager for a break from sky-high rates and severely constrained capacity. That break, however, may not be coming anytime soon. “I think we’re going to see slow improvements. There…

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From Freight Waves.

As 2021 draws to a close, companies across the logistics industry are beginning to wonder what next year will look like. Shippers are eager for a break from sky-high rates and severely constrained capacity. That break, however, may not be coming anytime soon.

“I think we’re going to see slow improvements. There are several factors that are just driving this to be a sustainable problem,” said Jim Monkmeyer, President of Transportation & LLP, DHL Supply Chain North America.

Many of the challenges facing the supply chain today — including labor shortages and changing consumer habits — have either been directly or indirectly caused or exacerbated by the COVID-19 pandemic. These issues are complex, and there isn’t a quick solve.

“The economy is on fire. We are spending on products instead of services, which drives freight up. Plus, we have a labor shortage,” Monkmeyer said. “We used to say we had a driver shortage … now, it’s across the board in supply chain and all other sectors.”

With unemployment claims at their lowest level in 50 years and the unemployment rate down to 4.2%, companies are unable to fully staff operations. Looking ahead, a supply of talent is a critical part of returning to normal and keeping inflation down. But there is hope.

Monkmeyer urges companies across the industry to stay focused on talent and prioritize their workforces in the new year. This may mean upping hiring incentives, strengthening the focus on health and safety protocols, and ensuring a positive and inclusive working environment.

“Keep the good people you have. Good pay and incentives are important, and you also need a safe work environment, a positive work environment,” Monkmeyer said. DHL Supply Chain is also very focused on diversity and inclusion, and has earned a number of awards recognizing it as a great place to work and top employer.

Beyond labor, Monkmeyer expects digitalization and sustainability to become increasingly hot topics in 2022.

See the complete article online at Freight Waves.

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