1. Trends that will drive the shipping and logistics sector in the months to come?
Inflationary trends and the expected slowdown in the demand means greater visibility and transparency in the supply chains will be required to manage the optimum level of inventories at the same time manage any potential disruptions arising due to a surge in COVID infections or geopolitical developments. Container shipping freight rates have already registered a sharp decline in 2H22 on account of slowing demand and easing supply pressure. Shipping lines will shift back the focus on capacity management to stabilize the freight market. Shipping companies will also have to prepare to meet IMO emissions regulations including Carbon Intensity Indicator (CII) to measure the emission. This is expected to have cost and time implications for both shipping companies and shippers.
The logistics and shipping sector will continue to adopt new technology and automation to mitigate potential risks arising due to the non-availability of labour and constraints arising due to the limited mobility of the workforce.
2. The current geo-political scenario and its impact on the global supply chains?
The current geo-political scenario has added to inflationary trends and supply chain uncertainties for key industrial raw materials. This would mean developing alternative supply sources which could lead to an increase in logistics costs and transit times.
3. What will be the major challenges the logistics community will face in the days to come?
Compared to 2021, disruptions faced by the Shipping and Logistics industry in 2022 were less severe, although not fully stabilized. In the immediate and short-term, the industry should be prepared for volatility. This could be the new normal in the immediate and short term. Therefore, the focus would be to develop flexible supply chains which could help in reducing the cost and transit times
4. Scenario of trade among south Asian nations?
South Asian nations are facing similar economic and social pressures arising due to COVID-19 and the Russia-Ukraine conflict. In the current scenario, intra-regional trades, which have the advantage of proximity to production and consumption centres could help in developing more resilient supply chains and managing total logistics costs. There is a clear need for better cooperation among the countries in the region to reduce barriers and promote regional and bilateral trade.
