LOGISTICS SECTOR CONTINUES TO CHALLENGE THE PANDEMIC
Little by little, the world economy has begun to reactivate with the reopening of various activities and with this consumption is increasing putting greater pressure on the production centers that are mainly located in Asia and obviously on the logistics sector that has been forced to fight against adversity to be able to supply buyers.
Precisely the Economic Commission for Latin America and the Caribbean (ECLAC) predicted a few months ago the expansion of world trade thanks to three interrelated factors: i) the increase in the prices of raw materials, ii) the recovery of demand in China , The United States and the European Union and iii) the recovery of economic activity in the region.
Faced with this, companies that produce in Asia have been looking for solutions and alternatives so as not to be left behind in this economic reactivation, especially because the Christmas shopping that could represent the main profits of the year is coming. This undoubtedly represents a challenging scenario for the logistics sector that has all this pressure added to the increase in the costs of moving cargo.
According to reports from the logistics sector, the pandemic has generated a crisis mainly due to congestion and the lack of space in shipping companies due to the fact that consumers have changed their consumption habits and the exponential increase in electronic commerce. But also due to the closures of factories and ports that were decreed in Asia in 2020, with partial closures in 2021, which have delayed production and of course deliveries, affecting the increase in costs that have even put the profitability of the company at risk. business.
And although the pandemic has been overcome, there are still latent risks such as variants of COVID that could cause new closures in case of increasing or worsening infections.
A recent report by CNN Business highlights that the vast network of ports, container ships and trucking companies that move goods around the world is in crisis and the cost of shipments is skyrocketing, which they regard as worrying news for consumers. retailers and shoppers, especially around Christmas time.
CNN Business notes that more than 18 months after the pandemic, the disruption of global supply chains is worsening, fueling shortages of consumer products and making it more costly for companies to ship goods where they are needed.
Major shipping companies like Hapag-Lloyd forecast that the market situation could ease in the first quarter of 2022 at the earliest. However, they consider that the crisis will continue and consequently the cost of moving cargo increases, which could trigger an increase in the price of products for the final consumer.
The truth is that it has been necessary to reconcile demand with production, and for this the logistics sector plays a role of great relevance and has many challenges ahead to be able to meet deliveries on time and be very ingenious to achieve reasonable prices, without lose your profitability.