U.S. Supply Chain Ringing in the New Year! 2022

Believe it or not, 2021 is over and 2022 is upon us.  This last year seemed to be an extension of 2020 in terms of new ways to get work done as we navigate the ongoing COVID pandemic and as some call it, the post-COVID environment.  The challenges created by COVID have certainly impacted the supply chain… first beginning overseas, then to U.S. ports, to middle mile and ultimately to final mile deliveries.  Congestion, employment and capacity constraints put pressure on shippers, carriers, retailers and e-commerce in a way we’ve never quite experienced before.

While none of us have a crystal ball to forecast exactly what 2022 will look like, we’ve been examining trends and listening to what our clients and carriers are telling us.  Based on that, I’ve put together a short list of things to watch for in the new year that may help you navigate, or at the very least, have a better understanding of why the market is doing what it’s doing.

Here are the top five things we all should be paying attention to:

The 800 pound gorilla, however, is when will we see some relief in the congestion at the ports…in particular the west coast ports?  Where’s that darned crystal ball?   Unfortunately, none of us have one of those, so I’ll give my best guess based on a few factors.  One, retail imports surged to historic highs in 2021.  My guess is that retailers will have backup plans in 2022 that are slightly less reliant on goods from Asia.  Two, many ports have gone to a 24/7 schedule and as long as they can find people to work, this will provide some slight relief; and three, I do believe that if there is no relief in sight, the U.S. government will provide emergency resources on a scale unlike anything we’ve ever seen.  Based on all of that, I predict that we will start to see some wholesale relief by end of Q2 or early into Q3.  There’s no magic wand to fix this issue.  It will take time and unfortunately, it will be well into mid 2022 before we can expect to see anything that resembles normalcy at our U.S. inbound ports.

These trends and likely scenarios will most certainly impact the U.S. supply chain in one way or another. Whether you’re looking to ensure the most effective and flexible network possible, or simply trying to develop better, longer lasting relationships with your carriers, Green Mountain can help.  If you have any questions, or would like more information, please reach out to us for a brief meeting where can we provide more detail on potential solutions.