What will change in the global logistics in 2024?
Global supply chains are facing a number of challenges in 2024
Global supply chains are facing a number of challenges in 2024, including disruptions at the Panama Canal and the Suez Canal, geopolitical tensions, and a shift in trade flows away from China.
Companies are having to adapt their strategies to cope with these challenges and maintain the resilience and flexibility needed to succeed in an increasingly complex and unpredictable environment.
Companies are having to rethink their inventory management strategies. The just-in-time model is no longer sustainable in a world of disruptions, and businesses are starting to stockpile more inventory to protect themselves from supply chain breakdowns.
Inventory levels have stabilized after a surge during the pandemic, but companies are still cautious about hoarding inventory due to the high cost of borrowing.
Imports are increasing as ocean carriers take delivery of new containerships.
The trucking industry is expected to see a rebound in freight volumes this year, but there are concerns about a shortage of truck drivers.
Retailers are increasingly looking to alternative suppliers in countries such as Vietnam, India, and Mexico, but these new partnerships are also facing supply chain bottlenecks.
The Suez Canal and Panama Canal are facing disruptions that are forcing ocean carriers to adjust their routes, adding to shipping delays and costs.
Ocean carriers are having to pivot as a lack of rainfall in Panama forces authorities to reduce the number of vessel transits on the Panama Canal.
West Coast ports are handling a growing share of U.S. container trade, as shipments to East Coast and Gulf Coast ports are disrupted.
Logistics providers are emphasizing flexibility in their strategic plans to cope with the uncertainty of the current environment.