Global supply chain issues remain front and center as economy tries to find its footing

While it has been said many times, especially in recent weeks, it will be said here again: global supply chain issues are front and center in today’s world.

That is not a secret, not when ostensibly everywhere you look there are signs of supply chain disruption just about anywhere. “Anywhere” can be loosely defined along the lines of things like port congestion, truck driver availability, equipment-related challenges (think containers and chassis), among a whole host of others, to be sure.

As we all know, that disruption has seen major capacity crunches, elevated rates (especially for container shipping, and don’t sleep on parcel pricing increases and spot trucking rates, too).

While the pandemic clearly was, and remains, a major factor for the situation we find ourselves in, there is not real magic formula, or panacea, so to speak, that will get us to the other side, except for one thing, that is.

That thing is time, it seems. But that leads to a whole bunch of other questions, as in: how long will it take for the global supply chain to work through its ongoing issues? what will that entail?; how will it happen?; and what happens from the point when it looks like the supply chain dysfunction coast is clear?

These questions are really hard to answer, of course, but we can at least ponder them, to varying degrees.

For now, though, one thing remains very clear, in that no matter who you may talk to that is involved in the supply chain, you are very likely to get the same response or talking points, which goes along the lines of something like: “These are crazy and unprecedented times. There is not much visibility, we are short on supply and transportation capacity, and we have no real forecasting insight and lack the needed visibility to manage our supply chain and logistics operations.”

OK, again, that is a hypothetical made up quote, but that more or less encapsulates the current situation.

And the notes and underlying themes, as they relate to the current situation, are just about anywhere you look these days on TV, in the newspaper, and online. If you want to confirm that, go ahead and Google “supply chain issues” (it will keep you busy for a while).

Another key barometer for current market conditions is here in the form of third quarter earnings results for publicly-traded freight transportation and logistics services companies. One thing, for sure, is these announcements will receive a lot of attention, given that holiday shopping season is coming…actually, no, it is here already. Get shopping, people, don’t wait until you are in full-blown panic mode and dealing with delivery cut-off dates online or empty shelves at the mall (for those that still frequent them, that is).

As are always the real questions these days: where are we right now, and where are things going on the logistics and supply chain front?

Forecasting is far from my thing, as my fantasy football track record can confirm, but when speaking to those on the front lines of logistics, a standard reply is that things will remain especially uncertain at least through the first half of 2022, if not longer.

While the current situation is a lot to ponder, it also is incredibly important. I have noted, in this space before, that, in normal times, the supply chain just hums along, getting goods from A to B, and staying out of the spotlight, if you will. Well, that is not as much the case these days, due to the many aforementioned challenges we are facing. I, for one, am optimistic about the sector’s ability to get the job done, as the spine of global economic movement. Things may feel very dire now, but it won’t always be this way, and we will learn from it.