A Response: Supply Chain Challenges Likely to Remain Well Into 2022

This has been a difficult time in the transportation industry – one we certainly haven’t seen to this magnitude before. As this Transport Topics blog points out, the holiday season is just around the corner, reports of the delta variant spreading, the driver shortage persisting, shipping prices on the rise and the additional changes the industry can inevitably bring about. A lot is happening in the industry. We see our team working harder than ever on our operations floor and from their home offices every day. I truly couldn’t appreciate our team more at this time.

According to Port of Los Angeles Executive Director Gene Seroka quoted in the article above, transportation and logistics employees are all pushing at top speeds regardless of what supply chain segment they work in. He continues, “warehouses are overflowing, rail yards and carriage are maxed out, chassis and containers continue to be hard to come by. Ships are coming and waiting at anchor to get worked. Factories are behind in orders, even though output is at record levels.”

As I’ve talked about in previous blogs, online sales have been increasing over the past decade and with the COVID-19 pandemic that was (and is) especially true. Then there are total or partial shutdowns occurring in various points of the world when COVID surges, causing a halt in the importing and exporting from those areas, causing additional delays and issues across the supply chain. IHS Markit transportation economist Paul Bingham said, “these disruptions are happening to an already-stressed system, with no spare capacity or spare time to make up for delays.”

The entire industry is pushing forward despite the daily challenges that have plagued the supply chain. Additionally, I find that the resiliency of our industry will be what carries everyone through this tumultuous time. No, we haven’t seen this exact situation before, but we have persisted through every economic downturn, provided through every natural disaster, pivoted through every roadblock thrown our way and we’ll continue to do so. This industry is the lifeblood of our global economy and we’re essential to keeping the supply chain moving. So, we continue working, looking for the silver lining and the areas of the market that are improving.

I want to leave with a note of thanks. First and foremost, we cannot thank our Kingsgate Family enough for working so hard every single day. Secondly, we thank our carriers for being the key to keeping our promises to our customers. Lastly, we thank our customers and partners who trust us to safeguard and deliver their freight in this difficult time, providing us patience if we hit bumps in the road. We could not continue persisting without all of you!

All the Best,

Jeff Beckham