Will 2022 see the end of the global supply chain crisis?

Will 2022 see the end of the global supply chain crisis?

Earlier this year, a local COVID-19 outbreak in China led to a shortage of drivers, air cargo warehouses and more than 120 container vessels stranded

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Earlier this year, a local COVID-19 outbreak in China led to a shortage of drivers, air cargo warehouses and more than 120 container vessels stranded. Large ports around the world began to experience major delays that caused container ships to queue for several days in an unprecedented congestion. Not only that, the sanctions imposed because of Russia invading Ukraine forced more than a million containers to travel to Russia via Russia to make their journey by sea instead. Supply lines for nickel, aluminum, wheat and sunflower oil also collapsed, leading to a sharp rise in commodity prices.

Global supply chain

But what happens now? Does the crisis seem to be easing or are businesses still facing the bulk of these issues? In this article, five members of Opportunity Network, the world’s largest private digital network for CEOs and investors, share their experiences navigating the global supply chain crisis. They share whether they see improvements in their respective locations, as well as their opinions on when the crisis will end and why.

1. Jamie Teets, Founder and CEO of Transportation One LLC, USA

Jamie Teets

From now on, we see supply chains recovering, but this is relatively speaking. The transportation market is starting to slacken where there is enough capacity to move the cargo, whereas this was not the case last year. Demand (freight) was much higher than supply (truck capacity).

Based on abundant stock levels, lower consumer spending, less stimulus to consumers, increased capacity (relative to demand and new capacity entering the market), price declines in the market (spot and fixed cargo mixes), and various other factors we believe this year will be many be easier to move cargo for supply chains in North America. We’re seeing this happen now, fast.

2. Charles Nwodo Jr, HUB at XL Africa Group Ltd, Nigeria

Charles Nwodo Jr.

The supply chain crisis will not end in 2022 and the consequent disruptions in international trade and commerce will continue well into the future. While the global logistics industry will eventually recover and flourish, the landscape of the future will be defined by the stories of firms that identify and seize the opportunities in the current predicament and those that do not.

The future of the supply chain industry will undoubtedly be shaped by technology, new international trade rules and protocols above all we currently know. For companies in the logistics value chain, the ability to adapt to the changes while remaining organizationally agile, operationally efficient and cost-competitive is the recipe for success.

3. Chen Vovchenko, Head of Customer Success at Eezyimport, Israel

Chen Vovchenko

2021’s supply chain industry was a mess with its shortage of container, space shortage and air shipping price fiasco. The big question is whether 2022 will look different.

The answer? Probably not.

The good news is that the supply chain industry is likely to recover as this disruption has also been the inspiration for new and exciting digital solutions, and more technological innovations are likely to follow in the coming months. Despite its somewhat late blooms, the digital revolution in the supply chain will continue. From cargo booking to the customs clearance process, warehouses and last mile delivery, the race for the ultimate digital solution is at full speed, and the winners will be the customers!

4. Rafael Molho, Managing Director at Tradecoup Ltd, Greece

Rafael Molho

The supply chain situation will worsen through the rest of 2022 and 2023 as the war in Russia continues and the economic war between the US and China becomes more aggressive. The US will continue to keep transportation costs at high levels while China will maintain the energy zones of their factories to be able to sell higher and for better margins. Meanwhile, all the countries will continue to keep the scarce and necessary raw materials for themselves.

Considering all of the above, as well as the higher green energy costs, I believe these factors will continue to negatively impact supply chains for at least the next year.

5. Shefiq Abdulla, CEO and Director at Telephony Communication Technologies, UAE

Shefiq Abdulla

We expected hockey stick growth as the economy recovered sharply from the pandemic-induced shock. On the contrary, the rapid upswing after the pandemic met the Russia-Ukraine war and we have seen investors lose heavily in public markets. The revised macroeconomic outlook now looks bleak across the globe, and as a result, demand for the finished products will be significantly impacted. Thus, the reduced demand will eventually compensate the supply shortage in the market. In addition, manufacturing centers operate with their maximum output capacity to cover the backlog in the supply chain.

By the end of 2022, things are mostly expected to return to normal. However, the chip shortage is likely to continue after 2022. The post-pandemic digital transformation across industries has forced more innovation which also requires more hardware infrastructure to be built around, hence the chip shortage is still a concern.


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