Much like any other business sector, the Maritime industry is not immune to the realities of a high inflation market. In recent years, the pandemic has been most to blame for the havoc on the global supply chains ranging from slow port turnarounds to worker shortages and delays. The good news is that as the demand slows and the peak fails to materialize, the current shipping costs have decreased by 61% over the last year. The bad news is that, according to recent maritime industry statistics, it is still 170% higher than pre-pandemic levels.
Overall, inflation is something that is experienced when the money supply of an economy grows faster than the economy’s capacity to produce goods and services. In today’s market, the production of goods and services is unchanged, but the money supply has risen significantly, causing some harsh inflation effects on the maritime industry. However, this also indicates that bottleneck shipping is not stuck in the fate of the economic waves; With the implementation of modern logistics and efficiency optimization, maritime inflation can be combated right at the starting lines – collectively leading to lower shipping costs, fewer delays, and higher consumer satisfaction.
An efficient supply chain is one that meets consumer expectations in a cost-effective manner. Unfortunately, in this near deemed 2022 recession, the blend of reduced shipping costs and speedy delivery are at odds with one another. Though it can be easy to blame the economy itself for such issues, shipping inefficiencies can have a lot to do with the adversities, especially when inflation is caused by a rise in money supply rather than the inverse. This can be caused by several notable factors, such as:
Overall, a high inflation market coupled with a boom in consumerism is one that has caused significant supply chain disruptions and bottleneck challenges. In addition, the inefficiencies in shipping infrastructures are likely leading to some of the rapid inflation realities being experienced right now. In summary, building operations on siloed systems and a luddite mindset toward innovation, it all equates to fueling high inflation and stagnancy. But by investing in upgraded technologies that meet demands in the middle, these sustainable, modern logistics can be the very stepping-stones to offer high inflation pushback.
In the end, the market is always evolving and always shifting; and the best way to leave positive imprints instead of becoming a part of the inflation problem itself stems from advancing connective software, accentuating resources, and above all, remaining ten steps ahead through the art of technical adaptability.
OpenTug delivers the visibility and connectivity needed for shippers to fully utilize inland and coastal shipping.