Optimism looms for logistics in 2023

Shippers of grain, food and other products expect to face better prospects for logistics in 2023, hoping much of the COVID-induced issues are in the past as well as a nationwide strike by railroad workers that was averted by legislative action.

“Logistics as we know it has been spun out of rhythm over the past two years, with supply and demand discrepancies, low reliability, global port congestion, labor shortages, capacity constraints and more all coming together to put pressure on rates,” shipping giant A.P. Moller – Maersk said in a recent report. “While the circle of inflation affecting freight rates and freight rates affecting inflation is set to continue in the short term, the outlook is positive for pressure coming down in the not-too-distant future — albeit not to the levels seen before COVID due to inflation’s impact on operational costs.” Read more