# 2022 Ocean Shipping Outlook

## 2022 Ocean Shipping Outlook: 5 Ways to Avoid Supply Chain Disruption
As capacity remains constrained and demand is forecasted to increase throughout the year, ocean shipping has become difficult to manage. Visibility is key.

## What challenges will ocean shipping create for supply chains in 2022?
Like other modes of transportation, ocean freight comes with its own profile of benefits and challenges. The industry is currently facing bottlenecks as capacity continues to remain constrained. Global shipping demand is also forecasted to increase throughout the year. With COVID-related shutdowns and delays occurring at major container terminals around the world; closures, congestion, and their impacts on lead times have become difficult to predict - so it is important to be prepared.

### Examples of at-risk industries relying heavily on ocean freight:
- Bulk Goods Industry
- Electronics Industry
- Automotive Industry
- Construction Industry

## Record High Rates
The volume of ocean cargo saw a massive uptick since the second half of 2020, in large part due to the ongoing COVID-19 pandemic. The industry is seeing record high ocean cargo rates of 466% on the previous year (2020), constricting capacity and increasing demand.

### What’s causing this upsurge in ocean freight prices?
- Trade restrictions between nations
- Worker/labor shortage due to lockdowns
- Fewer cargo ships and containers
- Increased demand for e-commerce and consumer products

## Container Imbalance
One of the biggest threats to capacity and smooth movement in the ocean cargo industry is the inability to source containers. Shippers are currently facing a shortage, also known as a container imbalance.

Without containers, the ability to ship goods via ocean freight is not possible. The large increase in consumer products means too much freight and not enough containers to ship it. The result is an inability to efficiently move inventory and a container shortage.

## Lack of Visibility
When it comes to visibility, the traditional, and often manual processes of ocean freight leaves shippers with lost time and increased costs. When shippers don’t receive ETAs or alerts of containers entering or exiting ports, service teams are unable to communicate critical information to their customers. This leads to poor decisions, disruptions in transportation, and poor customer service.

## Port Congestion
Port congestion and delays are also common issues overtaking the sea freight industry. Containers can be held up for weeks, even months at a time, largely in part due to the shortage of truck transportation from the port. Consumer electronics, construction material, and automotive parts are all feeling the effects of port congestion in 2022, causing an increase in consumer prices.

## Truck Driver Shortage
The shortage of truck drivers is dramatically decreasing the rate at which containers leave the port yard. The driver shortage can be linked to the increasing average age of truck drivers, with more drivers retiring compared to new hires coming in.

## Here’s the 5 ways...
### 1. Enable Supply Chain Visibility & Exception Management
Ocean visibility platforms allow retailers, wholesalers, and manufacturers to proactively mitigate late arriving inventory and raw materials to minimize their internal supply chain disruptions.

### 2. Improve Margins by Eliminating Ocean Fees & Penalties
Ocean visibility software provides container shipment tracking alerts and allows those to manage fees in both the short and long term.

### 3. Build More Productive Carrier Relationships
When companies are notified of shipment ETA’s and receive regular updates, they can proactively work with their carriers to reset expectations and avoid disruption.

### 4. Employ Actionable Intel for Intermodal Container Visibility
Intermodal visibility empowers shippers to track containers even during transitions from ocean, port, rail, and trucks.

### 5. Accurate Data
Explicit information gives insights to organizations allowing for better forecasting, planning, and key milestones to improve decision making and increase operational efficiency.