International shipping challenges to expect in 2022

After many challenges that 2021 brought for the shipping industry, many wonder what 2022 has in store. While many experts are pointing out that most problems of 2021 have not been resolved, some are still hopeful and focus on the positive signs. The balance of the dry cargo and container market should remain stable in the new year while freight rates should also improve. In addition to this, many are hoping that the increase in vaccination should decrease all the negative effects of the pandemic. If you need to find cargo companies in Kuwait for your business, you should know about all the international shipping challenges to expect in 2022. After all, these past years have been difficult enough due to the pandemic, so you need to be prepared well. 

International shipping challenges to expect in 2022 – Decarbonization and energy transition 

Global warming and all its related issues have been a hot topic for decades already. All the companies that directly have effects on global warming need to address this problem seriously. It is possible to reduce the carbon footprint in logistics. Not only is it possible but is also highly recommendable. It is important to reduce greenhouse gas emissions. As someone who directly is involved with shipping internationally or closely works with them, they need to understand that certain adjustments should be made. For example, companies can change the fuel mix and reduce operational carbon. Other adjustments include the following. 

  • The environmental footprint of new technology 
  • New ship designs 
  • Alternative fuels 

All the shipping companies and facilities should hire an expert for this matter. This way, they can help with reducing the operational carbon. Lastly, the industry should refrain from relying only on oil tankers and coal carriers. 

International shipping challenges to expect in 2022 would be carbon footprint
Shipping companies need to reduce their carbon footprint

Drastic climate changes 

Following the previous topic, global warming is a serious issue directly affecting the shipping industry as well. Climate changes present a huge problem. Extreme weather changes might hinder some shipping routes. The worst-case scenario would be completely closing off some routes due to unpredictable or extreme weather changes. For example, the closure of the Suez Canal. Many floods, hurricanes, and cyclones in recent years have had a direct effect on the shipping industry. These natural disasters cause frequent interruptions in both coastal and hinterland infrastructures. The shipping industry and governments should invest and pay attention to green shipping options. In addition to this, if you are looking for movers and packers Kuwait, make sure to see about their environmental policies. Customers should also demand more eco-friendly shipping choices in order to make a big change. 

International shipping challenges to expect in 2022 – the pandemic 

As mentioned, the pandemic presents a huge problem still in 2022. Many experts are hoping that the vaccination would show some positive effects. Additionally, many medical professionals have been adamant about vaccination and its significance. The pandemic certainly poses a big challenge, mostly because no one knows when it is going to end. Unfortunately, the new variants are not helping this matter. Many countries are again implementing serious restrictions that may have negative effects on the shipping industry. Furthermore, certain countries are closing their borders. If you want to send your shipment to a certain country, you need to check all the entry restrictions. However, these restrictions are always changing so make sure to check every single day before you send your shipment. For this reason, if you are interested in international shipping Kuwait, first see all the corona updates and restrictions. 

the map of the world
The pandemic is still a huge problem

Decrease in manpower 

Since the pandemic is still a huge challenge, you can expect a decrease in manpower. All the employees are at risk of getting infected. If they test positive on coronavirus, they need to be isolated, no matter if they have any symptoms or not. This will have negative effects on the shipping company. As the manpower is reduced, it can lead to delays in shipment. Other employees will need to work more in order to meet all the shipment quotas. In addition to this, if you have delays in shipment, your company will lose money. Customers might complain about it as well. Negative reviews can also have negative effects on a shipping company. Of course, the health and safety of all the employees should always be the top priority. It is important to provide safe working conditions for your employees. 

International shipping challenges to expect in 2022 – decrease in warehouse capacity 

Another challenge because of coronavirus would be the decrease in warehouse capacity. As mentioned, because of the new variant, many countries are imposing new restrictions. This will affect the demand for shipping. If the demand is low, the warehouse capacity will also decrease. In addition to this, if employees test positive, there will not be enough people working in the warehouse. This can also decrease the capacity and lead to shipping delays. Unfortunately, there is no way to accurately predict all the losses. It is impossible to tell if someone will test positive or not. Furthermore, it is impossible to predict which country will close its borders. This all can lead to a serious decrease in profit. Many companies had to close or proclaim bankruptcy because of the ongoing pandemic. 

two sticky notes on the door
The pandemic can temporarily suspend businesses

What to do? 

These would be some of the international shipping challenges to expect in 2022. It is important to address the problems of carbon footprint and decarbonization. As you can see, all the drastic climate changes and natural disasters have a direct effect on the shipping industry. In addition to this, the ongoing pandemic is still a huge challenge. Many experts are hoping that vaccination will show a positive change and lead to the end of this pandemic. However, until this happens, it is important to secure safe working conditions and support for all the employees. Most of these challenges are from previous years. Therefore, most companies have already come up with methods to overcome these challenges.