Logistic predictions for 2022

We started 2022 more than 2 weeks ago, but things don't seem to be clearing up at all. There are several scenarios for how "hostilities" may unfold from now on. The worst case scenario is a very aggressive mutation in the Covid-19 virus, which could lead to economic restrictions and quarantine. The most positive scenario is that, with wave 6 and the Omicron variant, most people will go through the disease - thus achieving that desired group immunity, which will make the virus no longer transmitted, becoming treatable, such as seasonal flu.

Whatever the predictions about the virus, in Logistics, we need to be able to make predictions about the business we run. Forecasts can be made on a historical basis (which does not help us much at the moment), with one eye on the market trend and the other on the commodity market.

Market trends are in a slight decline in consumer products, in a slight increase in luxury goods, a decline in the car market, an increase in the real estate market. That is, depending on the industry, we can see that the pandemic does not have the same effect for everyone.

But we can all see the massive rise in raw material prices, which is now turning into rising commodity prices. This will lead (if we have not already reached this point) to the price growth of our finished products. In some cases (such as building materials), customers will continue to buy, in others they will start thinking twice before spending money. Overlapping with these price increases, the energy crisis and the rise in gas and electricity prices have also appeared - which will further change the evolution of prices and the behavior of markets.

Transport is also one of the hotspots of the economy because the pandemic period has increased the profits of carriers, due to the worldwide lack of containers and by increasing the demand for post-quarantine transport. If we refer to transport, we see a significant increase in prices, both for sea and road transport. In short, the predictions are that we will have a lot of work to do to improve the performance of our systems, reduce losses, and try to make money for our companies. The prediction for 2022 is: work, work and work again