International logistics: Opportunities and obstacles in 2023
This post was written by Forceget Digital Freight Forwarder.
International shipping logistics are sure to evolve in the upcoming year bringing a variety of opportunities and obstacles for freight forwarders and their clients. Logistics companies looking to expand clientele and improve their services will need to be aware of the potential obstacles and opportunities in the upcoming year. When it comes to maximizing profit, companies that deal in international shipping need to look ahead to the potential problems and possibilities of 2023. Here are the things to look out for in the upcoming year.
Logistics Obstacles in 2023
Worldwide labor shortages
Shipping ports around the globe are experiencing labor shortages that will make it difficult for products to ship quickly and efficiently. Large players in the global economy like China, the US, and Australia have already reported large labor shortages due to a variety of factors including Covid safety protocols. The labor shortage is not expected to get any better in 2023. However, many experts believe that the labor shortage will become less detrimental to international shipping as the demand for products decreases during the recession. But for the first half of 2023, labor shortages are continuing to affect international shipping speed and efficiency.
2022 saw the highest number of cyber-attacks on international logistics to date. With the high number of breaches in the previous year, logistics companies will need to put a premium on securing their information online. Breaches have had a detrimental effect on both the shipping process and the private information of customers. If logistics companies want to secure their client’s information and keep customers happy, they will need a plan to bolster their cybersecurity in 2023.
Changes in customs and compliance regulations
2023 is likely to see changes in compliance regulations that may make it more difficult to pass products through customs authorities. Tariffs are expected to remain high throughout the year and companies will likely be expected to provide more transparency when shipping goods internationally. Reporting obligations on imports and exports are also expected to change and companies must stay informed on new regulations imposed in the new year. Data collection and management will be important for international shipping companies who want to keep shipping times down.
Logistics opportunities in 2023
A return to pre-pandemic freight costs
The high freight costs of the past few years will begin to normalize in 2023 as the pains of the pandemic start to become nonexistent. The spike in fuel prices in 2022 saw an increased cost for international shipping. Now that fuel costs are drastically lower than they were a year ago, companies can expect the cost of doing business to drop significantly after the first quarter. While the first few months of the year may still have increased costs due to products purchased and shipped in late 2022, the overall cost of international shipping is expected to fall closer to pre-pandemic levels.
Influx of Technology
2022 saw a variety of new technologies implemented in international logistics including online ordering, automated instant quotes, and transparent tracking systems that improved the user experience. 2023 will come with plenty of opportunities to use technology to improve data collection and transparency for customers that make shipping easier for both large retail customers and Amazon FBA shipping. Technological advances may provide the answer to the labor shortage and the impending decrease in demand expected in 2023.
International shipping has normalized cycles
The pandemic caused irregularities in shipping schedules and often made it difficult to find a carrier to transport goods to port, ship internationally, and deliver products once they reached their destination. Now that the effects of the pandemic have decreased significantly, carriers of all kinds have normalized their shipping cycles and are expected to provide more consistent shipping schedules. Logistic companies can utilize this normalization to cut down on costs and shipping times by utilizing carriers that deliver their products efficiently. As 2023 progresses, look for these normalized cycles to bring stability to international shipping especially shipping from China to the US.
A focus on cost containment
The incoming recession and high inflation rates are sure to hit the logistics industry hard in 2023. International shipping companies will need to focus on keeping costs manageable for customers both big and small. A down year is a perfect opportunity for logistics companies to switch their focus from growing their business to keeping the cost contained and their shipping practices sustainable. 2023 will come with a lot of economic challenges that international shippers will need to overcome. Focusing on keeping costs down is a must for international shippers who hope to retain customers through the impending recession.
A difficult economic year allows companies to find different ways to cut costs in the long run with sustainable shipping practices. Companies that offer greener options in their shipping services may have a better chance of customer acquisition and retention. Minimizing the impact made on the environment is a surefire way to gain public favor that will continue to benefit businesses long past a difficult 2023.
Much like the last few years, 2023 comes with a level of uncertainty that can have lasting effects on international logistics. While international shipping costs have dropped significantly since the peak in 2022, the volume of freight is expected to decrease in the upcoming year due to continued high inflation and the potential of a global recession.
Regulations around the globe will continue to affect international logistics. Many trucking companies across the globe have been hit hard by the economy and regulations continue to make it difficult for ground freight to be as efficient as possible.
International Logistics companies will need to stay informed to overcome obstacles and take advantage of opportunities in 2023. Preparing for any possible uncertainty in the upcoming year will ensure that your business stays on track for success in 2023.
Forceget Digital Freight Forwarder offers a variety of features that can help international shippers navigate the opportunities and obstacles of 2023. Forceget’s platform offers real-time tracking, automated inventory management, and instant quotes to improve efficiency and user experience. Additionally, our platform offers a variety of shipping options, including Amazon FBA fulfillment and smaller shipments, to meet the needs of customers. By utilizing the cutting-edge technology and innovative solutions provided by Forceget Digital Freight Forwarder, international shippers can stay ahead of the competition and navigate the challenges of 2023 with ease.