UK logistics giant, EV cargo says that shipping challenges will last for years to come
In the continuance of rising costs and supply chain challenges, the UK’s biggest privately-held logistics business says shipping issues will last for many years. EV Cargo operates both in the UK and internationally, on road, sea and air freights. Handling logistics for large businesses such as Asda and Next, they say that problems will continue for the next few years due to a number of variables.
What factors are affecting logistics worldwide?
Although the supply chain across the U.S. has started to see signs of positivity along with slightly less congestion on some ports, there are talks of bringing manufacturing of certain products back to the country. This could bring more income, jobs and more to the U.S. however, could impact other countries who are current suppliers. China, for example, has experienced many factory shutdowns in 2022 due to small covid outbreaks which in turn has provided many logistics delays worldwide.
With the ongoing shipping woes worldwide, this has sent prices of consumables soaring, putting more pressure on businesses to survive. Price hikes bring a cannon ball effect, as fuel and freight rise in cost, having a knock on effect on food, clothing and other products. As the UK is currently going through a cost of living crisis, it’s going to take a considerable amount of time before things start to change. The disruption in shipping has not only led to soaring costs, but poor container availability.
Heath Zarin, founder and chief executive of EV Cargo, said: “It’s going to take a period of years to stabilize and get back to normal.” - The Independent
Another factor impacting logistics has been the worker shortage worldwide, with many businesses across all industries struggling to find or retain staff. Specifically, the UK haulier shortage has meant that businesses such as Next have had to increase wages to attract and retain staff, further adding pressures to the cost of living crisis.
The increase in fuel costs is one of the major factors impacting challenges worldwide, and EV Cargo are turning to innovation and technology in their supply chains in hopes to make savings. Heath Zarin added: “There will be ups and downs but there won’t be a massive form of relief from elevated prices.” - The Independent
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Source: The Independent