February 8, 2023 – Nearly 70% of global logistics executives say they are bracing for recession amid higher costs, slowing demand and ongoing supply chain disruption arising from China’s battle to contain COVID, Russia’s war in Ukraine and the impact of climate change. Ninety percent of the 750 industry professionals surveyed for the 2023 Agility Emerging Markets Logistics Index also say their shipping, storage and other logistics costs remain well above the pre-pandemic levels they were at in early 2020. The Index, compiled by Ti Insights, ranks China number one, however only 11% of respondents say their company’s manufacturing footprint is the same as before COVID. “Carriers and shippers are feeling the effects of higher energy prices, tight labour markets and broader inflation even though freight rates have fallen and ports have cleared cargo backlogs,” said Agility Vice Chairman Tarek Sultan. “Three years after the start of the pandemic, there is still a lot of volatility in supply chains. Now there’s fresh uncertainty as consumers and businesses pull back on spending and hiring.”
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