Hurricane Ian has delayed southeastern supply chains by 4-8 weeks, while the holiday season is facing inventory imbalances and inflation. The Global 3PL Market is expected to reach 1924.31 Billion USD by 2028. TikTok seems to be planning a risky move to in-house logistics and China is increasing efforts to establish a modern logistics system by 2035.
After Hurricane Ian’s damage, the southeast estimates it will take 4-8 weeks for the logistics industry to recover. As of October 2nd, the seven-day delivery average had dropped 32% week over week and 31% month over month.
In the ensuing aftermath and damage assessment, national supply chains largely avoided the most feared impacts of Hurricane Ian, with disruptions expected to be far less than the extent of previous disasters according to Supply Chain Dive.
Holiday shopping is expected to start early this year.
The industry is unsurprisingly facing inventory imbalances and inflation. Logistic professionals should be worrying about fuel costs and driver shortages. 60% of logistics professionals are worrying about inventory shortages during the holiday season and 80% worry about missing delivery windows.
It’s recommended to rent additional warehouse space and trucks to help keep up with demand.
The Global Third Party Logistics Market was valued at 1045.93 Billion USD last year.
By 2028 it is expected to reach a value of 1924.31 Billion USD at a CAGR of 9.10% during 2022-2028. The report noted that the key driver in industry growth is increased trade activities.
Source: Business Wire
A recent report by Axios noted TikTok’s plans to “build U.S.-based fulfillment centers.”
TikTok would not use its own transportation units and would instead work with vendors to handle shipping, parcel consolidation, and transportation.
The decision to remain in-house may prove to be messy, especially after the trouble Nike ran into last year. The athletic-gear giant cut its revenue projections and faced inventory woes when 80% of its Vietnam factories closed. Resulting in a loss of 10 weeks of production.
Source: Logistics Management
China is increasing its efforts to build a modern logistics system.
China’s logistics market has begun to recover showing an increased performance of 4% last month.
By 2035, China plans to have improved the distribution of commodities and resource elements with smoother trade and logistics facilities.
Source: Hellenic Shipping News