Welcome to 2022!
Before we said goodbye to 2021, we looked back at all the major events that happened this past year in the shipping world. Now with 2022 ahead of us, we wanted to take a peek at what this year will bring for the shipping industry, and what Freightcom has planned to offer even more shipping solutions to businesses across Canada.
Brighter Days on the Horizon
There’s no way around it, 2021 did not yield the great rebound from 2020 that many hoped for. In fact, there was a lot that happened last year that only exacerbated the supply chain issues that we were collectively dealing with.
Thankfully, it seems as though 2022 has light at the end of the tunnel. With port congestion finally starting to ease both domestically and overseas, forecasting is predicting a return to pre-pandemic freight volumes by mid-2022.
In addition, ocean freight prices have at long last began to trend downward, signaling the hope that they, too, are on the verge of returning to pre-pandemic levels.
Sustainability will Be Key
Now more than ever, the shipping industry is on a trajectory for a green future. With more carriers investing in hybrid or electric technology for their vehicles than ever before, some pledging to eventually reach 100% electric vehicle usage in the near future.
This push toward sustainability is quite clearly in line with consumer sentiment, as a recent Nielsen survey recently found that 90% of consumers aged 21 to 35 are willing to pay a premium for more sustainably manufactured goods.
This is not to say that this industry shift will result in higher prices for the consumer, nor a higher overhead for businesses. Rather, it may just result in the opposite.
While carriers will incur upfront costs in the switch to greener vehicles, this switch will offset the ever-increasing cost of fuel, which shippers across Canada overwhelmingly expect to be a cost pain point in 2022.
Hope for the Best, Prepare for Less
As anyone who has been paying attention to the last two years can attest to, there is no way of being 100% certain of what the future has in store, and even the best laid plans can fall victim to uncertainty.
Be proactive in bracing for potential supply chain issues. If there is a silver lining to the constant headaches felt by shippers in 2020 and 2021, it is that businesses that were able to adapt with the rapidly changing supply chain should now be better prepared for the future.
Focusing on diversifying your shipping strategy can help to curb some of that uncertainty. For instance, utilizing multiple carriers for both LTL and courier shipping offers flexibility for both your business and your customers in regards to both shipping speed and rates. Further, utilizing multiple carriers also offers a contingency plan in the event of unforeseen circumstances that could mean delayed or cancelled shipments and unexpected expenses when relying on a single carrier.
Back when we spoke about preparing for the 2021 peak season, we mentioned that many businesses prepare well in advance of those months, and with 2021 year-end sales numbers still fresh, now may be the best time to start making those preparations.
Consider alternatives to in-house fulfillment if possible. With an industry trend toward more efficient warehouse automation, experts predict that inventory carrying costs could be reduced by as much as 30% by 2024. As such, moving to a fulfillment model that utilizes 3rd party fulfillment centres with a pre-existing automated infrastructure can potentially lead to both an upfront and gradual decrease in overhead.
Solidify Your eCommerce Infrastructure
By now it’s been said time and again that eCommerce is the future of retail. While nothing is likely to compare to the rise in eCommerce sales from 2019 to 2020, forecasters are still predicting an overall upward trend for online retail, both in sales numbers and overall market share.
In a recent study from Insider Intelligence, Canadian eCommerce sales in 2022 are expected to grow 11% over last year to an estimated $96 billion CAD!
While it may sound counterintuitive, 2022 may be the year to consider creating or expanding your business’ brick-and-mortar presence.
In a late 2021 survey from Forrester Consulting for Shopify, 59% of consumers will engage in webrooming, or purchasing an item in-store after viewing it online. Conversely, 54% of those surveyed said they engaged in showrooming, or purchasing an item online after viewing it in-store.
With that in mind it cannot be understated how important it will be going forward for businesses to ensure that they have a functional eCommerce infrastructure in place, including everything from selecting the right eCommerce channel, or channels, to having a watertight shipping strategy that accounts for eCommerce-specific needs.
Freightcom Aims to Keep Growing with Your Business
We hinted in our last post about some major things that we at Freightcom have planned for 2022. In 2021 we added many new lanes and carriers, as well as new services such as Freightcom Fulfillment to expand our coverage and continue to offer unbeatable shipping solutions. We’re happy to say that we’re only getting started and have every intention of continuing that trend into this year.
As for what exactly Freightcom has in store for this year? You’ll just need to wait and see, but rest assure, you are in very good hands.
In the meantime, there’s never been a better time to experience Canada’s leading shipping solution! Our easy-to-use platform offers you the best rates on LTL and parcel shipping from North America’s leading carriers, with zero startup or monthly fees!
Contact one of our shipping experts Monday to Friday, 9am to 5pm EST at 1-877-335-8740 or by email at email@example.com and see how Freightcom can help you ship smarter today!
Written by Brandon Draga
Brandon Draga is a full-time content writer at Freightcom, the leading shipping solution for businesses in Canada. When Brandon is not writing content to help businesses with their shipping needs, he can be found at local skate parks or writing fantasy novels.