As we enter 2023, many new changes are taking place in the market. It is undeniable that the market is in a period of rebound and will slowly return to pre-COVID levels.
For international Christmas products wholesale, there is a need to focus on the international logistics and freight side of the business, and we will be making predictions for the changes in freight in 2023.
Paying close attention to shipping trends in 2023 will help your business make the right strategic choices and stay ahead of the competition.
1.Core Challenges for Shipping in 2023
Before predicting shipping trends for 2023, let’s take a look back at 2022.
2022 faces many challenges in international logistics transportation due to the still ongoing New Crown epidemic, the Russian-Ukrainian war conflict, and inflation: worker shortages, port delays, and rising freight rates. More than 70% of the world’s ports are experiencing very long turnaround times.
In 2023, these problems are unlikely to disappear overnight, but it is foreseeable that the global economy will slowly recover and these problems will slowly get better and gradually disappear.
2.Freight Forwarders Will Reduce Rates And Improve Services
At the beginning of a more severe pandemic, consumer purchasing power increases and carrier capacity decreases. At this time, carriers increased freight rates. At the same time, the blockade under the pandemic caused backlogs at ports, increased delays, and a decline in service levels.
This trend is beginning to reverse as demand levels off, capacity increases and backlogs decrease – and we expect the industry to continue to rebalance through 2023.
At the same time, as global economic conditions improve in the future, carriers will improve and enhance the services they provide to their customers in order to capture them and increase their performance.
In addition, there will be a large number of new ships in 2023. Capacity will be further increased, which may lower container freight rates. For consumers, the cost of transportation will decrease.
3.Improvement of Logistics and Supply Chain Technology
The trend of automation is strengthening and the use of artificial intelligence in logistics and transportation is gradually increasing. It can alleviate part of the problem of worker shortage in the transportation process.
The use of technologies such as drones and self-driving trucks will improve the efficiency of transportation and reduce stacking and congestion. 2023 will see an even wider application of these technologies.
Overall, there is every indication that international logistics and freight will move in a better direction in 2023, with a gradual return to normalcy.
The congestion that has been plaguing the international logistics industry for the past year has now been mostly resolved, while capacity is gradually improving.
For wholesalers of Christmas products, 2023 is a year of great potential. For the Christmas products wholesaler, it is important to plan ahead for purchases and shipments.