4 Supply Chain Challenges That Will Continue in 2023

COVID-19 and other disruptions – like the 2021 Suez Canal obstruction and the Ukraine War – have undeniably impacted supply chain management globally. So let us look at the critical supply chain issues in 2022 that will continue in 2023 and how your business can respond to these challenges.

COVID-19 and other disruptions – like the 2021 Suez Canal obstruction and the Ukraine War – have undeniably impacted supply chain management globally. Unfortunately, 2022 does not appear to be the reprieve many businesses were hoping for despite the world having taken tentative measures toward recovery from the pandemic. And analysts predict these issues will persist beyond this year.

However, it is not all doom and gloom on the horizon. A significant factor in efficiently navigating these supply chain challenges comes down to an organisation's preparedness. So let us look at the critical supply chain issues in 2022 that will continue in 2023 and how your business can respond to these challenges.

Challenge #1: Unpredictable freight costs

The worldwide lockdown measures implemented in the previous few years have contributed to a rise in e-commerce sales. This shift in consumer spending led to high costs for shipping throughout the pandemic.

Just slightly over a year ago, the demand was exceptionally high in China - one of the busiest shipping hubs in the world - with the cost of shipping containers rising exponentially from around $3000 to $15,000 per container.

However, with the world entering the post-pandemic era, we’ve started to see decreases in shipping costs, including contract logistics and spot-buy – some see the drop in shipping costs as a sign of recession.


To combat this issue, companies should consider implementing freight procurement software and automating their procurement process. Reliable freight rate management software can offer businesses deeper insight into service parameters and cost, granting them greater transparency in freight quotes. This way, organisations can compare rates and service levels according to the economic environment.

Challenge #2: Supply chain analytic woes

Forecasting demand based on trend data is crucial in supply chain management. However, given the vast amount of data generated through the supply chain process, it can be a challenge for supply chain managers to sort and interpret the data in a meaningful way to project an accurate forecast of demand.


As supply chain disruption continues to remain a daily occurrence, organisations must invest in practical data analytic tools to capture real-time data and mine it for valuable insights. Intuitive software that features an easy-to-navigate interface and can present crucial data in a comprehendible format is essential for companies to forecast demand accurately and make better decisions to mitigate business risks.

Challenge #3: Port congestion

The pandemic has created severe labour shortages across various ports globally. This has resulted in port congestion, an issue many businesses are still scrambling to address. Many ships cannot load or unload their freight since the port is at capacity, creating significant bottlenecks at a number of global docks. Unfortunately, this problem is expected to persist in 2023.


The issues contributing to port congestion will not disappear overnight. However, businesses can be better equipped to deal with this challenge with the assistance of a freight management system. A comprehensive transport management software can provide organisations with real-time data on congestion status across various international ports. With this data, companies can better plan their shipment schedule to avoid port congestion.

Challenge #4: Longer lead time with no clear visibility in sight

Port congestion and container shortages are just some of the issues contributing to increased lead times and longer shipment delays. In addition, the lack of precise ETAs (estimated time of arrival) and unreliable transportation schedule has led to a lack of visibility across the supply chain process. This has resulted in many companies operating in the dark and being unable to provide a clear update to their customers.

On the other hand, the Ukraine-Russia war poses uncertainty to the global supply chain, ranging from energy costs to food supplies. Experts suggest that operations managers in the production line evaluate their maintenance, repair, and operatings (MRO) supplies. And all these challenges logistics and operations professionals, as visibility is required to make informed decisions.


To address this lack of visibility in the supply chain process, companies require an efficient freight management system that can provide them with an all-encompassing view of their various in-transit shipments, forwarder performances, and cost analysis globally.

With the assistance of transportation management software, businesses are aware of their shipments and can be alerted to any potential disruptions and delays immediately. This way, they can take the appropriate measures to minimise the impact.

The need for better supply chain optimisation has never been more apparent than in the past few years. And supply chain technology will play an essential role in this process. Businesses can enhance their supply chain agility and resilience by leveraging technology to secure any weak links in their supply chain. This way, they can keep customers satisfied and remain competitive in the face of global instability.

Before jumping into sourcing and implementation, evaluate what you need. Talk to an expert who truly understands your business problems and can help to avoid typical enterprise software implementation drama that comes with delays, unnecessary costs, and user complaints.

At Cargobase, we provide a no-nonsense approach to help managers and logistics professionals achieve cost avoidance and immediate ROI with an average implementation time of 4 weeks and an interface that users actually love!

Schedule a complimentary consultation now.

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