The coming year will see more of the same with regard to supply chain congestion, and as a result, many companies already suffering from COVID-related business setbacks will continue to strive to survive.
The pressure on small and medium-sized companies to compete in a global shipping environment has led to more than its share of intense negative consequences. While over 85 percent of companies in the United States are deemed to be small or -medium-sized, this latest congestion has led to the consolidation of volume by larger companies, at the expense of those not big enough to be able to withstand the short-term drain on resources.
Shipments suffer delays all along the supply chain, whether at ports, terminals, rail, warehouses, or in transit on ships, trucks, and trains. Those delays, compounded by increased expenses and the inability to cope in this business environment, have hit small and medium companies exceptionally hard and may have long-lasting effects.
All companies are feeling the pain of the past two years, but none more so than smaller importers, exporters, truckers, warehousers, and freight forwarders, which must suffer under intense pressure to compete.
The aftermath of this economic debacle may lead to more government involvement — and perhaps new regulations — to protect these companies against unfair competition. However, by then it may be too late for many of those same companies.