On the threshold of 2022: the results of the year for the global and Russian logistics industry

The main event affecting everything that has happened in the world this year is the ongoing pandemic. It has revealed “thin spots” in all global systems, including logistics. In 2021, a number of important trends emerged in global and Russian transportation, which will set the direction for our entire industry in the new year

1. Companies are reorganizing to new conditions, adapting to economic processes through consolidation and merger. Firstly, large companies absorb small ones. Secondly, organizations from different spheres of activity unite to create joint projects. Retailers are teaming up with logistics companies to speed up and cheapen the delivery of their goods. It was this year that the phenomenon of business ecosystems emerged, which reflects this trend in the best possible way. Thus, everything is developing towards centralization, which will simplify management, including state control over business.

2 Due to the rising cost of transportation and delivery times, some companies are moving production closer to distribution points, and are also trying to purchase equipment (containers, ships). Large production companies tend to take control over their own logistics, ensuring their independence from third-party carriers.

3. Uncontrolled growth of prices for energy resources continues, which is like a “feast during the plague”. There are no regulatory mechanisms that would determine the permissible range of prices and correctness of companies' work in the market. Therefore, prices are rising uncontrollably, monopolies are trying to earn as much as possible at any cost. And ordinary people suffer from this.

4. People's needs have changed due to lifestyle changes, and the economic crisis has hit the wallet and reduced consumer spending power. This has affected the structure of orders, types of deliveries and cargo composition. Transportation is an indicator of the economy. The number of shipments can be used to assess the level of consumption and prosperity of people. Also, the cargo nomenclature reflects the situation in the country.

5. In the current situation, carriers, owners (of ships, containers, vehicles and infrastructure), as well as companies specializing in consolidated cargo and courier delivery, win. Small companies that do not have a “margin of safety” in the form of their own funds have the hardest time. Assessing the current trends, I am inclined to think that we should not expect significant growth in transportation next year. In 2022, there may be some more decline, or the current level of development will be maintained at the expense of some industries (for example, courier delivery, which will continue to gain momentum). I think that the next year will be decisive: whether we start to get out of the crisis or sink even deeper. But I am not inclined to predict any significant positive changes.

As for Jam Modern Logistic, despite the difficulties, we managed to restructure our work and adapt quite quickly. And our efforts were not in vain: I can say that the past year was a good one for our company. Our plans for 2022 are to maintain and improve the quality of our service, to meet all customer needs to the fullest extent possible. In other words, to continue doing what is almost the most important thing for us: to be customer-oriented. Customers are a reflection of the market. By finding out their needs, we can change our development strategy and be “in the market”. By communicating with customers, knowing and understanding their moods and desires, we can adequately respond to them. This allows us to react quickly to changing conditions and at the same time remain sustainable.