UPS believes that supply difficulties will continue in 2022

Published by: MRT

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UPS believes that supply difficulties will continue in 2022

US home delivery giant UPS expects supply chain disruptions to continue in 2022, but does not expect a surge in freight prices, Scott Price, president of UPS International, told AFP.

According to Price, the weak levels of vaccination against the coronavirus in several developing countries could lead to new shortages of raw materials and components for manufacturing, similar to what affected sectors such as automotive, textiles or construction this year.

“The logistics industry expects no less disruption to supply chains in 2022 than in 2021,” explains the head of the company’s commercial operations outside the United States.

“I joke but only a little when I tell people to buy their Christmas gifts now, because on Christmas day there could be only a photo of something that will arrive only in February or March,” he warns.

Price estimates, however, that transportation costs will be controlled in 2022 thanks to various rate additions implemented by the company during the pandemic to face an explosion in demand and more important operating expenses.

UPS paid more for disinfectants, the installation of plastic separators in workplaces, hotel expenses of employees in countries where quarantines were required …

“Some of these expenses will disappear,” said Price, who affirms that transportation costs will grow 2.8% next year, below the average of the last 10 years.

In 2021, UPS increased its prices between 4% and 5.5%, according to market data.

– “Disparity” in vaccination –

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