2022: Logistics Both Challenging and Progressing
Release date:
2022-04-08
Author:
Jinhua Logistics
Some have dubbed this past March a “moment of uncertainty” for the logistics industry: the Russia-Ukraine conflict has intensified global trade tensions; the closure of certain countries’ airspace has disrupted international airfreight routes; persistently rising fuel prices have heightened cost pressures; and the widespread, multi‑point nature of the pandemic has brought many local operations to a standstill, hampering logistics and making timely delivery difficult to guarantee. As a result, an already fragile supply chain has suffered yet another severe blow.
The logistics industry has never been easy.
Someone has already left this behind. March has been dubbed the logistics industry’s “period of uncertainty”: the Russia-Ukraine conflict has intensified global trade tensions; the closure of certain countries’ airspace has disrupted international airfreight routes; persistently rising refined‑oil prices have heightened cost pressures; and a widespread, multi‑point COVID‑19 outbreak has brought many local operations to a standstill, hampering logistics and making timely delivery difficult to guarantee. As a result, an already fragile supply chain has suffered yet another severe blow.
These can be glimpsed in recent online jokes.
Under the pandemic situation, the customer needs to ship goods, but logistics are closed; the customer’s operations, however, remain open. ;Logistics has been unblocked, but the customer is still blocked; both logistics and the customer are unblocked, but the driver is still blocked...
Repeated surges in fuel prices and frequent travel disruptions caused by the pandemic have left frontline logistics workers struggling to cope. :Have you taken a nucleic acid test yet? How long is the test result valid for? There’s no other choice—even if it means losing money, I have to keep driving; if I stop, I’ll lose even more, since I still have to pay off my car loan...
However, reality is more than… “Jokes” are even harsher—logistics is an incredibly tough business, especially in an environment of uncertainty. Whether it’s independent drivers or logistics companies, maintaining smooth operations and orderly growth is far less resilient and confident than we might imagine.
As a foundational, strategic, and pioneering industry that underpins national economic development, the growth of the logistics sector is vital to both the national economy and the well-being of the people. As the “vanguard” of enterprises resuming work and production during epidemic prevention and control, the logistics sector shoulders the critical responsibility of unblocking the “major arteries” and ensuring the smooth flow of the “microcirculation.” The times have bestowed upon the logistics industry the mantle of great responsibility, while the logistics sector, in turn, has provided a fitting testament to the era: whether combating the pandemic or responding to disasters, logistics professionals have consistently been at the forefront.
Fortunately, after all these challenges, some logistics companies have moved forward with even greater resolve. — Striking a leaner, more agile posture and advancing hand in hand. For instance, recently Best Inc. has transferred its domestic express‑delivery‑related equity, assets, outlets, transshipment centers, personnel, technologies, and systems to J&T Express, focusing instead on less‑than‑truckload freight and supply-chain services. Meanwhile, Debon Express, caught in a dilemma, has hitched a ride on JD.com’s logistics network, potentially breaking free from the cycle of cutthroat competition. In another move, COSCO Shipping Dalian Investment and Shanghai Linker have jointly acquired equity in Hainan Zhaogang Shipping, marking the official launch of a new chapter in COSCO Shipping Dalian Investment’s efforts to foster upstream–downstream collaboration across the LPG industry chain...
Faced with numerous uncertainties and challenges, enterprises are advancing on the path of high-quality development by pursuing objectives such as optimizing resource allocation, enhancing competitiveness, and refining and strengthening their core businesses—through measures including specialized integration, restructuring and M&A, and strategic alliances among industry leaders.
Meanwhile, national strategic planning is also empowering the logistics sector at the top‑level design stage in multiple ways. For instance, the implementation of new bundled tax and fee support measures, a large‑scale policy to refund outstanding VAT credits, and exemptions from VAT for small‑scale taxpayers will all provide targeted assistance to SMEs, individual business households, and industries facing particularly severe difficulties, offering market entities much‑needed reassurance. As a result, the logistics industry stands to benefit most directly from these policy dividends.
There are always more solutions than obstacles. The logistics industry may still face greater uncertainty and challenges ahead, but as long as it stays true to its original mission and companies continue to enhance their competitiveness, we can expect that, with the ongoing restoration of global supply chains and the gradual emergence of a new development paradigm, the sector will keep improving and its future will be promising. !
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