As the acute shock of the COVID-19 virus pandemic recedes, and amid cost-of-living and recessionary worries, we expect relative easing in supply chain disruptions in the first half of 2023. Yet, the supply chain outlook will remain fraught with downside risks and will be closely linked to the broader regional and global economic climate.
Despite moderating indicators, headwinds to watch for in 2023 include thin inventories; labor market shortages; strike action and increased unionization at ports and across the transportation sector; US-China strategic rivalry; the persistence of mainland China’s dynamic zero-COVID-19 policy; volatile energy pricing; and resource shortages across critical technologies (semiconductors) and minerals. Containerized supply chains may never return to the reliability seen pre-pandemic, forcing businesses to keep their developing focus on supply chains in the coming years.
