Cabrella Predicts: A 2022 Global Shipping Outlook

Posted by Benjamin Meskin on Mar 8, 2022 9:00:00 AM
Benjamin Meskin

Does it feel like the beginning of 2020 was a lifetime away? We don’t blame you: it’s been an exceptional couple of years for most of the shipment industry. 

And it seems like things are getting back to normal. Or at least a new normal? At the very least - most of us will agree that the ‘worst’ supply chain disruptions are over, and we can now adapt to a more predictable, if slightly altered, new normal. 

Throughout 2022, the shipping industry can expect further digitization, delivery rate increases, and omnichannel consumer experiences.


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Top 4 Shipping Trends Predicted for 2022

In 2022, global shipping will continue to see technological advancement. However, we will likely see shipping and freight rate hikes. Thus, if you seek to insure your supply chain activities, it would be a prudent idea to obtain international shipping insurance to ensure that you hold firm and can withstand a rapidly changing shipping landscape.  

1.Digital Technology is Improving Logistical Efficiency

As you may have noted, the shipping industry was quite a laggard in cutting-edge technology pre-pandemic. But now - we’re catching up, and there are fantastic digital solutions that can massively improve efficiency.

But how exactly? Primarily, we’re using technology to introduce real-time tracking, streamlined communication, and easy online insurance tools to make logistics more efficient than ever. 

The Rise of Robotic Process Automation

It’s 2022, and the world is getting more and more like a Science Fiction novel. Robotic Process Automation (RPA) is becoming a force to reckon with. RPA helps to optimize all of the boring stuff: the repetitive tasks that are mundane yet essential. 

On top of this, RPA tools are crucial towards automating processes for the Transportation Management System (TMS). Additionally, Robotic Automated Storage (RAS), or Robotic Shuttle Systems (RSS), are both recent and fast-growing technology that can complete order fulfillment requests via packing items from shelves for delivery. Additionally, these systems help to calculate efficient routes and improve processes. In 2022, more shipment companies will continue to invest in RSS to drastically increase productivity in shipping facilities.

The Growth of AI and Automation

The status quo has changed for the shipping industry. Automation and Artificial Intelligence are helping optimize supply chain operations. How is this possible? Let’s highlight the top three reasons.

  • Improved Inventory Management: Both automation and AI can improve inventory, supply chain, and the supplier selection process.
  • Optimized Maritime Scheduling: AI serves to merge interconnected port system devices and ship sensors to make overseas shipments much more streamlined. Plus, customized machine learning and AI algorithms can additionally help manage inventory more efficiently.
  • Narrowing Margin for Error: Smart sensors and Smart ships leverage real-time data to analyze weather conditions and other input for safer operations overseas.

The Increase in Use of Smart Contracts

Many shipment companies utilize smart contracts to facilitate more seamless transactions for shipping organizations and the supply chains they deal with. These contracts automatically trigger an action when specific circumstances are met. How handy! For example, a smart contract system can submit a 100% automated invoice (or via email) that keeps all parties informed and ready.


Robotic process automation for shipping


2. Exacerbated Freight Rate Hikes

After a turbulent time when it seemed like there was no end in sight, the freight industry appears to finally be recovering. The past two years have been tough, and we continue to feel the long-tail effects of this. 

In 2022, freight demand is growing, and so are the rates! There is still uncertainty about consumer spending that heavily impacts shipping trends and the ever-growing need to transport physical products.

Thus, freight prices are three feet high and rising (points if you get the reference). Prices are rising, but you still plan accordingly. Shipping owners will want to collaborate with carrier networks to ensure availability while staying within budget. 

It’s essential to remember that Customized Freight Shipping Insurance is a key buffer against exacerbated freight rate hikes. This is a big deal because it protects your shipment, ensures that your deliveries arrive safely, and protects you from carrier liabilities. Also, Cargo Shipping Software is a great tool for actively monitoring packages so shipping companies can identify the ideal regional carriers.


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3. Shipping Price Increases

All of the major carriers are seeing increased shipping costs in 2022. Everyone from UPS, USPS, and FedEx is increasing shipping costs. Further, we should remember that the general annual rate increases are higher because of the pandemic. 


UPS have increased their rates as of December 27th, 2021. 

  • There will be a 5% increase for all shipment services.
  • There are also Handling Charges which exceed size restrictions starting January 10th
  • On top of this, there are additional large package and handling surcharges

Logistics trends indicate that shipping companies are spending up to 10% of annual revenues on the shipping charge themselves. With luck, most regional carriers offer more affordable international rates. Thus, choosing solid delivery options will ensure that customers receive orders on time and without delay. 


USPS introduced a host of fun new rates that started on January 21st, 2022. Also, keep in mind that prices will likely be based on a Consumer Price Index and might depend upon the actual location.  

  • Mail rates will increase 1.5%
  • First-Class Package Service will increase to 1.8%

It’s worth considering that many parcel delivery companies from Amazon, DHL, and UPS outsource their shipping to USPS. This invariably leads to price increases for your medium and large-sized packages.


As you would expect, FedEx has increased shipping rates in 2022, which means that FedEx Express package and freight standard list rates are increasing an average of 5.9% for U.S. related services. FedEx Ground standard list rates are increasing an average of 5.9% on top of this. 

Keep in mind that FedEx Freight rates are increasing 5.9% on average, plus Final Mile Delivery surcharges which are higher as FedEx has added additional locations across their service network. In addition, during the pandemic, retailers frequently failed to meet one-day shipping goals. 

You’ll be pleased to know that shipping companies can massively enhance the customer experience. You might be thinking: how will I achieve this? Well, it’s quite simple.

You’ll want to leverage 3rd party shipping insurance. Shipping insurance software helps shippers to manage all of their deliveries with multiple carriers and stop issues before they happen! Hooray for that indeed! 


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4. Omnichannel Shipping Trends: Key for Flexibility

Want to have a successful 2022? It’s time to optimize business resiliency. Omnichannel fulfillment strategies can help a business continuously make a profit, even when a single channel experiences disruption. Indeed, e-commerce channels, retail, direct-to-Consumer, and third-party distributors all help you to stay connected to customers while drastically exceeding expectations and blowing their minds with your amazing service.

To do this, it’s a good idea to have an omnichannel sales approach that relies on keen communication, real-time tracking, and close collaboration with couriers. At this point, you might not be surprised that we recommend the many Benefits of Shipping Insurance

This is because shipping insurance will help shippers gain an astonishing amount of access to a supply chain platform that offers a beautifully consolidated view of channel suppliers and shipments. These tools are excellent because they help shippers drastically increase revenues while managing greater sales volumes (all while dealing with logistical challenges).

Conclusions for 2022

With any luck, shipping trends in 2022 will become more steady and stable. Conversely, we may see another COVID-19 strain that presents innumerable trials, tribulations, and challenges to the global shipping industry. Either way, you’ll want to be prepared so that your international shipping practices are locked and loaded for 2022.

Apply for Insurance today so that you can prepare your software, networks, and overall capacity for worldwide shipping success. If you want to learn more, contact our amazing international shipping insurance professionals at Cabrella.

We can answer any questions and inform you about the easiest ways to revolutionize your shipments.

Tags: #internationalshipping

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