2022 was another year of challenges and opportunity for everyone in supply chain. While freight levels started to normalize after record disruptions in 2020 and 2021, there were still a number of micro and macro-economic factors impacting the supply chain.
Here’s a quick snapshot of the milestones we achieved in 2022 as well as some of the major market forces that challenged the industry last year.
2022 Milestones at XTL
We are proud of what we accomplished in 2022; here is a few milestones that stuck out:
- 20 years of XTL Logistics.
- Opening of XTL Logistics office in Delta, BC, bringing the logistics operation to each of our major 4 service areas
- Opening of XTL Distribution in Calgary, AB which completed the establishment of all three of our distinct service offerings in each of our 4 service areas
- 15 years operating in British Columbia
- Recipient of Trucking HR Canada’s Top Fleet of Distinction Award for the second year in a row, as well as the award for Top Medium Fleet
- Fleet expansion with 32 new trucks and 30 new trailers.
Key Industry Trends and Challenges in 2022
Freight demand began to settle towards the end of 2022 compared to the remarkably high levels of 2020 and 2021. This was the result of a combination of new entrants in the truck market and a change in consumer buying habits related to the decline of stimulus programs, a return to spending on services over products, and inflation increasing the cost of consumer goods.
Recruiting and retention efforts were high across the industry as supply chain companies competed with other industries for labour as more workplaces opened back up. The ongoing driver shortage continued to be top of mind as driver unemployment remained low, but vacancies remained high. Similar vacancy trends were seen across various trucking and logistics positions as well, including shippers and receivers, dispatch, material handlers and mechanics.
Equipment & Part Shortages
Many organizations in the trucking industry reported continued equipment shortages in 2022 as a result of ongoing supply issues. This was challenging for some businesses that were prepared to grow but were unable to do so due to the high cost in the market and the backlog of parts. Factors affecting the high cost of parts and equipment could be attributed to price increases in raw materials such as steel, aluminum, zinc, copper, rubber, and wood, amounting to an average price increase of $40,000 for trailer when compared to 2021. Due to partnerships with our key suppliers, we’ve been able to mitigate shortages and secure equipment throughout 2022 and into 2023.
Outlook for 2023
Partnership will continue to be a key theme for 2023. It is expected that the demand for freight will continue to reflect changes in consumer buying habits, and that demand for equipment and labour will remain high. Ensuring you have the right supply chain partner will help you navigate the changing climate. Our nation-wide team of drivers, logistics professionals and distribution specialists will continue to rise to meet the challenges ahead. Contact XTL Today if you need help with your shipping needs in 2023.