2023 recession is certain or likely to happen, say 70% of logistics execs

2023 recession is certain or likely to happen, say 70% of logistics execs

Top logistics executives are pessimistic about the outlook this year, with nearly 70% of them saying they are bracing for an economic recession, as higher costs, slowing demand and supply chain disruptions continue to impact their business, according to a survey.

The global study conducted among 750 professionals by Kuwait’s Agility showed that nearly half (45.1%) and 23.3% of the respondents feel that a recession is “likely” or “certain” to happen this year.

The company, which is one of the largest logistics companies in the world, released the results of its survey on Tuesday to provide more insights into the sector. It said the industry continues to deal with uncertainty even as COVID-19 restrictions have eased.

Operators in the industry, including carriers and shippers of consumer goods and cargoes, have recently been feeling the impact of inflation caused by Russia’s war in Ukraine. The conflict has resulted in higher input costs for businesses and lower revenues.

“Carriers and shippers are feeling the effects of higher energy prices, tight labour markets and broader inflation,” said Tarek Sultan, Agility Vice Chairman.

“Three years after the start of the pandemic, there is still a lot of volatility in supply chains. Now there’s uncertainty as consumers and businesses pull