The Day at a Glance | December 28 2021

The Top

*Scarcity of workers persists in the transportation sector at a global level.

*Industrial production in Japan logged its largest monthly increase (7.2% Nov.) since 1978, boosted by the automotive production`s revival.

*Consumer confidence data in the United States will be made public (115.8e. vs 109.5 prev.).

Economic environment

There is no improvement in the transportation industry. According to the International Road Transportation Union, close to one fifth (20%) of worldwide jobs related to driving cargo trucks are vacant; even despite greater salary compensations. Something similar can be observed in maritime transportation, which has started to sound alarms regarding the scarcity of workers as border closings occur and COVID-19 restrictions limit the sector`s activities. 2022 appears to be a year that will bring severe disruptions among supply chains and high transportation costs since the Omicron variant`s spread will entail restrictions among transportation services (long quarantines), limitations on movement across borders (traffic jams of up to 18 hours long) and fears among workers of getting the virus. According to companies in the transportation sector, many workers are against signing contracts in light of these circumstances, while others have switched to industries that are less affected by the virus. This could keep the processing of goods slow with persistent delays in deliveries and high costs among productive chains all around the world. This is bad news for global production since some industries – such as the automotive – have started to show a considerable increase in production since November as the scarcity of inputs seemed to ease; however, the virus`s new wave is reaching record levels and the persistent scarcity of workers in the transportation industry could lead to continued limited supply in 2022.