What changes can we expect in the logistics industry?
- December 28, 2020
Given the current situation on world markets, which have been severely affected by the covid-19 pandemic and the associated restrictions in many sectors around the world, the question arises as to logistics trends and forecasts, and how they will affect both freight carriers and their customers.
Although globally covid-19 pandemic and deterioration of US - China trade relations has caused a difficult period for most freight carriers, logistics services and the industry as a whole is booming in the Asia-Pacific region. This is largely due to the presence of major economies, such as India and China, where the industry also receives significant state support. The main direction of cargo is to Europe and the USA, however, it should be noted that in recent years there has also been a tendency to strengthen the transportation segment within the region.
As global trade is expected to decline overall in the near future, the supply of logistics services is also expected to surpass the demand. Development and volume growth in this difficult time could be experienced in rail freight, thanks to the development of a network of infrastructure and transhipment points.
We can expect logistics companies to prioritize their operational efficiency in the future, by investing in the latest technologies. The warehousing industry will also undergo significant changes due to process automation, growth of global e-commerce and the growing popularity of the dropshipping business model. E-commerce has created a desire in consumers for fast delivery for free, or at least at a competitive price, which is a challenge that traditional carriers will inevitably face.
Global change is inevitable. In order for us not to be surprised and unprepared, it is more important than ever to keep up to date with the latest developments and industry trends.