In our post last week we discussed predictions for the global economy for 2023 and they were quite depressing. Today let’s have a look at logistics trends which will shape the industry next year.
This is a far more positive forecast, mostly about how state-of-the-art technology will solve supply chain problems and make everything better and faster. So give us just 5 minutes of your time to cheer you up.
Sustainable shipping
This topic has undoubtedly been one of the most discussed in recent years. According to Carboncare, the transport and logistics sector contributes around 24% of global CO2 emissions.
Next year we won’t see a miracle solution to the problem, but the industry will continue improving its environmental practices and switching to alternative fuels to reduce its carbon footprint. Have a look at our recent post here, to learn what’s on trend in green shipping.
Digitization, data and visibility
Even such a notoriously conservative industry as sea shipping can no longer resist the onslaught of the digital era. Although many shipping documents are still issued on paper, the shift from manual to digital methods in supply chain operations will continue in 2023.
There are several potential benefits to making this change. According to the Digital Container Shipping Association, if 50% of container shipping companies switched to electronic bills of lading, the collective global savings would amount to almost $4.5 billion annually. The International Chamber of Commerce estimates that small and medium companies could increase their international business by 13% if trade were digitized.
Although Maersk has recently announced they will shut down their blockchain platform TradeLens, the technology itself is not going anywhere. We will see more companies using blockchain to track shipments, automate payments, etc.
With all documents, rates and precise tracking data available online, the industry will become more transparent and predictable. This, in turn, will allow carriers and customers to act faster and be more flexible in decision making.
Automation and the Internet of Things
It’s not a new trend, but we will see more of it next year. The pandemic has caused so much disruption that it’s still felt around the globe to this day. Companies will want to reassess how they do business and try to optimize it by automating every process possible.
Automated cranes, self-driving vehicles, cargo tracking devices, and machine learning software will spur more interest than they did just a couple of years ago. The opening of the world’s largest automated terminal, Tuas Port, in Singapore, is one of the latest examples of automation coming into logistics by leaps and bounds.