Best Logıstıc
The Largest & Biggest Logistic Industry
After nearly three years of unimaginable disruptions to the supply chain, 2023 will present its own set of issues and potentials. The impacts of the COVID-19 pandemic, the rising cost of living, and political turmoil are likely to be felt into 2023. The most severe congestion that has affected logistics is beginning to ease. However, new challenges are emerging along with potential growth opportunities. What the last couple of years has shown is the importance of being well-prepared. The key to surviving and prospering regardless of the conditions.
As the people working who work in the field of freight forwarding are preparing their strategies for 2023, here’s a list of crucial trends to be aware of and be prepared for in the coming year.
1. How Does The Unexpected Turn Into The Predicted?
The events of the black swan, which swept the country in 2022, highlighted the need for flexible and robust supply chains in companies involved in freight forwarding. These unpredictable, unplanned events can have a massive impact on supply chains. From the ongoing impact of COVID-19 to the ongoing effects of the COVID-19 epidemic to the Suez Canal obstruction and the conflict in Ukraine, supply chains have been frequently tested over the last several years. Other challenges facing the market for freight included staffing shortages, capacity issues, the rise in inflation, and the demand peak.
More than ever before, supply chains are now subject to unpredictable and unpredictable difficulties and problems. 2023 is no exception, and the need for freight forwarders from both the domestic and international markets to ensure that they are capable of surviving and adapting to any situation is never greater. The ability to adapt, flexibility, and transparency – which are often enhanced through digitalization – are essential to surviving the storm. With the right tools and the ability to gather and analyze information, freight forwarders are able to enhance efficiency. They are also better positioned to take advantage of opportunities that are not part interruptions. According to a McKinsey study, 90 percent of supply chain managers said they had invested in supply chain management technologies in the last year, and 80 percent of them expect to continue to invest through 2023 and beyond, typically to aid in advanced planning.
2. Economic Uncertainties And The Rise Of Protectionist Movements
Due to geopolitical issues and increasing inflation and rising inflation, 2023 is widely expected to be a downturn in economic activities. It is believed that the International Monetary Fund (IMF) forecasts global economic growth to drop from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent by 2023. In addition, the World Trade Organisation recently revised its forecast of the global economy in 2023 to 1.0 percent, which is down from earlier estimates of 3.4 percent. The decline in the momentum of several markets will have a significant impact on the customer base of freight forwarders. The report says that freight rates are falling more quickly than anticipated, and the world container market is expected to be “broadly neutral to negative” by 2023.
A growing number of countries are implementing or contemplating implementing protectionist strategies to curb exports and ensure domestic needs. Due to the Ukraine-Russia conflict alone, IFPRI’s trade policy tracker found that 29 countries have imposed export bans for food products which is equivalent to more than 18 percent of the total calories consumed by the world. It is the Chartered Institute of Procurement and Supply (CIPS) states that this trend is a matter that’s causing concern across the globe. It has identified oil and food as the most frequent targets of protectionist schemes, yet the variety of categories being affected is increasing. The schemes are intended to provide protection in the event of a crisis, but the increase in their use could affect the industry of freight forwarding. This highlights the necessity for freight forwarders who are in the business of future-proofing their supply chains, making sure they are agile, dynamic, and adaptable so that they can handle any disruption in supply chains and are able to react effectively and swiftly.
The business of freight forwarding is extremely dispersed. Transport Intelligence (Ti) notes that mergers and acquisitions have become more frequent in the last two years due to uncertainty and turbulent times. Due to the deterioration of the economy and the likelihood that 2023 will see an even greater consolidation of freight forwarding as businesses strive to improve their capacities and geographic reach.
3. In Logistics, We Care About Sustainability As A Keyword
The global attitudes towards sustainability have drastically changed in the last few years and will remain an important freight forwarding industry trend through 2023. A recent Economist Intelligence Unit report found the demand for sustainable goods has grown by 71% since 2016. Based on the 2022 Global Sustainability Study by Simon Kucher & Partners, 71% of people in the globe are making adjustments in their lives to be more sustainable and purchasing more sustainable goods. In total, 66% of people consider sustainability to be one of the top five factors in their purchase decisions, increasing from 50 percent in 2021. In the quest to improve sustainability, the freight forwarding industry could play an important role.
The Sustainable Freight Buyers Alliance says that freight transportation accounts for 8% of all global CO2 emissions. The figure is expected to rise to a forecast increase of 42 percent in 2050. Freight forwarders have significant purchasing power and could help in the shift to an eco-friendly logistics industry. By asking for and choosing sustainable transportation products, they can assist in shifting the wheel and cutting emissions. They could also advocate for digitalization, which could assist in identifying the areas of pain and improve efficiency within the supply chain to increase sustainability.
4. Digital Freight Forwarders Take The Center On The Stage
Digital transformations are occurring across all sectors, and freight forwarding isn’t one of them. Digital freight forwarders make use of technology to manage and coordinate the movement of items.
Digital freight forwarders have a variety of advantages, such as:
- More ability to monitor and satisfy demand and supply
- Opportunities to increase efficiency
- Greater capacity to analyze and centralize data
- Automatization and simplification of tasks
The global market for digital freight forwarding is expected to expand at a rate of 23 percent over the next several years, as per Allied Market Research. The market started with only $ 2.92 billion in 2020 and will hit $22.9 billion by 2030. It is more than 8 percent of the worldwide freight forwarding market, with 2023 being the most important year for growth and innovation.
The increasing prominence of freight forwarding via digital technology might result in more consolidation in the business and companies looking to improve their technology capabilities.
In Logistics, What Can We Do To Solve 2023 Challenges And Seize Opportunities?
The most severe disruptions in recent years are now caused by freight forwarding firms. The Sea Intelligence consultancy recently reported that without unexpected disruptions, shipping pressures would be back to normal by the end of March 2023. As the challenges of the past disappear, new challenges will be introduced. Knowing the trends in the freight forwarding industry, in addition to being prepared for any scenario by prioritizing the resilience and agility of supply chains, is one of the solutions.
SLG Logistics A.Ş
The Largest & Biggest Logistic Industry In The World