Six Trends For Shipping And Logistics Globally In 2024 And Beyond

4 December 2023

President of MTS Logistics, a NYC-based logistics company. With his energy and leadership, they have become a top U.S. logistics company.

The world of shipping and logistics is always changing. The past four years, from the Covid pandemic to the economic recovery and supply chain crisis that followed it, have shown that the global supply chain is prone to disruption but also innovation. As a shipping and logistics professional who has owned and operated an international freight forwarding company for over 23 years, I’ve seen many trends come to pass. Now, I’d like to share six key trends that are likely to affect shipping and logistics in 2024 and beyond.

1. Digitalisation

Although digitalisation in shipping has been talked about for a long time, by next year, it will finally be a reality for many shippers. The bottom line is that the Covid pandemic and transition to remote work forced the shipping and logistics industry to digitalise. Big shipping players such as Maersk, MSC, Hapag-Lloyd and others digitised. But something miraculous happened: Boutique shipping companies also digitalised, and in many cases, they implemented their own software systems and tools for their customers.

Artificial intelligence (AI) and blockchain technology could further digitalise and automate the world of shipping. It is expected that developments in those areas will improve real-time shipment tracking and supply chain visibility to build on the software that has already been deployed in the industry.

Another massive move toward digitalisation is the introduction of paperless shipping. At freight forwarders such as MTS Logistics, we are 100% paperless as of 2023. Others are following suit, as digital platforms take a greater role in shipping.

2. Economic Headwinds

After a rocky pandemic-era economic period and post-Covid economic shockwaves, every businessperson hopes that tough economic times are behind us. There are many aspects of the economy to feel confident in: rising wages, steps toward a reduced income gap, reduced regulations and, yes, inflation finally starting to decrease.

However, many challenges remain. Inflation is not yet low enough that shippers can increase their revenue and profits without increasing costs. In Q3 2023, fuel prices rose dramatically, and that has been passed down to major ocean shipping lines. With Saudi Arabia and other OPEC+ countries having reduced global oil production, more volatility is likely ahead in 2024.

3. Sustainability

Sustainability and greener business practices have been discussed for years. But with frequent and costly natural disasters becoming the norm amid a changing climate, the shipping and logistics industry has started to step up and take bold steps. There have been regulations implemented by global shipping regulators such as the International Maritime Organization’s “IMO 2020” rule, requiring cleaner fuel and retrofitted emissions scrubbers installed on older vessels. By 2024, more bold action will likely have been announced.

Water shortages, such as the low water levels seen this year in the Panama Canal, and excessive drought throughout the western United States, are here to stay. Ports all over the world have been forced to suspend operations periodically due to climate-related events.

The private sector has stepped up over the past few years with initiatives to promote zero-carbon shipping by 2050 (and in some cases sooner). Shipping leaders such as Maersk have led the way, and new ships are being built with electricity and alternative fuel sources in mind. Still, it will be a while until logistics is completely green.

4. Last-Mile Delivery

The last-mile delivery ecosystem has changed rapidly over the past few years, and by 2024, major U.S. retailers will have taken steps to take over many aspects of their last-mile delivery operations. Over the past few years, Walmart, Target and Home Depot all expanded their last-mile delivery options, opting to take over some operations from existing carriers in order to offer services like faster deliveries. Many retailers have also opted for same-day delivery offerings.

With regulations and oversight having been implemented, autonomous delivery solutions, such as self-driving trucks, could enter real-world use as early as 2024. Last-mile delivery continues to be a challenging part of logistics, especially after supply chain issues in 2021 and 2022. Major companies are exploring partnerships with new fulfillment partners and even taking on last-mile delivery themselves. That trend should continue.

5. Supply Chain Resilience

The Covid pandemic exposed vulnerabilities in global supply chains. In response, companies are rethinking their supply chain strategies to enhance resilience and implement risk management. This includes diversifying suppliers, changing how goods are sourced and, for some companies, just having a plan. Analytics is becoming even more important and will play a big role in identifying potential risks and associated responses.

6. Cybersecurity

As the shipping and logistics world digitises, cybersecurity is becoming more important than ever. In 2024, it is likely that the shipping industry at-large, as well as related partners, will invest heavily in cybersecurity. The United States has invested in cybersecurity for government operations, and the private sector has started to do so on a vast scale. Now, it will be time for shipping to do the same as more sensitive data is moved into the cloud and shippers realise that cyber risks have grown exponentially since the Covid pandemic.

The industry is likely to invest heavily in cybersecurity to protect sensitive data, safeguard cargo from theft and prevent cyberattacks that threaten operations. Multifactor authentication will continue to become the norm in shipping and logistics, as it has in other industries.

As an experienced shipping professional, I have watched the beginnings of each of these six trends take hold in recent years. I have no doubt that 2024 will be a year of profound investment and focus on the future in the areas of digitalisation, sustainability, last-mile delivery, supply chain resilience and cybersecurity. At the same time, the global economy will pose new challenges for the shipping and logistics industry.

Article credit: https://www.forbes.com/sites/forbestechcouncil/2023/10/24/six-trends-for-shipping-and-logistics-globally-in-2024-and-beyond/?sh=32da2ccd5e20