We now face new challenges and an uncertain economy in the coming year. Following are the five trends we can expect to see in 2023.
High level of M&A activity : It is expected to continue in the cold chain logistics sector. Due to overall supply chain disruptions, many companies are considering near-shoring opportunities and attempting to gain more control over their supply chain.
Besides it during the pandemic, logistics companies grew by size and revenues as never before, gaining attention from private equity firms.
Logistics companies are expanding offerings : This includes investing in smart implementations. To gain competitive edge and provide more value to customers, logistics companies are increasingly expanding the services they offer — and they’re investing more to ensure proper implementations (e,g.: Easyfresh/FrigoBreda Moerdijk, NL coldstore). Customers want 3PLs to offer a broader set of logistics services, either extending their service portfolios to include upstream and/or downstream solutions, or expanding their existing services across more geographies, industries, or modes of transport.
Shipping line services are back to “normal standards” : During the pandemic, it was frequently a mad scramble to find a carrier to transport a load. Despite the current economy, we expect a return to more fluent services tandards, and the ability to be more selective in choice of carriers.
Lack of “logistics talent” : Demand for logistics and transportation talent is at an all-time high. It was an issue before the pandemic or great resignation, and has only gotten worse. Companies are deploying multiple tactics, including improvements to benefits and workplace culture, to attract and retain talent.
Volatility :Finding vendors and clients to keep your business consistent is key. We all face ups and downs in cargo volumes and flows. This fact limits the proper planning . Likewise it complicates the ability to committ with subcontractors in the cold chain, being a shipping line, a trucking Company or a coldstore operator.
The reefer logistics industry has always evolved. Next year it will be no different as we move into an uncertain economy . Anyway, the targets are identical : efficiency, reliability, speed and quality. All in all, it takes talented people to get there. Constructing the adequate team is critical to allow you to achieve your 2023 targets.