MAERSK: THE 5 TRENDS IN FREIGHT FORWARDING 2024

Analyzing the trends and scenarios that lie ahead for freight transportation in 2024 is critical for the global economy, so that companies can be prepared for the various scenarios and continue to drive trade, production, and economic growth.

A.P. Moller - Maersk published an article last November on the 5 trends that will shape cargo transportation in 2024. Read on to learn more about them.

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1. More capacity, but with demand volatility

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Expectations for carriers this year are not very favorable, as we see an increase in service supply along with improvements in container capacity, however, demand estimates are not very encouraging. The International Shipping Association estimates a growth in container capacity between 3% and 4% in 2024.

Against this backdrop, the industry faces increased competition. They will have to put special emphasis on value proposition and added value to stand out from the competition and build customer loyalty. Response time, costs and flexibility will be three key factors for the sector to face this upcoming challenge in the cargo transportation industry.

The world ocean fleet demand is working to reach a record 2.7 million TEUs, for which it needs to grow by approximately 7.8%. On the other hand, the increase in the air fleet has had more impact on the industry, growing by 9% in 2023 alone.

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2. Climate change and geopolitical tensions loom large

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It is impossible to be sure of the unexpected events that will cause changes in freight transportation and other industries, but it is important to be prepared for them. Climate change continues to be a global concern, and although global actions are being taken to mitigate the effects of climate change, natural disasters such as hurricanes, droughts, among others, are becoming increasingly common.

These unexpected events cause changes in the logistics chain of companies, such as delays in delivery times, increased costs, and increased risk of goods, especially those transported by sea and air.

Disasters such as droughts and high temperatures have caused maritime cargo transportation to be affected. One example is the effects of the hot and dry weather that have affected the Panama Canal, since it requires a large amount of water to operate and have caused maritime crossing measurements to be between 30 and 50% below normal.

In addition, political tensions are one of the main factors limiting companies from making an investment move. Tensions and wars, both commercial and economic between different countries, cause uncertainty in the population and the demand for cargo transportation is affected by the reduction of daily operations and investments in the sector worldwide.

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3. Waves of consolidation

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Large companies are prepared to form alliances and consolidations among their competitors to be more competitive in the market.

When alliances are generated between large companies, we can see very good results in the industry, as they pool financial, human, and technological resources to offer better services to the sector. However, small companies and independent carriers will find it more difficult to achieve the success that these alliances will achieve.

The personalization of service and the prompt response of independent carriers will be paramount to avoid being affected by the consolidation trend, which is expected to be very present in 2024.

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4. A true test of commitments to sustainability

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Reducing the carbon footprint is one of the main objectives of freight transportation, since it is responsible for a large part of the percentage of emissions.

The adoption of new technologies and innovation in more sustainable vehicles, such as electric or hybrid vehicles, have been two of the actions that logistics companies have begun to take to reduce their environmental impact. Some of the most efficient practices can be seen in route optimization and cargo consolidation.

Green logistics is one of the main objectives that companies seek to achieve, and for that, they must raise awareness among all actors in the supply chain, as well as their end customers to achieve great changes together. Accompanied by technology, we can see great changes in the reduction of the carbon footprint and the attempt to mitigate climate change.

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5. Digitalization as a must-have

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In a more globalized world, technological advances are reaching every corner of the world much faster. Digitalization will continue to be a necessary resource if you want to stay in the industry.

More and more we see logistics companies investing in advanced technological solutions, some to be at the forefront and as part of their added value, and others in response to the current demand generated by the industry.

In 2024, digitalization will continue to play one of the most important roles in impacting freight transportation, and in turn, helping the industry to achieve its goals of sustainability and reduction in time and costs. A great tool to consider continuing standing out in the market.

These were some of the trends presented by Maersk in its article, a leading company in international business and cargo transportation. Do not forget to always be informed about the trends that will mark the destiny of your industry, since this way, you will be able to generate action plans and make informed decisions, which will bring better results to your company.

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