The pandemic has disrupted the global economy and supply chains.
COVID-19 impacted the logistics industry in a variety of ways, the impact was felt in the retail and hospitality sectors, as projects became delayed or postponed as a result of the nationwide shutdown. The tradeshow sector was also hit hard as events were cancelled across several industries.
The industry saw e-commerce and home delivery grow rapidly, as online shopping increased. There was volatility in the freight rates category in 2020 and expect that to continue in 2021.
Americas Commercial Transportation ACT pointed out that because the global economy was structurally sound before the pandemic, the world has the foundation it needs to bounce back from the disruption starting as early as next year. And as the world recovers from the unexpected economic downturn, demand for truckers will only increase. More consumer spending always correlates with more freight moving, and experts believe that the trucking industry should be ready for this impending uptick in demand.
All findings point to one thing: shippers must begin planning their 2021 strategies now. If the economy does indeed begin to recover next year as many believe it will, trucking companies must ensure that they have the bandwidth to adapt to the increasing demand.
In addition to e-commerce and home delivery, research and development will continue to flow up and down the supply chain, using robotics to move products through distribution centers, and on and off of vehicles. We will also see less human interaction in the process as precautions are taken due to COVID-19. Residential and home delivery will continue to grow at a rapid pace as e-commerce continues to thrive. Warehousing opportunities will also increase.
On the sustainability front, we are seeing an increase in more energy-efficient vehicles. Many customers are also requesting packing materials be recycled. Sustainable initiatives and innovations will be a priority for customers and businesses alike.
Growth + Change = Opportunity! How are you going to capitalize on the opportunity as a freight broker, agent or dispatcher?