It’s the Small Things: Trends in Transportation and Logistics

1. Consolidation Makes Waves

In 2019, just three shipping groups—2M, Ocean Alliance and THE Alliance—made up a large portion of the world’s seaborne traffic. With more consolidation expected in the future, analysts foresee higher shipping rates due to less competition. However, increased consolidation is also driving the construction of larger vessels, potentially offsetting some cost surges. –Forbes and Deloitte

2. Platooning Puts Trucking in Line

It may be decades before fully autonomous vehicles enter commercial shipping. In the meantime, transportation companies could adopt new strategies such as platooning, where a group of vehicles travel together under automatic guidance, led by a human driver at the front of a convoy. Advocates say platooning can increase fuel efficiency, ease traffic congestion and decrease driver fatigue. –ERTICO-ITS Europe

3. All Things Considered

The dispersed network of sensors and other devices that make up the internet of things (IoT) promises to yield operational efficiencies and revenue opportunities for organizations that apply it to their supply chains. IoT has enabled companies to track the movement of goods in real time, assess vendor relationships, forecast inventory demand and analyze customer habits. Spending on IoT technologies is set to double from $235 billion in 2017 to $520 billion by 2021. –Forbes

4. From Factory Floor to Your Door

Direct-to-consumer shipping is gaining ground. A survey published by market research company eMarketer showed that customers expect more than 40% of spending will go directly to manufacturers in the next fi ve years. Those sales could translate to $130 billion by 2025, requiring supply chains to adapt to meet this growing demand. –Logistics Management Magazine

5. Electric Trucks Revving Up

The average number of miles trucks travel annually continues to climb in the U.S., and so do carbon dioxide emissions. To keep up with fuel consumption standards in the U.S., truck prices are set to increase, which is driving the transportation industry to electrify fl eets. By 2025, the global electric truck market is expected to account for 10% to 15% of total truck sales. –MarketResearch.com

6. Unmanned and Undaunted

E-commerce giant Amazon and parcel delivery service DHL are among the companies to promise package delivery by drone. While these delivery services are still under development, the global drone logistics and transportation market is expected to grow 21% to more than $15.5 billion by 2024, according to one report. –Market Research Engine

This edition of “It’s the Small Things” originally appeared in the November/December 2019 issue of Middle Market Growth. Find it in the MMG archive.