2023 Freight Logistics to Watch for Shippers and Carriers
Freight logistics is continuously evolving, and the high demand for shipping has become a pivotal element for some businesses. Over the past year, the economy hit a recession, the rise of fuel costs, and supply chain problems worldwide. The industry felt a shift, and we’re now a little more prepared to understand what trends we will see in 2023 and better understand how to navigate through them.
Sustainable Shipping
With the future focus on more energy-efficient transportation options, there is also the central concern of production and packaging to reduce the consumption of resources. Many brands and large corporations have set out to create more sustainable packaging, paying more attention to the type of materials used and focusing more on recycled goods.
Because of this, sustainable shipping and packaging are set to become one of the more prevalent logistics trends for 2023, motivating stakeholders in the logistics industry to reconfigure and innovate.
Embracing elastic logistics
Elastic logistics refers to the ability to quickly shrink or expand logistics capabilities to align with current demand. This is a remarkable ability to have, considering the events of recent years and the amount of uncertainty or unforeseen circumstances which can occur at any time. Elastic logistics allows companies to operate supply chains more efficiently in these instances.
Driven both by big data and increased automation, the infrastructure of elastic logistics is arguably the natural evolution of other supply chain trends with the application of the new technologies—data and machine automation—that have been emerging.
Technology advancements
Logistics companies are expanding offerings and investing in intelligent implementations to gain a competitive edge. This allows them to automate many internal processes to enhance the logistics experience. Many companies are looking to expand services. They can use specific tech stacks to support their carriers and shippers and capitalize on an accelerated growth strategy. Most see a 10% increase in efficiency within their entire business.
Internet of Things (IoT)
Also referred to as telematics in the transport and logistics industry, IoT is the foundational tracking and management technology for fleets. Data capture devices installed on vehicles or mobile assets can transmit critical information to a web-based software platform via secure cellular networks. IoT devices like smart containers and smart pallets allow shippers to know when stock needs to be replenished instantly.
AI
Although AI is not necessarily a brand-new concept, it has proved helpful in driving down labor costs in the logistics industry. When used in machine learning, this technology can optimize how loads are routed because it adapts from previous experiences. This allows carriers to save time and shippers to scale their business fast and at a cheaper cost.
Digital twins
The latest AI innovation in logistics has been the integration of digital twins. Twinning uses AI-powered machine learning algorithms to help companies evaluate and predict how the machines used in the supply chain will fare over time and when maintenance will need to be completed.
Using digital twins can help teams:
better understand supply chain agility and behavior
discover and resolve logistics bottlenecks
test design modifications
monitor risk and testing contingencies
Blockchain
The use of blockchain is emerging as a possible solution to various communication challenges. Blockchain is a distributed, encrypted method of storing and tracking ownership and transaction data. It was initially designed for the financial space but has since emerged as a powerful trend that multiple industries have begun to utilize.
For example, Mitsubishi Technologies created a blockchain tracker that allowed accurate deliveries for pharmaceuticals. This type of technology proves beneficial due to its tamper-proof ledgers that are integrated into the systems, meaning carriers can have peace of mind about less lost, stolen, or damaged goods.
Cloud-based systems
The widespread adoption of cloud-based systems in logistics has ushered in a new era for shippers and carriers. This technology incorporates recourses from various stages of the logistics process in real-time, which can be shared across teams accordingly.
For shippers, this means tracking their freight and responding within the time to avoid prolonged issues for on-time deliveries. Carriers can leverage cloud-based technology to bid on freight or improve efficiency on the road. Carriers can leverage cloud-based technology to bid on the freight or enhance the efficiency of their fleet on the road.
Partnership with 3PLs
The rise of 3PLs has been on an incline for the past several years. In 2002 we saw a drastic increase in utilizing these partnerships. About 80% of Fortune 500 companies and 96% of Fortune 100 companies use 3PL services in some form. Most companies investing in their business growth and wanting to scale are now searching for 3PLs like Sparrow Logistics and outsourcing all their logistic operations.
What Sparrow Logistics can do for you in 2023
When looking for a partner to ship your freight nationwide, look to Sparrow Logistics. With our team, you get exceptional 24/7 dedicated service and experts in the transportation industry with those nationwide connections. Sparrow can assist you in accomplishing your business goals while staying on budget and on time. We're here for you if you’re starting your year by experiencing logistics problems or searching for a partnership with a freight broker.
Contact us today to find out what Sparrow can do for you in 2023 (and beyond).