The past year has given a drastic shuffle to many industries, hampering the global economy. While most businesses managed to survive the rough phase, the new year offers a brilliant opportunity for transportation professionals. But to take advantage of such chances, you must collaborate with trusted Truck brokerage companies. Building industry-wide relationships will be critical for your business’s success.
Even so, there can be specific freight disruptors, including both usual and advanced suspects. Apart from hurricanes and snowstorms, the geopolitical scenario will overshadow the market. To make matters even more complicated, labor shortage, recession, and inflation are expected to add fuel to the fire. Therefore, while looking for seasonal freight disruptors, ensure you don’t forget other critical variables while laying out your business plan. Be flexible and updated.
Nevertheless, below are five trends that can turn the picture of the freight business in 2023:
- Rising Fuel Prices
Fuel gets you on the road; if its price increases, you can expect to feel the burn. Plus, the escalation in Ukraine is still ongoing, which worsens matters even this year. Though the international maritime organization is trying to ease the strain, the oil prices remain close to record high standards set in 2008.
However, as the world enters a new year, experts predict a 50% dip in fuel prices which can offer some relaxation.
- Labor Shortages
2022 saw a significant fall in employee retention due to the Great resignation and rising demand of higher salaries. Companies struggling to recruit, train and retain technicians, drivers, retail staff, and warehouse workers can get some relief this year.
Though the strikes and slowdowns will not stop, implementing automation tools and opting for more flexible methods can help combat this not-so-profitable trend.
- Inflation
The US economy welcomed 2023 with a recession. And while there is no clarity around the duration and magnitude of this trend, trucking companies can expect a mild relief in the coming months.
Irrespective of the great expectations, the continuous rise in interest rates by the Federal Reserve raises doubts over the possibility of an even more adverse economic situation in 2023.
- Sustainability
With climate change becoming the center of every industry, Sustainable practices will be a welcoming trend in 2023. The ongoing debates, stricter environmental regulations, and consumer demands put immense pressure on transportation and logistics companies to adopt conscious business methods.
Irrespective of the duration, shippers must look for eco-friendly methods to deliver goods through route optimization, minimizing carbon emissions, and transportation collaboration.
- Automation and Security
Doing every task manually reduces your team’s productivity. That’s why in 2023, businesses will rely more on automating laborious tasks so the focus can be shifted to other core areas of business expansion. Modula lift, for instance, is one of the most reliable and innovative automated vertical warehouses on the market. Moreover, the hostile and dynamic digital environment makes data breaches and ransomware an everyday event, which improved security measures will curb.
All in All
2023 marks the beginning of a dynamic era filled with chaos. To ensure your project cargo drives safely amidst the mayhem, stay updated and watch out for trends.
Also read: Kongsberg and KVH Installed IoT Device on a Cargo Ship to Improve Maritime Connectivity
