Supply chain disruptions and the lockdowns are already affecting logistics companies. Operational constraints are expected to lead to delivery delays, congestion, and higher freight rates. And as mentioned, not all segments will be impacted equally – companies that serve e-commerce are seeing increased activity as consumers opt for online shopping of essentials, while those that serve other sectors (such as auto and consumer goods) will see a downturn. One mitigant: record-low fuel prices should provide some relief to transport operators. Overall, the uncertainty will exert downward pressure on revenues.
With new technology, new market entrants, new customer expectations, and new business models – there are many ways the sector could develop to meet these challenges, some evolutionary, others more revolutionary.
MARKET DISRUPTION
Customer expectations are increasing greatly. Both individuals and businesses expect to get goods faster, more flexibly, and – in the case of consumers – at low or no delivery cost. Manufacturing is becoming more and more customised, which is good for customers but hard work for the logistics industry. Add it all up and the sector is under acute and growing pressure to deliver a better service at an ever lower cost.
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