Freight Shipping Trends in 2023
The freight industry is ever-evolving, and shipping is a critical element for some businesses. In 2022, shipping companies faced daunting challenges. With inflation and fuel prices on the rise and supply chain problems occurring around the globe, many businesses have struggled to meet their projections for the year. Retailers also witnessed the importance of inventory management and freight analytics to keep their supply chains running smoothly in the face of global challenges.
What trends are expected to be witnessed in 2023? Read on to find out:
Trends in 2023
Many of the trends that have plagued 2022 will likely continue in 2023. In particular, we expect fuel costs to continue their upward trajectory. The problem will likely be compounded by a global recession and continued inflationary pressures on the supply chain.
Labor shortages
Likewise, labor shortages will continue to be a problem. The global supply chain bottleneck will continue, largely due to the pandemic and global conflicts. In addition, global shortages of truckers make it difficult to load and unload trucks in a timely manner.
Retailers and manufacturers can ease the effects of trucker shortages by partnering with multiple carriers so that they can have access to sufficient delivery agents and truckers in case of an emergency.
LTL carrier fuel surcharges
As part of their quest to remain profitable, LTL carriers will likely institute fuel surcharges. Fuel surcharges adversely impact the LTL carrier pricing, increasing the effective price that a shipper must pay.
Sustainable shipping
Another effort to control costs globally is sustainable shipping. This technique has several prongs, including reducing the length of supply chains and using more energy-efficient modes of transportation. For example, newer ships burn less fuel for their tonnage capacity than older ones.
However, sustainability goes beyond the fuel used by transportation. It’s also concerned with the packaging and other aspects of shipping that consume resources. For example, Amazon now ships consumer packages in smaller, lighter packaging materials whenever appropriate. This is advantageous for shippers because it means they can put more packages into the same vehicle.
Supply chain agility
A more agile approach toward inventory management is being increasingly adopted by retailers of all sizes. Retailers are optimizing their shipping and inventory management practices through the lens of balanced consumer demand and product supply. Smart inventory management applications backed by AI technology are being introduced within a lot of SMBs and Enterprise-level businesses.
Load Balancing
Retailers are looking for ways to save money on shipping and warehouse costs, and one way to do that is by load balancing. Load balancing is the process of dividing incoming inventory among a group of warehouses instead of sending all inventory to one warehouse.
Partnership with 3PLs (Third-Party Logistics)
Did you know 80% of Fortune 500 companies use 3PL services in some form?
Retailers who want to scale are now looking to partner with 3PLs and outsource their logistics operations. Outsourcing shipping logistics to a 3PL can save you time and money. You get ready access to a fleet of reliable carriers at low rates along with different delivery levels.
Many shipping trends, such as labor shortages and high fuel prices, are likely to continue in 2023. However, other trends like load balancing and proactive supply chain management should help alleviate some of these challenges.