The future of freight

Nearshoring is impacting foreign direct investment, manufacturing, and shipping in North America. The trend is now also evident in Europe while India may be the next block of consumers large enough to draw significant manufacturing near- or on-shore.

As increased manufacturing capacity comes online, trucking, 3PL, and rail companies should find ways to capitalize on these opportunities.

Potential impact: HIGH | Pace of change: RAPID

As digital technologies continue to advance, the freight industry is becoming increasingly consumerized; data is being harnessed for efficiency gains; and AI is enabling more accurate planning for labor, assets, and shipments.

When it comes to making technological shifts, one important question to answer is when, followed by whom to collaborate with, and how to structure partnerships and outsourcing.

Potential impact: HIGH | Pace of change: MODEST

Big moves by incumbents combined with disruption by new entrants continue to reshape competition in the global transportation industry.

Innovation is not the exclusive birthright of startups. Incumbents must know their exposures and find markets to disrupt with their scale, resources, and expertise.

Potential impact: MODERATE | Pace of change: RAPID

These transactions offer operational cost savings, vertical integration, and new ways to compete to help bolster resilience and versatility.

Restructuring continues to be a powerful competitive tool for transportation companies to maximize shareholder value. Companies should continuously evaluate whether fine-tuning their portfolio of businesses unlocks shareholder value, while also balancing factors such as labor disputes and regulations.

Potential impact: MODERATE | Pace of change: RAPID

Advances in electric vehicles, alternative fuels, autonomous vehicles, and telematics continue to move ahead. At the same time, regulatory uncertainty, combined with reluctance to take on unnecessary expenses, has resulted in a slow pace of adoption across the freight industry.

Technology is expected to continue to advance quickly, risk, and capital expenditures, and a potentially lighter-touch regulatory environment could push meaningful adoption levels past 2030.

Potential impact: HIGH | Pace of change: GRADUAL

In the wake of COVID-19 related challenges, the capital needed to remediate the vulnerabilities exposed by the pandemic exceeded the capacity of the private sector. Public/private partnerships (PPPs) emerged to reimagine logistics networks, address maintenance, and meet modernization needs.

Partnering with governments can offer private companies potentially significant ways to impact both transportation infrastructure and public policy. Consider seeking out ways to take part, while remaining cognizant of geopolitical situations.

Potential impact: HIGH | Pace of change: MODEST