After pandemic-induced shutdowns, border closures and supply chain issues of the past few years, there is much hope that 2023 will be return to business as usual. 

For the logistics and freight forwarding industry in particular, many lessons learnt from the previous few years will be implemented in 2023 to avoid some of the vulnerabilities of the previous few years. Alongside this, a host of trends and changes are set to shake up the way freight forwarding is delivered in 2023. Here are the top five logistics trends to watch in 2023 

1) China is back

Not so much a trend as a domineering return to the way things were, the impact of the scraping of the zero-COVID regime in China cannot be overstated. With a 90 per cent fall in freight from China to America alone in 2022  China’s reopening of borders will play a massive role in freight forwarding in 2023. This will impact everything from supply chain issues to prices. 

However, the scraping of zero-COVID has also seen a sharp rise in infections across China, with some factories unable to fill orders, leading to shipping services being scrapped. Some of the largest ports in the world are reporting depleted workforces of up to 75 per cent, impacting loading and shipping. Shanghai, the world’s busiest port, is reporting bottlenecks due to a lack of workers. 

 2) Digital technology will continue to improve services

Whether used in warehousing or allowing customers to track their freight as it crosses the globe, digital tools will continue their surge in use throughout 2023. Improved digital technology improves supply chain management while reducing transport costs. Further to this, the decrease in paper documentation not only means more sustainable methods of tracking, but allows for more seamless, easily tracked service.  

One of the biggest trends in digital technology in logistics will continue to be blockchain tech. Blockchain is, in short, a digital ledger that’s decentralised on multiple devices globally, and with no third parties involved it allows for real-time, transparent, efficient distribution of data. Blockchain allows smart contracts to be programmed and go live when certain criteria are met, reducing the need for human involvement. 

Avion’s end-to-end digital services allow synchronisation of the logistics supply chain while reducing the possibility of human error. Our Warehouse Management System integrates with other e-service platforms via EDI/API flows, streamlining operational processes and dramatically reducing error margins. 

 3) Shipping prices should fall

While this is a much-hoped for trend, the global world economy and geopolitical climate makes it difficult to guarantee anything. However, after years of massively increased shipping prices compounded by China’s closing, analysts are forecasting a reduction in shipping costs in 2023.  

CNBC’s State of Freight quoted the CEO of Container xChange Christian Roeloffs predicts “the high possibility of an all-out price war” in 2023. “With the competitive dynamics in the container shipping and liner industry, I don’t expect especially the big players to hold back, and we do expect prices to come down to almost variable costs.” 

4) An increase in environmental action 

There is no escaping the fact that moving goods across the globe can leave a large emissions footprint. Like all industries, freight forwarding is under pressure to improve environmental policies, and regulators are using a carrot-and-stick approach to ensure changes are meaningful and time-bound. 

Independent maritime research and consulting services Drewry said The European Union will be the first to enforce shipping-specific carbon taxes for all shipments to, from, and within Europe from 2023. This trend for greener freight forwarding could also see a rise in shipping companies using alternatives to fossil fuels, itself a major contributor to global warming. 

5) More tailored-solutions

The demand for more tailored freight and logistics solutions goes hand-in-hand with freight forwarding companies being more agile. Logistics organisations are understanding that with a multitude of global issues impacting small, large and even multi-national businesses, they have to respond accordingly.  

Customised solutions, cost-effective options and flexibility will be required as organisations across all industries march towards business as usual.  

Avion, for example, provides not just shipments, but also offers customs and tax consultancy for clients. We also provide shipment options such as LCL (Less than Container Load) for businesses that may not require a full container load. 

While there are still unknowns at play, it is certain that 2023 is set to be a game-changer for the freight forwarding industry as we know it, and here at Avion we look forward to rising to the challenge to continue to deliver top-class service. Learn more about how Avion can help your business with logistics or shipping, or request a quote today.