What’s New: Logistics Market Intelligence Developments and Releases

For logistics-related market intelligence, here are recent market and provider developments that are worth noting.

Launch of Clean Freight Coalition

On March 23, the Clean Freight Coalition (CFC) was launched by a group of truck transportation stakeholders with the purpose of presenting a unified front on energy and emissions issues. Their mission is to educate, promote, and advocate to policy makers the “incredible progress” and “continued work of the trucking industry in its effort to reduce emissions and protect the environment” and in ensuring “affordable and reliable freight transportation [that] protects the nation’s supply chain.”

The five founding members of CFC are the:

  • American Trucking Associations (ATA);
  • American Truck Dealers (ATD), a division of the National Automobile Dealers Association;
  • National Tank Truck Carriers (NTTC);
  • Truck & Engine Manufacturers Association (EMA); and
  • Truckload Carriers Association (TCA).

G2 Launches the Logistics Intelligence Software Category

On March 30, software marketplace provider, G2, launched the Logistics Intelligence Software category to “reflect the burgeoning use of machine learning and advanced analytics in supply chain management.” According to G2, “Logistics intelligence is a newly coined term denoting information gathered from APIs, third-party vendors, and corporations to maximize the efficiency of shipping, transportation, and carriers. Logistics intelligence mirrors the phrase ’business intelligence’, which refers to insights gleaned from data that inform business strategy and decisions. Similarly, this technology aggregates data to help managers successfully orchestrate global supply chains that ship the right amount of material on time and cost-effectively.”

Emergence of Drone Corridors

According to Investment Monitor, to make goods delivery smoother and faster, the UK government has been “developing the idea of drone corridors to be rolled out across the country.” In 2022 approval was given for Project Skyway, which would “create a 265km unmanned aerial vehicle (UAV) corridor – also known as a drone corridor.” According to PwC’s recent Skies Without Limits v2.0 report, PwC reports that this type of initiative could result in “£22bn of net cost savings in the UK up until 2030, a reduction in carbon emissions of 2.4 million tonnes in that time and the creation of 650,000 jobs”

2023 State of the Third-Party Logistics (3PL) Industry Report

In February, omnichannel fulfillment provider, Extensiv, formerly 3PL Central, released its 2023 State of the Third-Party Logistics (3PL) Industry Report. This annual report has been published since 2017. Key takeaways include: 1) implementing warehouse automation technologies leads the trends for 2023, 2) the continued rise of 4PLs and the many benefits of expanding into 4PL networking, 3) increased focus on customer service to avoid failed 3PL partnerships, and 4) the evolution of fulfillment – “at the end of the day, fulfillment is a 3PL’s bread and butter.”

BGSA Supply Chain Outlook and Learnings from 2023 Conference

BGSA hosted over 350 top supply chain CEOs and leaders at BGSA Supply Chain, coined the “Davos for Logistics.” A couple highlights include: witnessing of “high volatility, dropping rates, and significant profit erosion, for trucking, freight brokerage, and most categories in the supply chain arena,” and Mexico is benefiting long term with the acceleration of the US-China trade war. Affiliate Cambridge Capital, believes we are “in the early innings of transformation in high-growth digital supply chains… some of the key themes we see include last-mile logistics, AI to automate supply chains, supply chain visibility, reverse logistics, and tech-enabled ‘man + machine’ services.”

Beroe Is Integrating ChatGPT With ABi

Procurement intelligence and analytics provider, Beroe, covers a multitude of market/spend categories related to logistics. On March 30, Beroe announced it is integrating ChatGPT with its AI-powered digital market analyst, Abi. “This first-to-market innovation is designed to bring the power of generative AI to help procurement and supply chain professionals get the right data and insights with greater speed and efficiency…Abi is at the heart of Beroe’s AI-powered intelligence platform, Beroe LiVE.Ai — tailored to the needs of procurement and sourcing professionals – providing market intelligence, supplier risk information, category benchmarking, cost models, price tracking, and forecasting.”

Pitney Bowes Releases Latest Version of the Parcel Shipping Index

Pitney Bowes released the US data for 2022 from its latest Pitney Bowes Parcel Shipping Index. Parcel volumes decreased 2% in 2022, “but remain on a trajectory that far outpaces predictions made prior to the pandemic.” Carrier volume key takeaways (directly quoted):

  • Parcel volume reached 21.2 billion in 2022, down from 21.7 billion in 2021, a decrease of 2 percent
  • Pre-pandemic, parcel volumes were not forecasted to reach 21.2 billion until 2023, putting volumes a full year ahead of projections
  • By volume, USPS shipped 6.7 billion parcels in 2022 down from 7 billion in 2021; UPS shipped 5.2 billion parcels in 2022, down from 5.3 billion; and FedEx shipped 4.1 billion, down from 4.3 billion
  • Amazon Logistics kept its parcel volume at the ‘21 level of 4.8B
  • The combined parcel volume from smaller carriers outside the top four, included in the ‘Others’ category, grew by 25 percent

2023 Agility Emerging Markets Logistics Index Released

Logistics analysis and research firm, Transport Intelligence (Ti), has compiled the Agility Emerging Markets Logistics Index (and Survey) since it was launched in 2009, which is a snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index ranks countries for overall competitiveness based on their logistics strengths, business climates and digital readiness. “China and India, the world’s two largest countries, held their spots at No. 1 and 2 in the overall rankings. UAE, Malaysia, Indonesia, Saudi Arabia, Qatar, Thailand, Mexico and Vietnam rounded out the top 10. Turkey, No. 10 in 2022, dropped to 11th. No. 24 South Africa and 25 Kenya were highest among countries in Sub-Saharan Africa.” A few survey highlights (directly quoted):

  • Net-Zero Commitment – 53% of logistics executives say their companies have committed to net-zero emissions, and another 6.1% say their businesses have achieved net-zero.
  • Climate Change – Half say climate change is a concern their businesses must plan for, while another 18% say it is already affecting them.
  • Emerging Markets – 55% say they will be more aggressive in emerging markets expansion and investing or leave their existing plans untouched despite fears of recession.
  • Digital Forwarding – Respondents say the biggest advantage is improved tracking and visibility; the biggest disadvantage is error/exception management.

New DHL Global Connectedness Index Released

On March 15, DHL and New York University’s Stern School of Business released the new DHL Global Connectedness Index 2022, which analyzes data from 171 countries and territories and reveals how flows of trade, people, capital, and information move around the world. “The report shows that international flows have been remarkably resilient in the face of recent shocks such as the Covid-19 pandemic and the war in Ukraine. After a slight decline in 2020, the composite DHL Global Connectedness Index rose back to above pre-pandemic levels in 2021. The currently available data points to a further increase in 2022, despite slower growth in some flows. International trade in goods was 10 percent above pre-pandemic levels in mid-2022. International travel remained 37 percent below 2019 levels in 2022, but doubled compared to 2021…The latest DHL Global Connectedness Index data clearly debunks the perception of globalization going into reverse gear,” states John Pearson, CEO of DHL Express.

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