Transport Market Forecast:
The global transport (Air, Road, Sea freight) market was valued at 3.263 TEUR in 2019. It is projected that transport market will be valued at 4.478 TEUR by 2027. Increase in approx. value of 37% between 2019-2027.
Global Market Overview:
Coronavirus pandemic and post pandemic situation have caused shortages in availabilities of transport means on global scale. Lack of container ships, containers, logistics personnel, truck fleets, logjams at port and logistic centres around the world combined with the higher rebound in consumer demands for goods have caused skyrocketing of freight rates to record levels. Delta-variant COVID-19 outbreaks in several countries and temporary closure of ports and logistics centres had stretched the supply chains causing further bottlenecks with congestions at logistics networks globally. The market situation caused the bottlenecks in the supply chains with equipment and goods shortages around the world. Such situation has not been seen in transportation in recent history.
Ports, Air, Rail, Road cargo terminals are receiving increasingly large amounts of freight and not being able to meet market demands. Therefore, companies & operators are and should be looking at alternative solutions of: multimodal transportation (combining various modes of air+road/rail, sea+rail/road transport); booking for bulk/non-container vessels; creating buffer stocks; diversification of supply sources; sourcing for new partners, relocation of production facilities.
Overlooked issue of current troubled transport & supply chain markets is more significant for global economy. Governments across the globe had implemented national economical stimulus measures to fuel economic growth due to impacts of Pandemic. Systems pumped with cash charge growth around the globe driving surge in demands for commodities & further development of construction market.
Global supply chain disruptions and surging prices of transports are being reflected in increase in consumer and construction material prices. Some goods shortages and delays in deliveries are now common. Diversification of supply chains and sourcing for new partners should become crucial for any business activity.The positive impacts of troubled global transportation market speed up evolution towards digitalization, home office work for certain personnel, outsourcing of handling to specialized freight forwarders and freelance professionals. However, this will not be enough to mitigate market challenges that face the transportation industry. Companies involved in international trade & transportation must learn and adapt to overcome logistics problems as they come along.
Conclusions:
Logistics networks with sea, air, road, rail freight forwarders are running at maximum capacity across the globe for months, in order to deliver with minimum delay. Order tracking, transports monitoring and good coordination between partners is a necessity to minimize risks and overcome transport challenges. Collaboration, frequent communication with supply chain professionals is crucial. Shipping disruptions won’t be ending soon. Therefore, it’s important to coordinate activities and exchange information in timely manner. All market players with manufacturers, construction companies, freight forwarders, end users, must stay flexible, seeking alternative solutions to continue overcoming pilling obstacles.
While the spread of Covid19 and its various variants continues in many countries and regions, risks of affecting supply chains remain.
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