Future Freight/Logistics Industry future market trends in New Zealand
The major megatrends that can impact the industry in the next 30 years are:
Varying demographics and geopolitics will impact on freight and logistics operations. With the population increasing every year, it will demand growth in freight sector for meeting supply and demand patterns. With increasing house/property costs in main cities, people might think of going to suburban areas which can boost trade flows. This will lead to expansion of freight transportation network. With relaxation of Covid-19 policies and restrictions in future, geopolitics of New Zealand with other countries can enhance international network.
For achieving sustainable profitability, industry will increase operational efficiencies. This will be done through maintaining costs, collaborations/alliances and increased loading. Ports being the major key player in freight and logistics in New Zealand will put more pressure to associate with land transportation in a cost effective manner.
Digitization will play an important role in freight industry as every player will look forward to increase and improve supply chain while reducing costs and errors. This will be driven by data collection, software automation in the freight ecosystem. The concept of smart ports will emerge in which all players in the logistics industry can merge to play their roles for running a smooth supply chain. However, the idea can intake many hurdles including lack of constant data as whole information sharing might not be suitable for all businesses, but it expected that New Zealand government can play a vital role to keep everything running.
Consumer behavior is crucial in every business as it can shift demands and supply chains:
- With the threat of climate change, people now prefer using sustainable products which can decrease carbon emissions and want to know source of products. This trend has increased the concept of usability of local grown products. Consequently, up-stream suppliers will be under pressure to meet all demands and will give a chance to people in the supply chain to boost up their services.
- E-commerce has leaded the way towards same day delivery services. This consumer behavior will be on the rise in coming years due to gain in purchasing power and urbanization. New and efficient logistic models will be required to balance the deliveries. There will be pressure on 3PLs, retailers and freight loaders to fulfill the constraints and logistic agreements.
Future Challenges for Freight and Logistics Industry in New Zealand
Immense stress on road networks
With increased freight flows there will be a need to improve land network. Major population dense areas include Auckland and surrounding regions which will put a stress on already crowded roads. With local sustainable products in demand, supply chain networks will be a major hit as they can sourced from anyplace in New Zealand. Large number of work force will be required to manage and control land transport network. Currently, young people might not adopt industry as their careers; however the current Covid-19 situation can alter their way of thinking if proper measures and introduction of technology are introduced.
Digitization is an important constituent for this industry. Contribution of every member of supply chain is critical for digitally integrated supply chain systems. However this can be a challenge for New Zealand government to keep up with the technological advancements for improved service outcomes.
Freight and logistics industry will need a roadmap through a sustainable vision. This is due to the reason of implementation of strict environmental policies by the government which includes using substitute fuel source. For overcoming these factors wider investments will be needed that can assist sustainable environment and operations.
Role of our business in New Zealand Freight and Logistics Industry
With an overview of New Zealand’s Freight Industry, its prospects and challenges, our business can play evolutionary role by using focus technology. With increasing numbers of freight every year, load boards can help to tackle up the current and future scenarios.
The technology has made freight movement more feasible for brokers and shippers. Stakeholders can accelerate transportation of goods more accurately. As same day delivery is trending and a major challenge in the near future, it could help it tackling this threat towards the industry.
Working with large warehouses for transporting freight can promote trusted business partnership. You can take advantage of your strengths, like if you know the roads and routes well, you can utilize them with a renowned company for a mutual benefit.
Only a load board with authorized people can help you to coordinate your operations. We offer services from trustworthy people who can benefit your business including saving time for doing research on people, loads and capacities.
As geographical demarcation of New Zealand shows that most productive route for trucking is Auckland region down to south, the reverse route; from south towards north might be opposite in terms of finances. These trucks might be operating some empty miles with low load that can stagger some percent of total road freight miles and low profit with increased fuel and operational costs. Our services can help to facilitate this problem with providing load efficiency.
Generally, here are the positive aspects for using our services:
- We have a multi-sided platform with carriers and shippers as audiences willing to consult
- You can find your suitable party (shipper/carrier) for transporting with complete satisfaction
- We preserve and implement rules of conduct for payments for all participants to build trust