What forces are shaping logistics in Q4 2023?

In the dynamic world of logistics, we are constantly adapting to evolving market conditions and forces that shape our industry. As we navigate the complexities of Q4 2023, we are committed to leveraging market insights and intelligence to enhance our business performance.  

What forces are shaping the market for logistics providers?  

By analysing Porter's five forces of industry-shaping, we can identify key trends and challenges that will impact our industry. 

• Threat of new entrants: The barrier to entry in the logistics industry remains high due to the extensive network, experience, and infrastructure required to compete effectively. While data-driven logistical companies are emerging, asset-based carriers like Ewals Cargo Care are expected to thrive in the long run as capacity constraints persist. Legislative developments, such as sustainability reporting standards and the Mobility Package, further raise the entry barrier and underscore scale's importance in mitigating overhead costs.

• Bargaining power of buyers: The bargaining power of buyers is moderate, with prices fluctuating in response to market conditions. At Ewals Cargo Care, we prioritize building long-term relationships with our customers and strive to be the best rather than the cheapest. 

• Threat of substitutes: The threat of substitutes in the logistics industry is considered low. While 3D printing, drone deliveries, and near-shoring activities are gaining traction, the demand for high-quality logistics services remains strong. 

• Bargaining power of suppliers: Similar to the bargaining power of buyers, the bargaining power of suppliers is moderate. As a service provider within the supply chain, we engage in mutually beneficial relationships with our suppliers. The COVID-19 pandemic has highlighted the need for increased lead times and predictive capabilities, influencing our approach to supplier management.

• Rivalry among competitors: The logistics industry is fragmented, with numerous companies vying for market share. While consolidation is possible in the future, we at Ewals Cargo Care favour collaboration and co-creation to achieve economies of scale and strengthen our competitive position.

What disruptions are shaping the logistics market?  

Nex to that, we recognise several fundamental points of disruption that are shaping the logistics landscape: 

• Digitization paradox – there is resistance to the digital world, while seeing the benefits it has a positive result. 

• EU Legislation: Toll and maut cost increases, sustainability reporting requirements, and Mobility Package implications are transforming the regulatory environment for logistics. 

• Driver shortage: The industry faces a growing driver shortage, which puts pressure on driver retention and necessitates innovative approaches to talent management. 

• Market volatility: The fast-paced and ever-changing nature of the logistics industry demands agility and adaptability to navigate market fluctuations and disruptions. 

• Digitisation: Embracing digital transformation is crucial for logistics companies to remain competitive and efficient. Interconnectivity and data-driven decision-making are essential for long-term success. 

• Sustainability: Complying with the energy transition and reducing our carbon footprint are top priorities for Ewals Cargo Care. We are committed to exploring alternative fuels and implementing sustainable practices across our operations. 

• Technological advances: Technological advancements, such as autonomous driving, electrification, and hydrogen-powered vehicles, hold immense potential for the logistics industry. We continuously monitor these developments and explore opportunities for integration into our operations. 

• IoT and AI: The rise of IoT and artificial intelligence is transforming the logistics industry. We embrace open AI platforms and explore applications like Chat GPT to enhance our operations and customer interactions.

• Aging workforce: Attracting and retaining talent in the face of an ageing workforce is challenging for the logistics industry. We recognise the importance of knowledge transfer and mentorship to preserve our intellectual property and tacit knowledge while attracting the next generation of logistics professionals. 

By understanding and responding to these forces of disruption, we at Ewals Cargo Care are well-positioned to navigate the challenges and seize the opportunities in Q4 2024 and beyond.  

Market intelligence plays a critical role in our ability to stay ahead of the curve, make informed decisions, and maintain a competitive edge in the dynamic world of logistics. Volatility is here to stay and developments will only increase in pace – therefore, it will be key to look in foresight and increase predictability and flexibility. 

‘’We believe that companies manageable of co-creating are to thrive in the long-term – exchange and share ideas, keep on discussing industry trends and actively team up on suitable subjects to improve the playing field in our industry if COVID-19 showed one thing, our industry's vital importance in keeping planet earth in motion.’’ – Freek Heesen, Manager Product Intelligence 

‘’More qualitative and trustworthy partnerships don’t add up – they compound. That’s the power of co-creation and synergetic outcomes.’’ – Freek Heesen, Manager Product Intelligence.