Top Supply Chain & Logistics Trends In 2016

Global logistics industry is always influenced a few or more prevailing trends every year. During 2016, too, there will be several fads dictating the international market of freight forwarding.

When considered as a whole, 2015 was neither good nor bad for the logistics industry so far as innovations and acquisitions were concerned. Now, experts have detected and examined some key trends that would affect the global freight forwarding industry all throughout 2016. Let’s have a look at them in detail:

• The United States of America will continue to drive global economy, and it means that the nation would take in imports from all over the world. As such, exporters in Europe and Asia can expect transpacific freight volumes to strengthen.
• Though forecasting the prices of oil is an unpredictably tough task, many analysts firmly believe that the current rates would begin increasing by the middle of the year. As such, road freight services all throughout Europe can become a wee bit expensive. But because it is impossible for passing on the increases to customers, service providers must expect a small decline in their profits, unless, of course, they take measures to counteract it.
• There were plenty of natural disasters, such as hurricanes, drought, floods, etc. in 2015 that affected several global supply chains. This means that natural calamities are becoming more frequent than before. As such, global retailers and manufacturers should start implementing measures to increase the resiliency, adaptability & flexibility of their supply chains.
• International logistics industry will continue to be impacted by innovative technologies as well as business models throughout 2016. As the sector keeps evolving, modern-age technologies such as 3D printing, autonomous vehicles, sensor technology, etc. will have their influence. Existing operators may also start adopting Uber-like techs for increasing their efficiency.
• If confusion associated with implementation of Safety Of Life At Sea (SOLAS) measures by the International Maritime Organisation is not addressed, it can have a huge impact on international freight forwarding. Another change that may affect global forwarders is the Union Customs Code of EU, which is an initiative for harmonising and replacing the incumbent Customs within Europe.
• Due to the recent security breaches in Europe (terrorist attack on Paris), administrators are contemplating the implementation of increased border controls. Such controls can affect the supply chains by causing delays, which would necessitate re-assessment of inventory strategies.

This is basically how the supply chains and logistics management sector are going to be affected by different trends during 2016. Apart from that, influx of refugees and other security problems can also have severe impact on the international market of logistics management.