Before questioning what logistics trends are and where logistics is heading, it is beneficial to look at a few key facts. Fifty years ago, in the 1970s, the world population was around 3.5 to 4 billion. By the year 2000, the global population exceeded 6 billion, and by 2020, we are facing a world nearing 8 billion people. Population growth does not only mean more demand and more production. Today’s individuals, with lifestyles different from those of their ancestors, desire products not only from their own countries but from other continents as well. This means that logistics must grow in parallel with the global population.

LOGISTICS TRENDS

There are two major forces shaping the direction of the industry: technological advancements and concerns about sustainability. These two key concepts continue to shape today’s business world. Before diving into micro-level changes, let’s take a general look at these two areas.

TECHNOLOGY

Unsurprisingly, the primary driver of logistics trends is technological development such as IoT, 5G, AI, and cloud solutions. First, the decreasing cost of IoT usage has made this technology more accessible for organizations of all sizes. The concept of vehicles “talking” to humans has long been in use in logistics, making planning easier. Now, IoT takes this interaction to the next level, allowing vehicles to communicate with other systems, becoming aware of one another. Imagine a vehicle identifying where a malfunction occurred and which spare part is needed for repair. Upon return, it can notify the maintenance department to order the required part—eliminating downtime for the next trip.

Thanks to cloud storage and big data analysis, we now have greater opportunities to optimize our operations. Beyond just finding optimal routes and reducing fuel consumption, we can forecast malfunctions, schedule preventive maintenance, and determine optimal maintenance intervals. It also enhances CRM and marketing efforts, helping us retain existing customers and convert prospects into loyal clients.

To quote PWC’s “Shifting Patterns – The Future of the Logistics Industry” report:

“Digital fitness will be a prerequisite for success: The winners will be those who understand how to leverage a range of new technologies from data analytics to automation and platform solutions.”

SUSTAINABILITY

As expected, one of the most crucial logistics trends is sustainability. The new generation’s concern for climate change is encouraging all brands to take concrete steps. In addition to social pressure, legislative bodies in developed countries are enforcing regulations that require action.

The United Nations Framework Convention on Climate Change signed in Paris in 2015 was ratified by many countries. The European Union continues to implement measures to reduce greenhouse gas emissions, aiming for a 40% reduction by 2030. Naturally, this requires regulations that directly impact logistics companies. Here are a few examples of decisions related to fossil fuel usage:

In the UK, the sale of fossil-fueled vehicles (including hybrids) will end by 2035. The 2050 goal is zero emissions for all vehicles.
Ireland plans to ban petrol and diesel vehicles by 2030.
Norway’s parliament set a target of zero-emission vehicles by 2025.
France aims to ban the sale of fossil-fueled vehicles by 2040.
The world's biggest emitters, China and India, have also announced strong measures against fossil fuel use.

Especially for companies engaged in international transport, tracking legal changes in partner countries is essential. To reduce carbon emissions, shifting logistics to railway transport could be a viable solution.

However, it is also important to consider other dimensions of sustainability beyond environmental impact. Economic sustainability of the business, continued training of personnel, and social sustainability are equally vital.

LOGISTICS TRENDS – THE FUTURE OF LOGISTICS

COLLABORATIVE OPERATION MODELS

In the coming years, logistics companies will increasingly adopt collaborative operation models to enhance profitability and remain competitive—just as seen in other industries. New technologies allow for higher efficiency through collaboration, and companies of all sizes can benefit from these synergies.

CHANGING CUSTOMER EXPECTATIONS

Another significant trend is adapting to changing customer expectations. Today’s clients expect logistics services that are faster, more flexible, more efficient, and fully traceable. Additionally, customers expect companies to be more transparent. Advancements in technology help us meet these expectations. Shipments can be tracked in real time, including vehicle stops and estimated arrival times, using various software. Integrating customers into these systems builds greater mutual trust.

THE RISE OF START-UPS

Start-ups are another game-changer in the logistics industry. These companies, entering the sector as either customers or suppliers, are reshaping industry dynamics. Armed with cutting-edge technology, they pose a major challenge to traditional, slow-moving logistics companies by offering faster, cheaper, and more traceable systems. On the customer side, start-ups prefer working with companies that can adapt to their technological infrastructure. Even if their volumes are small now, it’s important to recognize the exponential growth potential these start-ups carry.

When reviewing industry reports and future projections of leading companies, it becomes clear that technology is the main catalyst for logistics trends, while sustainability remains one of the most critical issues. Every company must evaluate how these trends will impact their future plans and analyze how current and prospective clients are responding to these developments.