What's Coming for Logistics in 2025?
Dec 5, 2024
Archival Garcia, CEO, Fluent Cargo.
A lack of labor, U.S./China trade tensions and Artificial Intelligence, says Archival Garcia, CEO, Fluent Cargo.
A: There won’t be one single disruptor, but the skilled labour shortage will undoubtedly be one of our industry's most critical challenges in 2025. We're already seeing this impact across supply chains, particularly in shipping where traditional processes and outdated systems make it difficult to attract talent. Immigration restrictions are further limiting the available workforce pool, affecting national productivity.
As companies race to implement automation and technology solutions, finding skilled professionals to manage these transitions will become increasingly challenging. This talent gap, combined with ongoing technological disruption and evolving customer demands for price transparency, is pushing the industry toward more regionalised supply networks rather than long-haul supply chains.
A: All eyes are on the China-US corridor given Donald Trump is in office and has talked about placing tariffs on China. Expect to see a surge in shipments and a mad rush to get product in if tariffs are looking likely to be implemented.
The dynamic is clear - China has a product surplus while US demand remains strong, making trade logical despite political tensions. A key question for 2025 will be how the tariffs will impact Chinese suppliers and American businesses. As a flow on effect, will other countries like Australia and others in the APAC region see this as an opportunity to build better trade partnerships with China and take advantage?
A: We're already seeing a shift toward diversified procurement strategies and more sophisticated supply chain planning. A notable trend is the move toward vertical integration, with companies taking ownership of more supply chain elements to enhance control and reliability. This is evidenced by consolidations like DP World's recent acquisitions. While improved collaboration across supply chains would be ideal, protective attitudes around data sharing continue to hinder progress.
While AI tools are advancing rapidly, their effectiveness remains dependent on human expertise in implementation. The key challenge isn't just collecting data – it's identifying what's relevant and ensuring real-time accuracy. At Fluent Cargo, we're partnering with universities to develop methodologies for classifying disruptions and measuring reliability. The focus is on building robust frameworks for predictions parallel to developing technological solutions.
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