Reducing costs, market expansion and digitization are high priorities for shippers and carriers next year, according to Trimble's Transportation Pulse Report.
The fifth edition of the report, authored by Adrian Gonzalez, president of Adelante SCM and founder of Talking Logistics and Indago, analyzed five years of research, learnings and advice about the transportation industry, and surveyed more than 100 European and North American supply chain and logistics executives.
Transporeon
The majority of respondents (61%) said cost reduction is a major focus for next year, particularly for shippers at 76%, compared to carriers and 3PLs at 52%. The report indicated that shippers are likely to focus more on cost reduction efforts due to expected increases in rates, cost pressures from environmental regulations and global trade tariffs.
For carriers and 3PLs, market expansion overshadowed cost reduction, with 58% highlighting it as their key focus, likely reflecting the aim to leverage potential market improvements.
Fifty-one percent noted supply chain digitization as another priority – European respondents (59%) more so than its U.S. counterparts (39%).
Sustainability initiatives also show a growing significance, with 44% noting it as a priority.
Tentative optimism for 2025
Amongst other key findings, 75% of carriers and 3PLs indicated strong optimism about the transportation market next year, which the report said could point to a potential increase in freight demand and rates. This is in contrast with shippers, only 38% of which said they feel optimistic about the coming year as they expect to face tightening capacity in 2025.
Talking about expectations on the transportation market in 2025, ‘challenging’ was the word most submitted, along with other related words such as volatile, unstable and dynamic. However, other less-than-daunting words were also chosen, such as ‘growing,’ ‘expanding’ and ‘possibilities.’
The survey reflects a broader concern for the global economy and geopolitics beyond transportation and logistics, said Philipp Pfister, chief customer experience officer at Transporeon.
Transporeon
Respondents said in the survey that economic conditions (56%), geopolitical events (50%), and environmental regulations (36%) are the top three factors they expect will impact the industry. Challenges such as the manufacturing industry in Europe and the U.S., global inflation, slow economic growth and regional conflicts could point to further uncertainty.
U.S. respondents also highlighted cybersecurity threats (26%) and trade policies/tariffs (35%) as notable concerns.
Technology integration and automation adoption remains muted
“While digitization won’t be the answer to everything, companies recognize the benefits and aim to use digital tools to control costs, better manage customer expectations and further sustainability practices,” Pfister said.
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There’s a significant gap between interest and implementation on digitization. Fifty-four percent, including both shippers and carriers, expect automating 25% or less of their transportation processes by the end of next year. Only 10% said they anticipate automating more than 75% of their transportation processes or transactions.
The report indicated potential for growth and adoption of technologies such as AI, machine learning and process automation. While global respondents identified AI as the fourth most influential trend shaping the industry, AI ranked as the second most significant for carriers and 3PLs.
“This difference might be linked to carriers’ focus on market expansion, as AI and advanced platforms can facilitate connections with a wider range of shippers and streamline freight matching processes,” the report said.
