Logistics & Supply Chain Trends in 2021

May 7, 2021

Like any industry, the logistics and supply chain industry changes quite a bit as time goes on. As new trends emerge, the very definition of logistics changes, as does the way we view supply chains. Here are some of the biggest logistics and supply chain trends in 2021, as well as the impact they have.

With the COVID-19 pandemic of 2020, there was a huge shift in the way we do everything. From enjoying time with friends and family to eating a meal, every part of daily life has changed a bit with the pandemic. It should come as no surprise, then, that the pandemic had a huge effect on logistic and supply chain trends.

One interesting change that occurred as a result of the pandemic is Mexico becoming the number 1 trade partner of the United States. Between the China-US trade war and the pandemic, Mexico is sort of becoming the new China for the United States. This is especially important for the automotive industry, which is turning to Mexico as a means for manufacturing. This should result in a serious shift in the auto industry in the coming years.

COVID-19 also changed the way we view work and productivity. Rather than relying on traditional tools, shippers and carriers are using digitization and software to make the transition to the online world. Digital signatures and transactions are modernizing the way shippers and carriers do business, which in turn is bringing logistics and supply chain processes into the digital age.

The signing of the new North American Free Trade Agreement and increased stability of trade relationships will prove to be a game-changer during the Biden presidency. Expect the global supply chain to shift to North America, where more manufacturing will be brought to the United States and Mexico.

Transporting COVID-19 vaccines has been a hot topic of late, which has led to an increase in demand for refrigerated cargo and cold chain solutions. While the safeguards that are currently in place are designed to ensure the vaccine is safely delivered, these safeguards will likely be in place for cold chain solutions in the future.

the impact of 2020 and the pandemic on supply chains

The Impact of 2020 and the Pandemic on Supply Chains

Looking toward the future means understanding the past, and 2020 was a big year when it comes to supply chains. While many industries struggled in 2020, the freight business actually increased contracted truckload volumes by 27% year over year. With the pandemic continuing to affect services businesses more than shippers and carriers, there’s good reason to believe the upswing in the freight business will carry over into the coming years. If there’s one thing the pandemic has made the business world realize, it’s that finding safer, smarter processes can be great for both stopping the spread of disease and growing a business.

Emerging Trends in the Logistics Industry

With all the changes going on in the world today, things will continue to evolve at a rapid pace. Here are some of the emerging trends you can expect to see in the logistics industry soon.
Green logistics are becoming increasingly important as more and more people aim to protect the environment. However, green logistics also help reduce costs, boost customer loyalty, and increase growth. Harvard Business Review estimates that businesses who focus on sustainability tend to grow at a rate of about 6 times faster than other businesses.

With changes in the way we view food safety and other health-related shipping issues, expect refrigerated shipping to grow quickly in the coming years. Shippers will have to expand their warehouses and fleet of trucks to include refrigeration, which will become a huge part of the industry.

As technology evolves, the Internet of Things (IoT) will continue to play a larger role in the logistics industry. IoT devices can now take advantage of 5G to work at even faster speeds, making technology an even better way to keep track of shipments from the first step all the way to the last.

Do you Need the Help of a Professional Logistics Company, or Trucking Broker? Osage Specialized Transport is Ready to Meet Your Unique Needs

With the expected changes in logistics and supply chain trends, business owners need to change the way they view logistics. If you’re looking for a locally owned and operated business with decades of experience to help you determine and meet your freight needs, Osage Specialized Transport can help. We have a wide range of flatbed trucking, hauling and other services available. If you need the help of a professional logistics company or want to learn more, call Osage Specialized Transport at (303) 326-0374.

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