Driver Shortage

We all know that without drivers, goods cannot get from one place to another which will result in a supply chain’s breakdown. 

Trucking is the primary source of container transport once it has been unloaded at a port. A shortage of trucking would mean capacity-constrained facilities due to container volume that sits idle at the port. 

When raw materials and products do not move, business operations will suffer as they cannot enter the inventory process and be sold to customers. 

According to Forbes magazine, there is one qualified driver for every 9 job postings. Thus, the problem lies in the shortage and qualifications of drivers. Additionally, small trucking companies have little to no incentives or salary increases due to the rising prices. Thus, stopping them from investing in new trucks and hiring new drivers. 

To keep the supply chain moving, companies must adopt the new trends in the supply chain that tackles driver shortage and invest in driver retention which includes driver incentives to be given by companies. 

Logistics Statistical Figures in 2023That You Should Know

1. The global freight logistics market size is estimated to increase by USD 319.65 million from 2022 to 2027.

2. Goods purchased and shipped at higher prices will likely be sold before Q1 2023, and the downstream effects of lower shipping costs should become apparent in 2023. 

3. Automation and artificial intelligence (AI) have been on trend for some years now. In 2023 it is becoming more common in a variety of processes.

4. The labor force in 2022 is already experiencing the lowest level ever and 2023 is not going to improve.

5. At the end of 2022, DPDHL launched the “GoGreen Plus” option as an upgrade to every customer order.

6. According to Transport Intelligence, the latest market size and forecast data reveal the Global Contract Logistics market will grow by just 3.1% in 2023, reaching a value of €253,706.3m.

7. 2022 has shown more than the previous years that one-dimensional supply chains can break down under certain conditions. Thus, multi-channel logistics, considering all relevant modes of transport, will become even more important in 2023 and beyond.

8. If the global economy continues to move toward recession in many countries, consumer demand is likely to decrease in 2023.

9. The skills shortage in the transport industry will continue in 2023. This will make it increasingly difficult to meet customer demand.

10. After the events of 2022, that could change in 2023. The next risks are the possible global recession, new closures, conflicts, or noticeable climate impacts. 

11. The use of robotics in warehouse management or customer care is one trend that is already relevant for 2023.

12. The effects of the COVID-19 pandemic, the rising cost of living, and geopolitical unrest can be expected to be felt in 2023.

13. According to a McKinsey survey, 90% of supply chain leaders reported investing in digital supply chain management technology since 2021, with 80% expecting to continue to invest in 2023 and beyond, often to support advanced planning.

14. 2023 is widely tipped to bring a slowdown in economic activity with the current geopolitical conditions and rising inflation.

15. Transport Intelligence revealed that mergers and acquisitions have been increasingly active in the past two years due to uncertain and turbulent conditions. With the economic situation deteriorating, it is likely that 2023 will bring further consolidation in freight forwarding, as companies continue to look at increasing their capabilities and geographical reach.

16. Paper is still commonly used in supply chain processes. However, it is quickly being replaced by digital communications which are expected to continue in 2023. 

17. With so many factors affecting diesel prices and so much volatility in the market, businesses moving cargo will need to find ways in order to adapt to this continued rise in prices in 2023. 

18. In 2023, consumers will be less forgiving and poised to buy from retailers whose delivery performance is proportionate with the rest of the shopping experience. Retailers will not only face more demanding consumers and focus on delivery performance but will also find ways to decrease rising home delivery costs.