The transport and logistics sector is quite broad, as it includes both railway and road transport, maritime, aviation sub-sectors, as well as passenger and cargo transport. Logistics involves the planning, control and execution of services with the aim of reducing costs as efficiently as possible while being able to meet the needs of customers-consumers. Learn more about how logistics companies will develop in the near future and what challenges they will have to face.

The logistics industry has a significant economic impact

Transport is a strategic sector of the European Union (EU) economy, which directly affects the daily life of citizens and is able to ensure a uniform and, most importantly, continuous flow of goods. A fully functioning transport and cargo transportation system is the cornerstone of the entire industry, as interconnected transport networks are an absolute necessity and a mandatory condition for realizing the goal of creating a single European market.

It is certain that logistics companies face various challenges every day. In addition, the industry is increasingly affected by digitization and automation processes, as only this can minimize human factors and the number of errors.

Today’s and future challenges

The war in Ukraine still creates a significant economic burden. It is necessary to completely rebuild supply chains, excluding certain routes or countries from them and instead creating completely new opportunities. Likewise, the rapid rise in electricity prices also increases freight transportation prices.

Additional risks or circumstances of force majeure, such as natural disasters, military operations, various political events and other equally important factors, must be taken into account every day. Undeniably, not only international cargo transportation is affected in this way, but the entire transport and logistics industry as a whole.

At the same time, sustainability issues must also be a priority when planning and providing all kinds of logistics services. Nowadays, the concept of “resilience” is used more and more often in the field of transport and logistics, which means sustainability and at the same time the ability to resist various adverse environmental influences.

Smart logistics system: today’s necessity

A smart logistics system has become a necessity, because with its help it is possible to adapt to any kind of change much faster and more efficiently. It’s no secret that recent events, such as the consequences of the Covid-19 pandemic and the war in Ukraine, have greatly affected the transit industry, resulting in a decrease in ground freight. Taking into account experts’ forecasts, it is estimated that rail freight transportation will no longer be in such demand. This is because, for example, the transit route to China is no longer complete, as it includes countries such as Kazakhstan, Russia and Belarus. But there is also good news – it is quite possible that new transport chains will develop in the direction of Ukraine.

Latvia’s ports and, therefore, sea cargo transportation, being able to provide basic regional needs, could be in demand. We also hope for the development of the air industry, taking into account that new cargo terminals are being built and we have established good business relations with foreign partners, which indicates that air cargo transportation and its volume will not decrease in the near future.

Companies do not always need personal fleets of vehicles

Logistics companies can operate effectively and efficiently even without a fleet of personal vehicles. Currently, the most important thing is to be able to ensure a continuous process and its control, using the advantages provided by information systems. Later, depending on the specific order, international cargo carriers and suppliers are hired. It should be noted that the newly created supply chain can operate in any direction, transporting goods to almost all countries of the world. Latvia is a very suitable country for this for several important reasons. Firstly, we have one of the most advanced information systems and, secondly, we also have very knowledgeable and competent specialists.

Another development trend worth mentioning is the sharing economy. This means that a specialist can be physically located, for example, in Spain, but work in a company whose legal address is in Latvia.

Logistics companies face various challenges every day, but managing logistics processes should not be one of them. We, Cargologs, are an e-commerce logistics platform created with the goal of fast and high-quality transportation of all types of cargo. We invite you to contact us to receive an individualized price offer!