Logistics providers have traditionally been centered on helping importers on business-to-business (B2B) transactions defined from chasing a manufacturers cargo ready date, loading goods into a container, international shipping, customs, pickup of a container to a distribution center, storage of goods, transportation to another distribution center and, ultimately, to consumers via online and offline channels.
The rapid growth of business-to-consumer (B2C) transactions defined from manufacturing, tendering goods via air or ocean, pickup at destination, customs and tendering to a final mile carrier have created many new players. From the hundreds of new gig-economy final mile providers to container freight station applications to new brokers engaging in T86 entries, the potential to cut out distribution costs ultimately leads to lower landed cost without much sacrifice to transit time.
I see new technologies in B2C driving innovations with unrealized potential. In 2023, I’ve seen the maturity of B2C cross border e-commerce take market share from traditional US 3PLs — i.e., warehouses, truckers and freight forwarders. The players developing technology for integrated solutions for origin pickup to consumer door will thrive in 2024 as I predict B2C volumes will drive growth in air freight, ocean consolidation and customs (T86) businesses.