M&A proved to be a major theme in the freight forwarding business in 2016. And since the industry is still extremely fragmented, further consolidation is very likely in 2017 — at least among players that are not busy integrating new units and activities.
Another trend will be investments in IT and technology. While most of us would agree that freight forwarding is a people business, technology and IT systems definitely also represent a competitive advantage. To many, driverless trucks, drones, automated ground vehicles, etc., are science fiction, but the reality is that the technology is here even if the infrastructure is not.
In 2017, I am convinced that we will see more automation, more electronic data interchange and more online self-service interfaces to the degree that it is possible. I do not see a full conversion to robotics or a complete disintermediation from cloud-based technology start-ups, but I expect that we will see the beginnings of an irreversible development, which we must be part of.
It is my hope that these developments will factor in green technology and solutions so that C02 reductions will be also be “automatic” in the future. If we are to meet the targets of the recent conferences on climate change, a lot of changes need to be made — the kind of changes that carry huge investments in technology and infrastructure, and that cannot be implemented over night.
It is impossible to lead the way without losing ground. So what can we do? We can start talking about it and work together to find global solutions to a global problem. Personally, I will do my best to raise the issue and make this a trend within freight forwarding in 2017.