Trimble has released the annual Transportation Pulse Report by Transporeon, a Trimble Company, which unveils key developments that will shape the transportation and logistics sector in 2025. Members of Indago's supply chain research community and more than 100 European and North American supply chain and logistics executives from Transporeon's shipper and carrier customers were surveyed for the report.
Cautious Optimism for 2025
Respondents to the survey named economic conditions (56%), geopolitical events (50%) and environmental regulations (36%) as the top three factors that will shape the industry in 2025. The struggles of the manufacturing industry in Europe and the US, global inflation, slow economic growth and regional conflicts mean that uncertainty and risk will continue to prevail.
In this context, shippers and carriers show different levels of optimism about next year's transportation market:
- Despite the conjecture, carriers and 3PLs on both sides of the Atlantic show strong optimism (75%), likely due to the increased freight demand and rates, coupled with a gradual capacity reduction.
- Shippers, however, seem less confident as the current trends forecast increased rates and tighter capacity: only 38% declare feeling optimistic about 2025.
Cost Control, Market Expansion and Digitization are High Priorities
When asked about their top priorities for 2025, shippers and carriers highlight maintaining and increasing profitability:
- Cost reduction is the top priority for the majority of all respondents surveyed (61%) and is particularly significant for shippers, at 76%.
- Market expansion surpassed cost reduction for carriers/3PLs: 58% highlighted it as their key focus, likely reflecting a desire to capitalize on anticipated market condition improvements following a downturn.
- Supply chain digitization garnered 51% of the total votes, with European respondents showing a greater inclination (59%) than their U.S. counterparts (39%).
- Sustainability initiatives secure 44% of the votes, signifying their growing importance in the sector. European executives value sustainability the highest, reflecting Europe's more advanced implementation of sustainability-related regulations and emissions standards.