With 2020 being one of the most trying years in perhaps a century with the impacts of COVID-19 felt throughout the world, both personal and commercial, the Australian Logistics Industry is bracing itself for a good year in 2021.
Based on research report by Global Newswire, it has been said that the Australian logistics industry, and not to mention the freight market as well, is estimated to increase at a rate of 2.5% between 2019 to 2024. The market in itself is focused and driven by the infrastructural investments, which have provided a much-needed boost to the capacity needs over the years.
Furthermore, based on a market analysis it was also noted that the threat of new entrants into the market is low due to high setup costs and intense competition between existing Australian logistics industry players. Furthermore, the Australian Government and regional governments have also made firm commitments in budgets to make due improvements to the Australia logistics industry and freight infrastructure.
Key market trends to watch out within the Australian logistics industry in 2021 include the likes of online shopping or ecommerce, as well as increases in in urban freight transport.
Spikes in Ecommerce Use
Despite the COVID-19 lockdown situation, with the stay at home order, many business have resorted to delivery services and online purchases to ensure the safe delivery and functioning with a lower work force. This has spiked ecommerce use and also increase delivery and courier services. Furthermore, marketplaces like Amazon and Ebay has also facilitated the means of which deliveries are easier and established the necessary resources to doing so and has paved the way for smaller local businesses to also follow suit and grow their businesses further.
Growth in Urban Freight Transport
Transport of small personal or business goods is linked to the increase in online shopping patterns. The insight is also derived by the statistics that light commercial vehicles have increase by 35% between the years 2006 to 2014, which was a good indicator towards this growing economy. Also with improving infrastructure and transport corridors between cities and states, this will be a more common occurrence. In addition, the possibility of carrying out deliveries during non-peak hours is also foreseen as a trend to expect in the coming times.
With the changing landscapes and temperatures within the market, the Australian logistics industry can also see the adoption of various technologies and processes meant to improve efficiencies. From adopting modern tech, such as the likes of warehouse management, automation, drone deliveries and more, the trend looks towards improved planning and delivery mechanisms.