Mark Baxa currently serves as the president and CEO of The Council of Supply Chain Management Professionals (CSCMP). He also serves as president and CEO of FerniaCreek Global Supply Chain Consulting Group.
As we look toward 2025, the logistics and transportation industry stands on the cusp of transformation. At the Council of Supply Chain Management Professionals (CSCMP), we’re committed to helping industry leaders navigate these changes with insight and strategy. Here are six trends that we believe will form the competitive landscape of tomorrow.
1. Digital transformation and data integration: Technology continues to reshape every facet of logistics. Advanced analytics, artificial intelligence, and machine learning are becoming increasingly integrated into supply chain operations, driving efficiency, reducing costs, and enabling proactive decision-making.
For companies to succeed, they must invest in technologies that enhance data accuracy and facilitate seamless information sharing. Those that do so will be able to better anticipate disruptions, optimize routes, and improve customer satisfaction.
2. Sustainability: As the global community continues to prioritize environmental responsibility, the logistics sector faces growing pressure to reduce its carbon footprint. The adoption of electric vehicles, alternative fuels, and optimized routes can reduce emissions significantly, and many organizations are setting ambitious targets to lower their environmental impact.
3. Supply chain resilience and flexibility: The capacity to pivot quickly in response to disruptions, whether due to natural disasters, geopolitical tensions, or global pandemics, is no longer a luxury but a necessity. Companies are increasingly adopting flexible supply chain models and focusing on diversification to mitigate risk.
4. Nearshoring and reshoring: Bringing manufacturing closer to home—either by relocating it back to the country of origin (reshoring) or moving it to neighboring regions (nearshoring)—not only enhances supply chain agility but also reduces transportation costs, lowers emissions, and lessens exposure to global disruptions. Companies that embrace these approaches can strengthen their competitive positioning, helping them respond more effectively to fluctuations in demand while maintaining cost efficiency and meeting sustainability goals.
5. Workforce development: The logistics industry is facing a talent shortage, particularly in skilled labor and technology-focused roles. As we advance into a more digitalized landscape, we need a workforce proficient in tech and adaptable to change. Organizations must focus on upskilling and reskilling programs to equip their teams with the necessary knowledge.
6. E-commerce and last-mile solutions: E-commerce growth shows no signs of slowing, and with it comes the challenge of meeting rising consumer expectations for fast, reliable, and sustainable delivery. Last-mile logistics remains one of the most complex and costly segments of the supply chain. Innovative solutions, such as urban microfulfillment centers, autonomous delivery vehicles, and drone deliveries, are paving the way for more efficient last-mile solutions.
Looking Ahead
The future of global logistics and transportation holds both challenges and opportunities. At CSCMP, we are committed to supporting our members through these changes, fostering collaboration and sharing insights to navigate the path forward.
The landscape of 2025 may be unpredictable, but with strategic foresight and a commitment to adaptability, we can shape a prosperous future for logistics and transportation. Together, let’s continue to lead the way forward.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
Retailers should take advantage of their brick-and-mortar locations not only to satisfy the growing demand for “buy online pickup in store” but also to support microfulfillment efforts for e-commerce.
Retailers are increasingly looking to cut costs, become more efficient, and meet ever-changing consumer demands. But how can they do so? The answer is updating their fulfillment strategy to keep pace with evolving customer expectations. As e-commerce continues to dominate the retail space and same-day delivery has become the norm, retailers must look to strengthen their “buy online pick up in store” (BOPIS) and microfulfillment strategies to stay ahead.
BOPIS allows customers to order online and pick up items at the retailers' brick-and-mortar location, and microfulfillment involves housing a retailer’s products closer to the consumer to improve delivery times. While these strategies each serve different purposes, both are centered around getting the product closer to the consumer to ensure faster fulfillment. By combining the two, retailers will be primed to meet customers’ needs—now and in the future.
The store of the future: meeting customers where they are
While e-commerce has become the top way for many consumers to shop today, building the store of the future does not mean focusing solely on an online fulfillment strategy and abandoning physical stores entirely. Instead, retailers can take advantage of their brick-and-mortar locations, often already situated in “hot spot” areas, to support microfulfillment efforts for e-commerce. These locations can also cater to the growing demand for BOPIS options, with 61% of consumers choosing to shop with a retailer that offers BOPIS over one that does not, according to recent Körber Supply Chain Software research.
When developing a fulfillment strategy, retailers should look to be able to satisfy customer needs at any moment in time. With the surge in same- or next-day shipping, consumers are no longer as interested in walking around a store to locate products or waiting many days for their items to arrive. Whether it’s on their doorstep or at the storefront, customers want their products as quickly as possible. For example, Körber Supply Chain Software found 29% of BOPIS shoppers would like their products to be ready almost immediately or within 30 minutes after placing an order.
Shoppers know which retailers can satisfy their need for quick fulfillment and will likely gravitate towards those companies for their shopping needs. For example, I recently placed a BOPIS order with a retailer, and when I arrived later that afternoon, my order still had not been picked yet. The retailer let me know that though I was currently there, based on their picking process, there were still multiple orders ahead of mine. While we both saw the product on the shelf, they were unable to fulfill my order given the inefficient process, prompting me to question whether I would continue to be loyal to that retailer.
To be successful, the store of the future must leverage technology to make the physical store a powerhouse for BOPIS and microfulfillment. By leveraging tools that provide insights on inventory location and consumer demand, companies can make informed decisions on the best approach for seamless fulfillment. So, how can companies get started with future-proofing their stores
How to develop a winning hybrid-fulfillment strategy
While meeting consumer demand is top of mind for retailers, operational efficiency and cost reduction are also priorities. It is not enough to just deploy BOPIS and microfulfillment; companies must focus on finetuning these strategies to maximize success. Some ways to do so include:
1. Utilize the “only handle it once” (OHIO) method: In a warehouse environment, companies keep a close eye on how much it costs to touch a product before they sell it. Typically, it is most cost-effective and efficient for companies to only handle it once. A similar consideration should be used for fulfilling orders through BOPIS or microfulfillment. For a BOPIS order, this might mean the product goes directly from the backroom of a store to a customer instead of being stocked on the shelf. For microfulfillment, this might mean going from a microfulfillment site directly to the consumers’ door.
2. Deploy solutions for inventory visibility, management, and communication: To successfully fulfill both online and in-person orders, retailers must have full visibility into the inventory within their warehouses and store locations and across the supply chain. From a BOPIS perspective, stores may be competing with in-person shoppers for the same items on the shelf. Therefore, it is key for retailers to fully develop their backroom inventory strategy, which may mean keeping some inventory off the shelves. While it is important for shoppers in store to have access to the full breadth and depth of assortment, it is also important that shoppers who buy online can get their order fulfilled.
Some retailers have already started operating like the store of the future. Reformation, a sustainable clothing store, has deployed an innovative retail concept at their Boston location where they only showcaseone of each garment. If a customer wants to try on an item, they use a tablet to request their size, and a sales associate retrieves the item from the store’s large backroom and brings it directly to the customer’s dressing room. BOPIS could be added to this arrangement, so that customers shopping in the store will have their needs met and customers shopping from home can ensure they will not receive a late order cancellation or delayed fulfillment.
Furthermore, having full visibility into inventory at physical stores can be leveraged on the microfulfillment side as well. Given that brick-and-mortar stores are strategically placed in areas where there is high consumer demand, their backrooms can also function as fulfillment centers for online orders, ensuring that the product gets into the customer’s hands as quickly as possible.
3. Continually analyze fulfillment strategy and fine-tune operations: Consumer demand is always evolving, making it difficult to predict what will be the next shift in expectations. Given this, it is critical for retailers to continually collect and analyze data, such as stock keeping unit (SKU) velocity, to ensure that they have an effective strategy.
With the demand for faster fulfillment, retailers will need to utilize this data to fine-tune their operations and ensure they are able to access the necessary products. To do so, retailers must examine backroom operations to make sure stocking items can readily be picked and staged for pickup. This approach also makes it possible, and easier, for retailers to ship direct to the consumer if they want to provide that option.
Looking ahead: hybrid fulfillment strategies in 2025 and beyond
As we head into 2025, companies are going to increasingly focus on how they serve their customers and ways to stand out among their competitors. If they have not done so already, many major retailers will utilize both BOPIS and microfulfillment to effectively and efficiently meet customers where they are. Looking ahead, customers will continue to demand faster fulfillment and more convenient ways to shop, making it critical for companies to fine-tune their BOPIS and microfulfillment strategies to avoid falling behind. By utilizing the above tips, decision-makers will have the insights they need to properly stock their stores and microfulfillment centers and meet customer needs.
As another potential strike looms at East and Gulf coast ports, nervous retailers are calling on dockworkers union the International Longshoremen's Association (ILA) to reach an agreement with port management group the United States Maritime Alliance (USMX) before their current labor contract expires on January 15.
The latest call for a quick solution came from the American Apparel & Footwear Association (AAFA), which cheered President-elect Donald Trump for his published comments yesterday indicating that he supports the 45,000 dockworkers’ opposition to increased automation for handling shipping containers.
In response, AAFA’s president and CEO, Steve Lamar, issued a statement urging both sides to avoid the major disruption to the American economy that could be caused by a protracted strike. "We urge the ILA to formally return to the negotiating table to finalize a contract with USMX that builds on the well-deserved tentative agreement of a 61.5 percent salary increase. Like our messages to President Biden, we urge President-elect Trump to continue his work to strengthen U.S. docks — by meeting with USMX and continuing work with the ILA — to secure a deal before the January 15 deadline with resolution on the issue of automation,” Lamar said.
While the East and Gulf ports are currently seeing a normal December calm post retail peak and prior to the Lunar New Year, the U.S. West Coast ports are still experiencing significant import volumes, the ITS report said. That high volume may be the result of inventory being pulled forward due to market apprehension about potential tariffs that could come with the beginning of the Trump administration, as well as retailers already compensating for the potential port strike.
“The volumes coming from Asia on the trans-Pacific trade routes are not overwhelming the supply of capacity as spot rates at origin are not being pushed higher,” Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, said in a release. “For the time being, everything seems balanced. That said, if the US West Coast continues to be a release valve for a potential ILA strike supply chain disruption, there is a high risk that both West Coast Port and Rail operations could become overwhelmed.”
Global forklift sales have slumped in 2024, falling short of initial forecasts as a result of the struggling economy in Europe and the slow release of project funding in the U.S., a report from market analyst firm Interact Analysis says.
In response, the London-based firm has reduced its shipment forecast for the year to rise just 0.3%, although it still predicts consistent growth of around 4-5% out to 2034.
The “bleak” figures come as the European economy has stagnated during the second half of 2024, with two of the leading industry sectors for forklifts - automotive and logistics – struggling. In addition, order backlogs from the pandemic have now been absorbed, so order volumes for the global forklift market will be slightly lower than shipment volumes over the next few years, Interact Analysis said.
On a more positive note, 3 million forklifts are forecast to be shipped per year by 2031 as enterprises are forced to reduce their dependence on manual labor. Interact Analysis has observed that major forklift OEMs are continuing with their long-term expansion plans, while other manufacturers that are affected by demand fluctuations are much more cautious with spending on automation projects.
At the same time, the forklift market is seeing a fundamental shift in power sources, with demand for Li-ion battery-powered forklifts showing a growth rate of over 10% while internal combustion engine (ICE) demand shrank by 1% and lead-acid battery-powered forklift fell 7%.
And according to Interact Analysis, those trends will continue, with the report predicting that ICE annual market demand will shrink over 20% from 670,000 units in 2024 to a projected 500,000 units by 2034. And by 2034, Interact Analysis predicts 81% of fully electric forklifts will be powered by li-ion batteries.
The reasons driving that shift include a move in Europe to cleaner alternatives to comply with environmental policies, and a swing in the primary customer base for forklifts from manufacturing to logistics and warehousing, due to the rise of e-commerce. Electric forklift demand is also growing in emerging markets, but for different reasons—labor costs are creating a growing need for automation in factories, especially in China, India, and Eastern Europe. And since lithium-ion battery production is primarily based in Asia, the average cost of equipping forklifts with li-ion batteries is much lower than the rest of the world.
Retailers are under pressure from threats on two fronts heading into January as they frontload cargo imports in a bid to avoid the potential pain of a resumed East and Gulf coast dockworker strike and of broad tariffs being proposed by the incoming Trump administration, according to a report from the National Retail Federation (NRF) and Hackett Associates.
The report forecasts that the nation’s major container ports are expected to see a continued surge in imports through next spring, as importers rush to beat the impact of a container port strike as soon as January 15 and of tariff hikes as soon as January 20, researchers said.
“Either a strike or new tariffs would be a blow to the economy and retailers are doing what they can to avoid the impact of either for as long as they can,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release. “We hope that both can be avoided, but bringing in cargo early is a prudent step to mitigate the impact on our industry, consumers and the nation’s economy. We call on both parties at the ports to return to the table, get a deal done and avoid a strike. And we call on the incoming administration to use tariffs in a strategic manner rather than a broad-based approach impacting everyday consumer goods.”
By the numbers, U.S. ports covered by NRF and Hackett’s “Global Port Tracker” report handled 2.25 million twenty-foot equivalent units (TEUs) in October, although the Port of Miami has yet to report final data. That was down 1.2% from September but up 9.3% year over year.
Ports have not yet reported November’s numbers, but Global Port Tracker projected the month at 2.17 million TEU, up 14.4% year over year. December is forecast at 2.14 million TEU, up 14.3% year over year. That would bring 2024 to 25.6 million TEU, up 14.8% from 2023. In comparison, before the October strike and November’s elections, November had been forecast at 1.91 million TEU and December at 1.88 million TEU, while the total for 2024 was forecast at 24.9 million TEU.
The report provides data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.