The report below gives a good overview of the Spring 2023 M&A activity in the Transport, Logistics and Supply Chain Industry Sector. The transportation industry witnessed a surge in freight rates due to supply chain constraints and inflation in the past two years. The impact of inflation has not yet completely subsided. The spot market instability brought on by the pandemic and inferior routing guides hinder prices from reverting to their pre-pandemic levels. Global trade volumes are at an all-time low due to recessionary fears, driving freight prices to reach historic highs. Excess capacity issues have diminished, but lane-level instability is severe and becoming worse. Companies are experimenting with various solutions, such as digital freight and dynamic pricing management, to mitigate the overall impact of higher freight prices. These technologies are likely to be used by businesses to monitor market fluctuations in real-time and manage their transportation budgets. It is expected that a decline in truck demand and the effects of the Ukraine war wearing off on diesel prices is expected to lower freight prices. The adoption of automation and AI along with reduced port congestion is also likely to bring long-term stability to freight prices.
Posted by Peter Heydenrych.
Read the Entire Spring 2023 Transport, Logistics and Supply Chain Report Here