Tuesday 25th Oct 2016 - Logistics Manager

Energy prices to drive change in transport industry

Climate change, rising energy costs and increasing local sourcing are current and future challenges for the transport and logistics industry, according to a report by PricewaterhouseCoopers.

More than half of the respondents to PwC’s survey of 48 transport and logistics executives predict that alternative energy will account for up to 80 per cent of their overall energy mix in some countries in the future.

The majority of respondents see the reduction of carbon dioxide emissions and other emissions, such as nitrogen oxide and noise, as an enduring target for both the short and long-term future.

Nearly 70 per cent of respondents expect that by 2030 all emissions will be tracked in the supply chain and factored into the price of the product.

Klaus-Dieter Ruske, partner, and transport and logistics leader at PricewaterhouseCoopers, said: “Energy prices, climate change and regional sourcing will drive a fundamental shift in the transport and logistics sectors by 2030.

“Transport and logistics companies – from express mail services to airlines – will face more than just technical problems through tracking, evaluating and documenting all emissions in their supply chain. However, when they do these emissions will be factored into the price of products.

“Increased awareness of consumers about sustainability will change consumer behaviour and in turn, global supply chains.”

Nearly six in ten respondents believe that their home and work environments, will become more integrated, with travel distances diminished, while more than 45 per cent of respondents expect a reduction in individual mobility compared to today.

Although 60 per cent of those surveyed think that consumers will prefer locally produced products by 2030, respondents do not believe there will be a reverse of globalisation by 2030. Even so, 59 per cent think that transport costs will be the predominant factor in the location of production sites.

It was also discovered that more flexible and efficient use of transport modes will emerge.

The majority of respondents anticipate that autonomous and self-controlled systems such as agent systems and automatic guided vehicles will revolutionise freight transport.

Some 60 per cent consider that a concentration of transport capacity, through the use of LKW transporting more than 60-tonne mega trucks or ultra-large container ships, will counter increasing costs.

Half of respondents believe that the share of road transport in total freight transport will further increase.