Location forecast: these trends will move logistics forward in 2024

It's an industry of tight margins that has been hit by various headwinds in the past few years. But fleet management is also going through a process of transition and transformation, using technology to drive efficiency and becoming more sustainable in the process. HERE360 looks at some of the changes that will define the industry in 2024 and beyond.

Driving change

A driver shortage in many regions has caused issues for fleets. But tools that promise to make their lives easier could change this. From smarter routing that reduces overtime to productivity tools that work with drivers to make their jobs easier, the focus will be on the person behind the wheel as we move into 2024.

Fleet productivity tools, including dash cams or tracking devices, may appear likely to annoy drivers, but if deployed correctly they can be a benefit. For example, routing that optimizes operations so that drivers are not left waiting around so they can complete their trips on time will make their lives easier.

The good news is that a trend toward electrification could make drivers happier. A recent survey showed that the majority of van drivers believe that business productivity will improve once their fleet goes electric and feel positive about it. Reduced maintenance time and the likelihood of employers reimbursing them for electricity are part of the appeal.

E-cargo bikes: coming to America

Amazon, DHL, and UPS are using e-cargo bikes in several European cities, but American cities haven't followed suit — yet. Pilot projects have already started, but 2024 could be the year that they go mainstream. More efficient, faster and safer than vans, these vehicles can improve city life but the help of governments through incentives might be the push that's needed to make it happen.

The National Transportation Safety Board has pointed out that large trucks are responsible for 32% of bicycle fatalities although they only make up 3.6% of vehicles in New York City. However, a study showed that more than half of motorized trips in urban areas could be shifted to bicycles or cargo bikes. The potential is there — this might be the year that change finally happens.

EV does it

In a recent survey of fleet managers, almost half (44%) said their fleet vehicles are already electric and two-thirds (66%) of companies have grown the number of electric vehicles (EVs) they operate in the past year, by an average of 19%, according to respondents to a Lex Autolease survey.

With regulation on the horizon, many large transportation and logistics companies and a lot of smaller ones will be making the transition to electric fleets this year. With low-emission zones becoming the norm in European cities, many fleets will have to switch sooner rather than later. 

In other regions, the picture is similar. For instance, in India, Amazon India is partnering with Eicher Motors and Buses to further electrify its eCommerce logistics in the country. The target is to deploy 1,000 electric trucks over the next five years for its delivery operations.

Having the right tools to calculate costs versus savings and understand how these vehicles will need to be charged is crucial to the transition's success.