GLOBAL TRANSPORT LOGISTICS

GLOBAL TRANSPORT LOGISTICS

1. Development in trade networks

One of the most obvious manifestations of logistics activities is the growth in freight transport

due to the worldwide expansion of trade. In particular, the globalisation of industry, including

planning, sourcing, manufacturing and marketing activities has resulted in more complex trading and

much more developed transport networks.

Development of trade networks has also been facilitated by major regulatory and technical trends.

Trade liberalisation, particularly within trading blocks such as the Asia-Pacific Economic Co-

operation (APEC), the European Union (EU) and the North American Free Trade Agreement

(NAFTA), has removed constraints on cross-border movement and has reduced related “barrier costs”.

Advances in telecommunications and information technology have given companies the means to

improve the efficiency of their businesses across widely dispersed geographic locations.

2. Trends in logistics

The development of trade networks creates various needs for value-added logistics management

and gives rise to a large number of individual trends in logistics and supply chains.

3. The characteristics of the labour market in the logistics industry

Logistics is emerging as a key economic activity and an important source of employment. Public

policies concerning working conditions and training have a direct impact on the volume and quality of

manpower and on the competitiveness of the transport and logistics service market. Human resource

development in support of the freight industry is considered both a public and a private sector

responsibility.

The existing labour force in the logistics sector is comprised mainly of older males, raising fears

that a structural labour shortage may occur.

There is already a shortage of skilled manpower in certain operational areas, particularly highly

skilled drivers in some countries, e.g. in the United States and Australia. In EU logistics, skill levels

and wages differ markedly across countries, particularly between Western European and Eastern

European countries. These shortages may be linked to inferior/difficult working conditions and/or

lower wage levels prevailing in the logistics sector compared to other industries.

4.Changes in the logistics industry

The introduction of new tools, methods and organisational forms is expected to change the

structure of logistics services production.

The logistics market is expected to become more active as a result of expanding business

activities. The development of Internet trade, third-party logistics and new businesses and services

catering to diverse needs will serve to enlarge the market. In particular, logistics and other customer-

focused distribution methods will become increasingly vital in the future.

Logistics offers an opportunity to “optimise” activities across the supply chain; outsourcing plays

a crucial role in this process. Increases in hired transport and logistics suppliers, as well as declines in

internal account activities, reflect the trend toward outsourcing and professional specialisation.

Reductions in the number of “support jobs” (i.e. not related to primary activities) contribute to

increased productivity and price decreases.

The more supply chains are divided among numerous service providers, subcontractors, local or

global organisers, the more co-ordination they require. Specialised services focus on specific assets

and know-how, which need to be inserted into a coherent framework, providing a complete integrated

complex service. Closer links between partners induce stronger rigour in organisation, and diffuse an

industrial type of organisation — including strict “just in time” practices — into a previously more

artisan-like type of industry.

Therefore, instead of a traditional taxonomy, relying on techniques and industrial specialities, the

alternative approach distinguishes operational logistics activities from mainly organisational ones,

consisting of developing, selling, and controlling the operational logistics activities. The interface

dimension of these activities, highly dependent on information technology, is crucial.

5. Policy recommendations

- Need co-operation between countries, especially to assist developing countries

Developing human resources through training and education is important to both the public and

the private sectors. Co-operation between countries by establishing a database covering various

aspects of logistics systems in a region (e.g. statistics, public policies, best practices, etc), and having

periodic seminars to exchange experience and new ideas would benefit this.

The lack of logistics knowledge and policies in many developing countries could lead to

bottlenecks in economic development. Developed countries need to facilitate human resources training

in developing countries by dispatching their logistics experts to establish and develop logistics training

courses in these countries. Dispatching experts will not only benefit these countries by developing

human resources but also promote the provision of important logistics facilities that could play a

crucial role in the harmonisation of intermodal operations.

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