Labour and wages
The pandemic has severely impacted the cost and availability of crews to support shipping and transport companies. These labour shortages, coupled with the competing wage demands of other sectors, have put additional pressure on global supply chains and delayed the international movement of goods.
Rising fuel prices, labour shortages, and global container supply issues are just some of the factors fuelling escalating costs in the transport and logistics sector. Shipping costs have reportedly increased by as much as 300%-400% over pre-pandemic levels, particularly in Australia where shipping options have diminished.
Road and rail
The flow-on effects from global shipping delays have exacerbated the challenges that road and rail transport providers face in meeting strong demand. And while there is considerable investment into building road and rail capacity, particularly in Australia, this change needs time to take affect. Natural disasters and strong commodity prices also continue to put further pressure on road and rail transport providers.
Technology presents both a challenge and opportunity, and competitiveness in coming years will be determined by the ability to harness technology to drive efficiency and ensure low-cost operations. Strong digital platforms and the use of automation and artificial intelligence have already started to permeate the sector and differentiate some providers, particularly in warehousing.
Many operators are in search of cost effective options to electrify their fleet or to convert their fuel source from diesel to hydrogen, with FMG and Anglo American currently leading this charge. OEM prime mover manufacturers are also under pressure to bring out the next generation of electric vehicles to support this sector, while leading tech companies are driving prime mover conversions.
Finding the right transport and logistics talent
We bring deep transport and logistics sector knowledge and many longstanding industry relationships, to support your executive search. Our international reach and highly focused and rigorous search methodology also allow us to source the very best available talent, locally and internationally, for any technical or leadership roles.