7 Key Logistics Trends Shaping the Industry in 2022

Introduction

As we navigate through 2022, the logistics industry continues to evolve rapidly, presenting both challenges and opportunities for businesses worldwide. At FreightAmigo, we’re committed to helping our clients stay ahead of the curve by providing insights into the latest logistics trends. In this comprehensive analysis, we’ll explore seven key trends that are shaping the industry this year and how they impact your business operations.

1. Rising Shipping Costs

One of the most significant trends we’re observing in 2022 is the continued increase in shipping costs. This uptick is primarily attributed to:

• Tighter COVID-19 restrictions in major logistics hubs like Hong Kong and China
• Charges levied on delayed cargo, containers, vessels, and aircraft
• Personnel shortages at ports and cross-border points of entry

As a result, businesses are increasingly seeking affordable shipping options from both domestic and international couriers. At FreightAmigo, we understand the importance of cost-effective shipping solutions and offer our clients access to competitive rates from a wide range of carriers.

Popular Courier Services

Our data indicates that USPS, UPS, and DHL remain the most popular courier services in the United States. Each of these carriers offers unique benefits:

• USPS: Known for affordable and reliable options like First Class and Priority Mail
• UPS: Offers a balance of speed and reliability
• DHL: Provides excellent international shipping solutions

To help our clients navigate these options, FreightAmigo’s Digital Platform allows you to compare rates and services from multiple carriers, ensuring you find the most cost-effective solution for your specific needs.

2. Normalizing Delivery Times

Despite the challenges faced in recent years, we’re seeing a positive trend in delivery lead times (DLT). In 2022, DLTs are expected to normalize, approaching pre-pandemic levels. This improvement can be attributed to:

• Increased shipping capacity
• Gradual easing of supply chain disruptions
• Adaptation of logistics providers to the new normal

Our data suggests that domestic deliveries in the U.S. are now averaging around 2.6 days, with predictions indicating further improvements to come. For international shipments, we’re also seeing steady progress in reducing delivery times.

Strategies for Reliable Deliveries

To ensure reliable deliveries and meet customer expectations, we recommend the following best practices:

• Communicate clear shipping policies to avoid surprises
• Offer comprehensive package tracking
• Consider premium express shipping for time-sensitive deliveries
• Provide shipping insurance, especially for high-value items

FreightAmigo’s Digital Logistics Platform incorporates these features, allowing you to offer a superior shipping experience to your customers.

3. Enhanced Post-Purchase Experience

In 2022, customers are expecting an elevated post-purchase experience. This trend is crucial, as 58% of consumers report they won’t make future purchases from a company after a poor post-purchase experience. Key elements of an enhanced post-purchase experience include:

• Personalized delivery experiences
• Worldwide tracking capabilities
• 24/7 customer support
• Premium shipping insurance

At FreightAmigo, we offer a comprehensive suite of tools to help you deliver an exceptional post-purchase experience, including advanced tracking systems and robust customer support options.

4. Borderless Commerce

Cross-border commerce is opening new avenues for success in the eCommerce space. Our data shows that the top three countries for eCommerce buyers are:

• The United States
• Australia
• Canada

Interestingly, 96% of global eCommerce buyers are concentrated in the top ten eCommerce marketplaces. This information is crucial for businesses looking to expand their international presence.

Growth in Delivery Duty Paid (DDP) Shipments

We’ve observed a significant increase in DDP shipments, rising by nearly 150% in the past year. This trend indicates that more merchants are taking responsibility for all shipping costs and duties, creating a smoother experience for international customers. FreightAmigo’s Digital Logistics Solution provides dynamic live rates that include estimated duties and taxes, improving transparency for both merchants and customers.

5. Increasing Order Volumes

Despite the challenges posed by the global pandemic, we’ve seen a 50% increase in average order volume per merchant in 2021. This growth underscores the resilience of eCommerce and the opportunities available for businesses that can effectively manage their logistics.

6. Emergence of New Markets

While the United States remains the global leader in consumer spending across all product categories, we’re seeing interesting trends in other markets:

• Australia: Growing demand for health & beauty products, electronics, and jewelry
• Canada: Strong market for fashion, health & beauty, and sports & leisure items
• Singapore: Increasing interest in sports & leisure, toys, and jewelry
• United Kingdom: Fashion, health & beauty, and electronics leading the way
• Brazil: Emerging market for electronics, sports & leisure, and toys

Understanding these market trends can help businesses tailor their product offerings and expansion strategies.

7. Growing Support for Small and Medium-Sized Businesses

In 2021, we observed a significant trend of buyers showing increased support for local and small businesses. U.S. buyers grew by 41% within the last year, indicating a shift towards supporting smaller enterprises. This trend is expected to continue in 2022, presenting opportunities for SMBs to gain market share.

Conclusion: Navigating Logistics Trends with FreightAmigo

As we’ve seen, the logistics landscape in 2022 is characterized by rising costs, normalizing delivery times, enhanced customer expectations, and the growth of cross-border commerce. For businesses looking to thrive in this environment, it’s crucial to have a reliable logistics partner.

FreightAmigo’s Digital Logistics Platform is designed to help you navigate these trends effectively. Our comprehensive suite of tools allows you to:

• Compare rates from multiple carriers to find the most cost-effective shipping options
• Provide real-time tracking and enhanced post-purchase experiences for your customers
• Simplify cross-border shipping with features like DDP and duty estimation
• Scale your operations to meet increasing order volumes
• Expand into new markets with our global shipping capabilities

By leveraging FreightAmigo’s Digital Logistics Solution, you can turn these logistics trends into opportunities for growth and success. We’re committed to helping businesses of all sizes optimize their supply chain and deliver exceptional experiences to their customers.

Stay ahead of the curve in 2022 and beyond with FreightAmigo. Contact us today to learn how we can help you transform your logistics operations and drive your business forward in this dynamic landscape.