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Home » Blogs » Think Tank » The State of Shipping and Logistics in 2025 and Beyond

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The State of Shipping and Logistics in 2025 and Beyond

A white truck pulling a red shipping container, with a large black ship stacked with shipping containers that sits below two blue shipping cranes

Photo: iStock / Tryaging

December 20, 2024
Darren Lavelle, SCB Contributor

Following are some trends in shipping and logistics that we’re projecting for 2025.

Technology. Artificial intelligence will initiate an incremental transformation of logistics operations, beginning with foundational changes. Third-party logistics providers must first focus on data standardization and basic process automation, while developing roadmaps for more advanced technologies. Initial efforts will concentrate on auditing existing workflows and implementing robotic process automation for routine tasks.

While full digital twin implementation remains years away, logistics companies will begin laying the groundwork through enhanced data collection and system integration. Organizations will start by creating detailed digital models of specific facilities, gathering insights needed for future network-wide virtual replicas.

Basic automation will expand through proven technologies like autonomous mobile robots and automated storage systems, controlled through traditional programming. This intermediate step will help organizations understand human-machine interaction patterns while more advanced control systems mature.

As automation increases, workforce evolution will begin through targeted training programs. Employees will start transitioning from manual tasks to operational oversight roles, receiving training in data analysis and automation management. This shift will occur gradually to maintain operational stability.

Supply chain integration will progress through focused application programming interface (API) implementation between major partners, starting with core functions like real-time tracking and order management. Organizations will prioritize standardizing data formats and establishing secure connections with key stakeholders, creating proof-of-concept projects that demonstrate the value of deeper digital integration.

Finally, demand forecasting has always been a struggle for brands. With advances in AI and machine learning, demand-forecasting accuracy will be increased. By analyzing large datasets, including historical data, consumer behavior, and external factors such as weather, AI will provide brands with more efficient inventory management, reducing overstock or stockouts while steadily keeping up with consumer demand.

Sustainability. Amazon eliminated the unboxing “joy” with its plain brown boxes and plastic air padding. Therefore, packaging will be increasingly more “form follows function” than a tool of customer delight. More brands will be embracing plain packaging as well as a security measure against “porch pirates.” This will be further reinforced by brands’ priority to demonstrate sustainability, as they replace boxes with mailers.

Warehouses, too, will increase their focus on sustainability and going green, installing solar panels, investing in electric vehicles, finding secondary markets for their own packaging waste, and reducing water and energy usage within their facilities.

In addition, brands will embrace recycling. Municipalities often frown on used lipstick tubes in their recycling stream. Therefore, beauty brands and other companies with specialized packaging will work directly with retailers to create designated recycling centers – generating more walk-in traffic for the retailer, and reinforcing brand PR as a sustainability-focused organization. 

Logistics. The rise of micro-fulfillment centers within retail networks will reshape logistics relationships in the coming year, creating both challenges and opportunities for traditional 3PLs. As major retailers invest in urban micro-fulfillment centers, traditional distribution patterns will evolve, requiring 3PLs to adapt their service offerings and network strategies to complement these emerging fulfillment nodes.

Success in this changing landscape will depend on developing efficient interfaces between traditional distribution centers and retailer-operated micro-fulfillment networks. Leading 3PLs will enhance their warehouse management systems and transportation software applications to provide seamless inventory flow to these smaller facilities, focusing on precision in delivery windows and enhanced data visibility.

While retailers drive the micro-fulfillment trend through direct investment and operation, 3PLs will strengthen their core competencies in regional distribution and transportation optimization. The focus will remain on providing reliable, cost-effective services that support the broader supply chain, including precise inventory allocation and efficient replenishment to micro-fulfillment locations.

The emergence of micro-fulfillment networks will accelerate the need for advanced integration capabilities and real-time visibility solutions. 3PLs will prioritize technology investments that enable dynamic inventory tracking and seamless data exchange with retail partners, ensuring efficient coordination between traditional distribution centers and these new urban facilities.

Risk management. In 2025, risk management will evolve from reactive contingency planning to proactive, data-driven resilience strategies. 3PLs will begin implementing more sophisticated risk assessment tools that combine real-time weather data, port congestion metrics and carrier performance analytics, to anticipate potential disruptions before they impact operations.

The focus will shift toward developing practical, tested business continuity plans rather than theoretical frameworks. Organizations will conduct regular simulation exercises for common disruption scenarios, ensuring that backup distribution networks and alternative routing options are truly viable. This will include establishing relationships with secondary carriers and warehousing partners in key markets.

Initial steps toward supplier diversity will focus on critical operational needs, starting with packaging supplies and material-handling equipment. While complete redundancy remains cost-prohibitive, 3PLs will prioritize identifying and qualifying backup suppliers for essential services and materials that directly impact operational continuity.

Weather impact modeling will become more precise and actionable, with organizations beginning to integrate regional climate data into their seasonal planning. This will include adjusting labor schedules, modifying routing strategies, and adapting facility operations based on predicted weather patterns. While full predictive capabilities are still developing, these early efforts will help organizations better prepare for and respond to weather-related disruptions.

Many of these trends have already begun, but they’re picking up speed. Much will come down to rapidity of adaptation and adoption, both practice and tech-wise. As the year progresses, it will be interesting to look back and see where AI and brand loyalty have taken the market.

Darren Lavelle is chief experience officer at Capacity LLC.

Logistics Technology Logistics Outsourcing Artificial Intelligence Supply Chain Security & Risk Mgmt Sustainability & Corporate Social Responsibility

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