Logistics 2025 Annual Review & Outlook
Executive Commentary
those optimization processes horizontally to all upstream and downstream trading partners . If node 1 has cargo movement information that is valuable to node 2 , early visibility of node 1 ’ s cargo data will help node 2 create and execute the best operations plan . The earlier we can provide visibility of vital information to the next node , the better it can prepare . That ’ s what predictability means in 2025 .
Visibility and predictability complement execution to drive more effective throughput across the entire supply chain . In port communities where visibility and predictability are prioritized , cargo movement information flows freely between shippers and terminals ’ purpose-built execution software , enabling both parties to execute their operations more productively . This results in a triple win : each node , the overall supply chain and the consumer all experience the benefits . Execution , visibility and predictability working in tandem can drive powerful performance improvements for the global supply chain . Uniting these priorities harmoniously will be a focus in 2025 and beyond .
Magaya
Martyn Verhaegen
Chief Technology Officer www . magaya . com
The container shipping industry , with all its requisite documents and processes , produces massive amounts of data . AI can be tremendously helpful in digitizing the data on the front end and , later , generating predictive insights that fuel continuous improvement and better decision-making .
Getting unstructured data from various sources , such as shipping documents , into a structured , normalized database is an important step that is particularly time consuming and can be prone to errors . AI dramatically accelerates this process . Recent advances in large language models and computer vision make AI interpretation of unstructured data more reliable
“ While automation is essential for modern companies , finding the right balance between automation and standardization is crucial .”
Markus Johannsen
“ Index-linked contracts remove the relationship strain and reduce the administrative burden .”
Gordon Downes
“ Predictive intelligence is largely focused on managing shipping delays and exceptions , but there are virtually no limitations to the types of demands , events and outcomes we could predict .”
Martyn Verhaegen
Kuehne + Nagel ( K + N )
Markus Johannsen
Global Head of Sea Logistics Technology and Business Intelligence www . kuehne-nagel . com
Artificial intelligence is particularly well-suited to enhance several key functions in container shipping , including maximizing utilization , optimizing route planning , managing capacity , predicting milestones and improving data completion and quality . These areas represent just a few of the most promising applications of AI in the industry .
Almost all forwarding activities in logistics can be automated with the right technology . The key is to decide which areas to focus on for automation . However , while automation is essential for modern companies , finding the right balance between automation and standardization is crucial . This helps to create a competitive edge and ensures customer excellence .
and economically viable than ever . Documents can be digitized by engineering a simple prompt describing the input and desired output . For example , “ use this commercial invoice to create my Customs entry and Importer Security Filing .” The AI parses data from an unstructured PDF and even assigns harmonized tariff schedule codes correctly , shaving several minutes off each entry .
Another example of AI data input is in the warehouse , where automated dimensioning technology can take highly accurate measurements of cargo in seconds , and optical character recognition can be used to grab data from shipping labels .
In both examples , rather than eliminating the need for human involvement , AI enhances it . Workers can now focus on higher-level tasks such as prompt engineering and quality control instead of manual data entry .
Taking things to the next level , once all that raw data is digitized , machine learning models can also be used to make predictions about the future . Today , predictive intelligence is largely focused on managing shipping delays and exceptions , but there are virtually no limitations to the types of demands , events and outcomes we could predict . AI can help us uncover more efficient , cost-effective , greener and safer ways of moving containers around the world . The possibilities are exciting .
New York Shipping Exchange ( NYSHEX )
Gordon Downes
CEO www . nyshex . com
Thinking back to this time last year , most industry experts were anticipating a “ normalized ” 2024 freight market . However , 2024 has been anything but normal for reasons we all know too well . Consequently , spot rates were much higher than most contract rates that were signed early in 2024 , resulting in many contracts having to be adjusted upwards through peak season surcharges and other means .
Adjusting contract rates when the spot market shifts is an arduous process , taking significant time from everyone involved , and also putting major strain on relationships . Fortunately , some of the leading carriers , shippers and non-vessel-operating common carriers ( NVOs ) are coming up with innovative new solutions , such as index-linked contracts . In fact , as of mid-2024 approximately 45 % of the contracts on NYSHEX were index linked .
Index-linked contracts remove
96 Journal of Commerce | January 6 , 2025 www . joc . com