Logistics is an integral part of the cost of any goods, so the increase in prices for all types of delivery directly affects the rise in the cost of finished products, whether it be clothing, spare parts or food. In addition to raising prices, the producers of the latter also resort to reducing the volume or weight of the final product, sometimes up to 10%.

The logistics market is constantly transforming, digitising and growing. The consumer model is changing dramatically - door-to-door delivery of groceries and essential goods is becoming more popular. Therefore, the demand for couriers and optimisation of retail logistics infrastructure is growing. After all, warehouse facilities are needed for fast delivery and dark stores within walking distance from the buyer - for hyperlocal delivery. Both of these are now a tricky but feasible task that requires significant resources. Modern digital logistics solutions make it possible to increase the efficiency of a courier, that is, to fulfil more orders in a certain period of time.

The cost of logistics for 2021 has increased; at the same time, delivery times have increased for a number of reasons. As a result, in mid-February 2022, logistics companies did not see an opportunity to reduce delivery times and concentrated on somehow stabilizing its cost.

In general, the demand for cargo transportation by road is increasing. It is due to the growth in demand for goods and problems in the industry. Due to limited production capacity, rising prices for raw materials and materials, the lack of slightly used equipment not older than three years, disruption of supply chains, and a shortage of vehicles has formed. All this makes meeting the increased demand for cargo delivery less efficient.

At the moment, the market's growing needs are mainly covered by the current rolling stock of carriers. And the lack of vehicles leads to an increase in delivery time and the transportation cost further along the chain.

In the current situation, the market will continue to reorient foreign trade towards China and the countries of Southeast Asia. If not reduced, this will stabilise the growth in the cost of cross-border delivery by increasing the volume of goods flow.

It is possible to reduce the cost of logistics for e-commerce by consolidating market participants. After all, if the transport operator carries cargo more often and in large volumes, it will reduce its costs, affecting the cost of the goods.

Now every retailer must take the most careful approach to the issue of supply planning. Due to the situation, each shipment must be calculated in several ways, considering the cost and timing of shipment.

Gateway Global provides services for transporting goods in the CIS, carried out by road and rail. The main cargoes transported are building materials, wheat and flour, sunflower oil and meal. We have everything to provide a high-quality service: our own vehicle fleet, skilled drivers, loaders, well-established customs processes, and reliable partners. Our comprehensive logistics service allows the customers to forego the maintenance of a warehouse, reduce associated costs, and speed up the turnover.

For more information, please contact us info@ggm.sg