Japan Container Logistics

Challenges of the Logistics Industry

Logistics companies have tried to solve issues in their operations, but it seems that there are no quick fixes. Usually, the fixes they have to do are involuntary which will cost them millions of dollars. Logistics industry needs to make a radical yet effective solution to these challenges to lessen the loses, reduce pollution, and improve the overall logistics services for the people.


Fuel Consumption

A single fleet will need tons of fuel just to do their day-to-day operations. Fuel reduction has been a major challenge since 1991. The more cargo they have to carry, the more fuel they have to consume. Logistics companies spend millions of dollars every month just for fuel. Let us also not forget the negative side effects it causes to our ocean. A lot of movement against logistics went to buy website traffic to spread awareness to the public regarding the ocean condition due to logistics companies operating in bodies of water. But what they do not understand is, these companies cannot make the 360-degree shift right away. Companies are trying to build ships that consume solar energy as a fuel replacement; however, the prototype is not fully developed due to some conflicting issues.

Accurate Tracking and Loss Prevention

Millions of cargos are being transported from point A to B, loses are happening every day as well. Despite the advancement of technology that may help cure this problem, logistics companies are still trying to keep up. There has been a massive improvement in this area; however, logistics is a vast industry. It has to deal with different countries delivery systems and their procedures. So far, they have used market research and resolved many of these issues. Losses were greatly reduced compared five years ago. But logistics has a room for improvement to develop a strategy to minimize the losses to 3% daily.


Government Regulations

The constant changes in the government regulations per country give challenges to logistics companies to come up with strategies to minimize the cost of their operations. One example is in the area of labour regulations. Logistics companies find it difficult to allocate budget for their expenses in manpower which affects their long term planning for innovation costs.