Global freight transport activity to grow 2.5pc yearly

Freight transport activity will grow at an average annual rate of 2.5 per cent per year worldwide, said a top company official at a transport and logistics event held in Dubai.

Bernd Herrmann, strategic accountant manager Mobility, Siemens, was commenting on freight transport demand at the first edition of the International Week of Transport&Logistics which featured an exclusive Global Shippers’ Conference.

The GSF Conference sparked discussions on how to tackle the challenges that the shipping industry is facing globally.

“Freight transport demand is growing while uncertainty and unreliability are increasing due to congestion. Looking ahead toward 2030, freight transport activity will grow at an average annual rate of 2.5 per cent per year worldwide and the regional growth is ranging from 3.7 per cent in China and 1.9 per cent in OECD,” stated Bernd Herrmann.

“We estimate that demand for freight transport by road will sharply increase between now and 2030, ranging from 65 per cent in Europe to 600 per cent in China. Uncertainty and unreliability in the performance of the inter-urban highway network causes inefficiencies in just-in-time transport. On-demand supply chains lead to increasing dependence of retailers and manufacturers on just-in-time delivery.”

The speaker also highlighted the fact that passenger transport is increasing by 50 per cent as existing networks are reaching their capacity limits. In order for industry players to cope with transport demand and on the flip side environmental challenges, all transport modes will have to operate in concert. The reason why, complete mobility for 2030 should maximize the effective capacity of the overall transport system, accommodate growing demand, reduce transport’s ecological footprint and time loss as well as facilitate sustainable economic growth, he explained.-