Transportation and warehousing logistics in Russia: key trends for 2024
Focus on import substitution and domestic freight transportation, reorientation to the East, digitalization and automation are among the key trends in Russian logistics.
Every year, the transportation and logistics industry undergoes significant changes. The reason for this lies not only in geopolitics and global challenges, but also in the rapid development of technology. To remain competitive, logistics companies are adapting to new conditions and using new tools.
In this article, let's look at four key trends that will shape the development of transportation and warehousing logistics in Russia in 2024.
1. Automation, digitalization and robotization of processes
Digitalization is central to logistics. Every year Russian companies are more and more actively introducing digital tools into their logistics processes:
- warehouse management systems (WMS),
- Internet of Things (IoT),
- Electronic Document Management (EDM).
Warehouse management systems (WMS) integrated with ERP systems allow for more efficient resource planning. IoT sensors help transportation and logistics companies develop optimal routes, taking into account fuel consumption and traffic. In warehouses, IoT helps control the movement of goods, combat losses and theft, and manage inventories efficiently.
Electronic document management (EDI) is also becoming widespread, replacing paper documents and speeding up delivery processes. According to the Transport Strategy of the Russian Federation until 2030 with a forecast for the period until 2035, it is planned that by 2035 the share of transportation documents executed electronically will reach 100%.
Advanced companies are already using robots in their processes - for example, autonomous mobile robots (AMR), which perform heavy and routine work. They help reduce accident risks and increase productivity.
2. Artificial intelligence and machine learning
Artificial intelligence, like digitalization, is permeating all aspects of logistics. It is already being used extensively by advanced companies to optimize spot bidding, select and book shipments, and fight fraud. Automated AI-based tools will help carriers find the most profitable routes, monitor the technical condition of vehicles and prevent fuel theft.
Machine learning (ML) is not limited to analyzing big data and demand forecasting. ML-based smart satellite tracking is used to monitor transportation, track the movement of cargo and condition of goods, thereby increasing the efficiency of logistics processes.
3. Import substitution and development of domestic logistics
Amid geopolitical instability and sanctions, Russian companies are increasing their focus on domestic freight transportation and import substitution. The volume of domestic transportation of prefabricated cargo is growing, supported by the development of marketplaces and e-commerce. For example, in January-September 2023, the volume of prefabricated cargoes increased by 22%, and in January-April this year, the volume of container transportation through the Russian Railways network increased by 9.7% year-on-year. In addition, Russian industry also requires prompt deliveries - industrial production growth for 2023 amounted to 3.5%.
In parallel with domestic freight transportation, import substitution is becoming an important aspect of logistics. A number of Russian software developers offer their products for warehouse management, transportation and routing. The variety of domestic analogs helps Russian companies reduce dependence on foreign solutions and ensure data security.
4. Reorientation to the East and infrastructure development
Changes in the foreign policy and economic situation have already led to a reorientation of trade flows from west to east. Last year, according to Delovye Liniya Group of Companies, the demand for delivery from China increased by more than 40%, and Turkey is not lagging behind - the number of container shipments of groupage and general cargo has more than doubled. The development of checkpoints at the state border contributes to the increase in cargo transportation volumes; in 2024, 8.3 billion rubles will be allocated for this task.
The importance of investments in infrastructure development is obvious. The construction of new terminals and improvement of existing facilities help to increase transportation potential and the efficiency of logistics processes. An important step is the agreement between Russian Railways Business Asset and Alfa-Bank on a credit line for the construction of a rail terminal in Zabaikalsk, which will make a significant contribution to improving infrastructure and increasing cargo turnover.
TransRussia | SkladTech - the main exhibition of transportation and logistics services, warehouse equipment and technologies
For 28 years TransRussia has been the largest logistics exhibition in Russia and the CIS. A special exposition of warehouse equipment and technologies SkladTech is held on the same platform. TransRussia | SkladTech 2024 was attended by 583 companies, and their offer was viewed by 30,217 industry specialists. Of these, 15,837 visited the exhibition for the first time.
The effectiveness of the exhibition for business is confirmed by the results of a survey of exhibitors:
- 97% are satisfied with participation in the exhibition,
- 82% found new clients and partners,
- 74% got more than 100 contacts in 3 days.