Geopolitical uncertainty to upset the road transport sector
In the face of geopolitical and economic uncertainty, technology-driven innovation will be key to meeting the challenges of tomorrow in the road transport sector, according to a survey published today by IRU. This topic will top the agenda of the IRU World Congress, a new global event for transport, logistics and mobility which is opening this week in Muscat, Oman.
The global snapshot survey is based on interview data from 450 transport companies across Europe, the GCC and Asia, and reveals the following headline findings:
-) Majority of transport companies in Europe, Asia and the Gulf Cooperation Council (GCC) countries (57%) view geopolitical uncertainty as the biggest threat to their development.
-) Technology and innovation key to overcoming challenges and securing the future of the industry – over three quarters (76%) of transport companies surveyed expect autonomous trucks to become a viable option on the roads within the next decade.
Findings reveal that transport companies are concerned about macro global issues. Over half (57%) see geopolitical uncertainty as the biggest threat facing the sector – from escalating international trade wars to growing concerns around Brexit. The risk of global recession and the challenge of keeping up with changing customer demand are jointly seen as the second biggest threats to transport companies at 52%.
Umberto de Pretto, IRU’s Secretary General, commented: “The global transport system touches the lives of each of the planet’s seven billion people, from the food we eat to the consumer goods we buy. So it’s perhaps not surprising that many of the issues facing society today are also considered by transport companies to be their biggest challenges. These include some of the main themes that dominate the international agenda, including geopolitics, trade and the environment.”
Barriers to adopting technology persist – with transport companies citing the major challenges to adopting technology driven innovation as cost and investment (71%), followed by a limited understanding of the range of emerging technologies available (50%).
This suggests that pockets of the industry have yet to embrace new technologies and processes, and that there is still work to do to fix the digital foundations of the industry before technology-driven innovation can be optimised properly. At the opening of its World Congress in Oman, IRU urges the industry to fix the digital foundations of transport in order to fully benefit from automation and other innovations.
IRU is the world road transport organisation, promoting economic growth, prosperity and safety through the sustainable mobility of people and goods. Founded in 1948, IRU has members and activities in more than 100 countries. IRU conceived TIR in 1949 and continues to manage the system.