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Government Initiatives and Investments in Automation will Shape the Future of Logistics
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Robust private consumption, resilient external demand, and an accommodative monetary policy are expected to support Denmark's economic growth in 2017 and 2018. The country has a highly service-oriented economy, with industry contributing only 20% to the GDP. Bulk goods dominate volumes for road freight, with construction being the largest contributor. On the other hand, agricultural goods and consumables account for more than 24% of transit goods. Almost 55% of all road traffic in Denmark is contributed by transit goods. Pharma logistics is one of the most attractive segments, and sophisticated cold chain networks, temperature monitoring, and track-and-trace technologies are gaining traction.Denmark has become the 1st country in the world to rely on GPS probe data to monitor traffic and congestion on a national scale. Initiatives in terms of autonomous trucks and strong investments in automation have placed Denmark among the leading nations for innovation. Denmark is a highly environment-conscious country with ambitious emission targets. This paves the way for a number of technologies - from LNG ships to autonomous vehicles and e-Vans. With Maersk taking on the role of a logistics orchestrator, the increasing popularity of 4PLs is anticipated. A number of retailers with growing online sales are developing their own e-Fulfilment centers due to the lack of reliable and efficient service providers. Most large online companies, such as Amazon, will focus on the development of their own fulfilment centers and gradually expand into taking care of their own supply chain management. However, due to a boom in e-Commerce growth, a significant number of companies will opt to outsource their supply chain to 3PL service providers.
The aim of this insight is to research and analyze the key developments and trends related to economy and trade and the freight and transportation and logistics and warehousing sectors in Denmark.
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