Logistics

Future of logistics reliant on cooperation and digitalisation

18 March 2025
Platform economy, startup environment and upcoming Fehmarnbelt tunnel - a look at Hamburg as a logistics centre

Logistics does well when the economy is purring. However, a 0.2% decline in German economic output in 2024 also led to a drop in logistics-related companies' orders for the second year in a row. This came after GDP dropped by 0.3% in 2023. The German Logistics Association (BVL) reported in its Logistics Indicator January 2025: "Members are even more worried about the coming six months than they were at the end of last year." Professor Hanno Friedrich, Associate Professor of Freight Transportation, Modelling and Policy at Kühne Logistics University  (KLU) also confirmed this cyclical decline in in 2024, but noted: "The long-term forecasts are far more positive". In fact, the Hamburg-based Statista has forecast a market volume of more than USD 14.08 trillion by 2028. But how can this optimistic estimate be achieved?

Information and best practices

"There is clearly room for improvement in the professionalisation of logistics," said Friedrich and stressed the need for cooperation. "There are many advantages to organising and working in networks e.g., to optimise the use of capacities." This is particularly true for supply chain management, he added. SMEs in particular are still using  individual procedures and systems, which makes coordination and transparency difficult. "Efficiency and sustainability can be improved by sharing information and best practices. By tracking information throughout the supply chain, we can pinpoint sustainability issues and address them."

Professor Hanno Friedrich, Associate Professor of Freight Transportation, Modelling and Policy at Kühne Logistics University
Professor Hanno Friedrich, Associate Professor at Kühne Logistics University

Using data-driven transparency

Friedrich, whose research focuses on transport, demand modelling and risk management in transport and logistics, cites the high number of empty lorries on roads all over Germany. According to the Federal Motor Transport Authority, drivers without cargo completed a good 142 million empty journeys in 2023, which exacerbates the shortage of lorry drivers. "Platforms and digital marketplaces improved the co-ordination of journeys, and also help freight forwarders to achieve greater transparency in the supply chain." Such data-driven transparency cuts costs, saves time and reduces CO2 emissions. "The Hamburg-based startup, Shipzero, for instance, has developed a data platform for emissions management in transport chains, and is committed to greater sustainability," Friedrich pointed out. 

Logo of the Digital Hub Logistics: A knotted rope
Digital Hub Logistics for startups

Home port for logistics startups

Startups can find support in the Digital Hub Logistics in the Speicherstadt warehouse district. The innovation space for logistics and retail links up startups, companies, investors and research eases access to key stakerholders in the national and international ecosystem. Belgium's Hyperfox is among the newcomers and raised EUR 3.2 million in a seed round in January and then opened an office in Hamburg in February. "Hamburg is a key logistics hub, and is also home to Europe’s third-largest port and a thriving ecosystem of supply chain and logistics technology companies," a press release said.

Fehmarnbelt Tunnel construction site on the Puttgarden side: A dredger in action
View of Fehmarnbelt Tunnel from Puttgarden

Fehmarnbelt tunnel's potential for metropolitan region 

The planned opening of the Fehmarnbelt Tunnel could make Hamburg even more attractive to domestic and foreign companies. The tunnel should cut the journey from Puttgarden to Rødbyhavn to seven minutes by train or ten minutes by car - the ferry currently takes 45 minutes. That halves the journey time from Hamburg to Copenhagen to 2.5 hours, making travel between Germany and Denmark and between Scandinavia and Central Europe even faster and more comfortable. The 18-kilometre link will be the world's longest immersed tunnel and is expected to create new jobs, boost the economy and protect the climate. Hopes are now high that the tunnel will bolster the regional economy. The picture should become clearer in 2029. "The Fehmarnbelt Tunnel holds enormous economic potential for the Hamburg Metropolitan Region," Friedrich said.
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Sources and further information

Logistics sector 

Hamburg is one of the world's major logistics centres and is now a global hub between Central and Eastern Europe and the entire Baltic Sea region. The logistics sector comprises more than 11,000 companies in shipping, handling and warehousing, air freight, road haulage, courier, express and parcel services and rail freight, employing almost 89,000 people. This workforce generates a gross value added of EUR 11.6 billion in the transport and storage sector alone.

Source: Chamber of Commerce Hamburg

 

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