Study on Managing Volatility in Logistics Markets – Examining Challenges, Management Practices, Indices and Digital Business Models

The development of freight prices in logistics markets is subject to notable fluctuations. In addition to seasonally and regionally observable trends, particularly in recent years, changes in freight rates have been challenging to investigate and mitigate. Moreover, in the wake of the COVID-19 crisis, the already volatile logistics industry has undergone unprecedented developments in freight prices, stemming from an overall imbalance between the supply and demand of goods. In this context, sky-rocketing freight rates for individual transport modes have increasingly attracted the attention of practitioners and the media. Consequently, due to increasing external uncertainty and turbulent fluctuations on both the supply and demand sides, actors in logistics markets such as shippers and logistics service providers (LSPs) are increasingly exposed to volatility and urged to develop strategies to mitigate related risks. The Institute for Supply Chain Management at the University of St.Gallen has addressed this challenge by working with its promotional association to develop a study on the management of volatility in logistics markets.