The automotive logistics market is undergoing significant transformations, with resilient supply chains and sustainability emerging as fundamental components of this evolving industry.
According to DHL, a globally active integrator, the automotive sector is experiencing paradigm shifts across four key dimensions: electrification and connectivity, resilience and agility, sustainability, and shared and digital mobility.
Optimizing Logistics Processes
Fathi Tlatli, Global Auto-Mobility Sector President at DHL, emphasizes the necessity for automotive companies to optimize their logistics processes in response to the increasing demands of this rapidly changing sector. More resilient supply chains are crucial to mitigating unexpected disruptions such as critical component shortages, transportation delays, or raw material supply constraints.
The transition to electromobility and the increasing connectivity of vehicles are expected to be key drivers in mobility transformation. Market penetration of electric vehicles (EVs) is projected to reach approximately 20% by 2025.
Meanwhile, sustainability initiatives in automotive logistics are increasingly focusing on the entire battery lifecycle. This includes the development of processes for battery recycling and second-life applications, which are essential for conserving resources and minimizing environmental impact.
Evolving Logistics Demands
These industry shifts impose new logistical requirements, according to Tlatli. The ability to devise innovative solutions for battery storage and transportation, while ensuring supply chains remain seamless, flexible, and resilient, will be critical for the long-term success of both car manufacturers and logistics providers.
DHL handles a broad range of automotive-related shipments, including but not limited to:
Auto parts and components for production
Production materials
Aftermarket products such as replacement parts and accessories
Tires
Specialized equipment, including machinery and tools
Beyond ensuring uninterrupted production lines and timely dealership deliveries, DHL also provides logistics services for finished vehicles and major automotive exhibitions and events. The company has developed specialized container solutions to transport complete cars securely, particularly for high-profile events like races or the movement of luxury models, ensuring maximum protection and confidentiality.
Leveraging its extensive network and expertise, DHL adds significant value in trade lanes where capacity constraints exist or traditional services are unavailable, facilitating deliveries to even the most remote and challenging locations.
With the expected rapid expansion of new energy vehicles, DHL is strategically positioning itself to support this growth within the automotive sector.
Specialized Automotive Services by Global Freight Carriers
Beyond large freight integrators like DHL, numerous scheduled airlines also provide specialized automotive shipment services. Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, highlights that operating a global network with a widebody fleet enables the company to be a trusted partner for transporting various automotive spare parts.
Similar to DHL, IAG Cargo transports a diverse range of automotive components, including tires, shafts, gearboxes, seats, windshields, electronics, and even entire race cars. The company plays a crucial role in ensuring uninterrupted production by delivering to airports near manufacturing sites daily.
While IAG Cargo predominantly moves automotive shipments to the Americas and Europe, it also facilitates logistics to key destinations such as South Africa, where several European and Japanese automakers operate manufacturing plants.
Recent seaport congestion has led to an increase in airfreight shipments for traditionally ocean-shipped heavy parts, as manufacturers face tight deadlines. IAG Cargo accommodates urgent freight movements with its specialized ‘Critical’ service, designed to ensure time-sensitive shipments are transported with maximum speed and efficiency across its network.
Airfreight’s Expanding Role in Automotive Logistics
Airfreight remains integral to the automotive supply chain. Tlatli of DHL notes that capacity constraints and shifts in the automotive market are driving increased reliance on air transportation.
This trend is also evident at IAG Cargo, where automotive shipments constitute a vital portion of the company’s business mix. While demand typically remains steady to align with production schedules, certain factors—such as new car model launches or unexpected quality issues—can drive surges in airfreight demand as manufacturers prioritize speed and reliability.
Disruptions in seafreight or production-related supply shortages can also necessitate urgent air transport solutions. In such cases, airfreight becomes the only viable option for rapidly delivering essential components worldwide.
Garcia affirms that the automotive industry is undergoing a transformative shift, primarily driven by the transition to electric vehicles. Meeting these evolving demands often requires specialized handling of lithium batteries, necessitating compliance with stringent regulations and rigorous testing. In response, IAG Cargo offers a dedicated Dangerous Goods service to safely transport hazardous materials across its network.
High-Quality Automotive Logistics Solutions by JAL Cargo
Automotive transportation also constitutes a crucial part of the logistics operations of Japan’s national carrier, JAL Cargo. Given the delicate nature of vehicle and automotive parts handling, a spokesperson from Japan Airlines Cargo Division emphasizes the company’s continuous efforts to enhance service quality and reliability in this domain.
JAL Cargo regularly transports passenger cars and racing vehicles, along with various automotive components. Japanese automakers rely on the carrier to move parts manufactured domestically to international production sites or repair facilities, while overseas manufacturers use its services to transport components to customers and repair centers in Japan. Key logistics hubs include Tokyo’s Haneda and Narita airports.
When transporting complete vehicles, size constraints can pose challenges. To address this, JAL Cargo developed J SOLUTIONS WHEEL, a custom-made platform designed in collaboration with leading Japanese automakers to maximize loading efficiency and prevent direct vehicle contact during handling.
Looking ahead, JAL Cargo plans to introduce an enhanced version of J SOLUTIONS WHEEL in 2025, aiming to facilitate the transportation of a broader range of vehicles to more destinations worldwide.
Conclusion
As the automotive industry continues its transformation, logistics providers must adapt to the evolving landscape by enhancing supply chain resilience, embracing sustainability, and leveraging specialized transportation solutions. With increasing market penetration of EVs and shifting manufacturing dynamics, airfreight and multimodal logistics solutions will remain indispensable in meeting the sector’s growing and dynamic demands.
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