McKinsey Insights

European rail has a reputation for being safe, smart, and green, and other countries around the world are working to increase passenger and freight rail modal share as this provides a sustainable transport solution. But environmental sustainability is only one part of the sustainability puzzle. Environmental, social, and governance (ESG) criteria play an important role in helping companies and industries become more sustainable. Globally, and across industries, a major part of ESG growth has been driven by the environmental component of ESG and responses to climate change. But other components of ESG, in particular the social dimension, have also been...

After surging in 2021, funding for logistics start-ups slowed substantially in 2022. Among the causes of the slowdown: a more challenging macroeconomic environment coupled with a decline in the growth of e-commerce. Investment in logistics start-ups fell by nearly 50 percent year on year, with the steepest drop occurring in the year’s second half as higher interest rates took a severe toll on venture capital activity. Our June 2022 article “Start-up funding in logistics: Focused investment in a growing industry” examined the 2021 boom, when funding reached an all-time peak for the sector. This article explores the more recent deceleration,...

Many distributors are finding it difficult to grow revenues and maintain margins while meeting the rising expectations of customers. Hiring and retention challenges, sharp demand variability, uncertain supply lead times, shortages, and inflationary pressures may seem like the new normal. But opportunities abound for those who know where to look: distributors can meaningfully improve operational excellence to create more value for shareholders, customers, and suppliers. In our inaugural survey of operations leaders in more than 80 North American distributors across more than a dozen subsectors, we identified many operations shortfalls—along with improvements that are helping about one in ten distributors...

Around seven million medium- and heavy-duty freight trucks circulate the United States today—and almost all are powered by traditional internal combustion engines (ICEs). This legion of vehicles generates more than 25 percent of total greenhouse gas emissions (GHGs) from the transportation sector, including carbon dioxide and nitrogen oxides, pollutants that threaten the population’s respiratory and cardiovascular health. As truck transport continues to grow—with about 65 percent of freight tonnage expected to be shipped by truck in 2050—emissions grow as well. The United States faces a transition point where it must move toward renewable energy and zero-emission vehicles (ZEVs). Unlike their...

Imagine a future where your travel choices have no geographic constraints. Where you can join your friends in the front row of a concert by your favorite star—but the crowd is 300 million strong, your friends are on the other side of the world, and it’s all happening at the Great Pyramid of Giza. Later you’ll do some shopping at the virtual souk and take a digital Nile cruise, before teleporting back home in an instant. Impossible? Or a tempting package trip that might soon be available from the comfort of your home? With the internet’s rapid evolution, many see...

Shipping companies—encouraged by regulation, customer demand, investor pressure, and internal goals—are searching for ways to decarbonize their fleets. Greener-fuel possibilities abound in the maritime world, and the industry is in a period of experimentation and exploration to understand the implications of adopting such fuels. To find out how industry leaders are thinking about future fuels, the Global Centre for Maritime Decarbonisation, the Global Maritime Forum, and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping recently conducted a survey (with analytical support provided by McKinsey) of shipping companies. Collectively, these companies own and operate fleets—including container ships, tankers, dry bulkers,......

China is now removing travel restrictions rapidly, both domestically and internationally. While the sudden opening may lead to uncertainty and hesitancy to travel in the short term, Chinese tourists still express a strong desire to travel. And the recent removal of quarantine requirements in January 2023 could usher in a renewed demand for trips abroad. Domestically, there are already signs of strong travel recovery. The recent Chinese New Year holidays saw 308 million domestic trips, generating almost RMB 376 billion in tourism revenue. This upswing indicates that domestic travel volume has recovered to 90 percent of 2019 figures, and spending...

Cargo airlines enjoyed a period of high revenue—driven by scarce capacity—during the pandemic. But after the boom of the past three years, yields are gradually falling from the 2021 peak. Belly cargo capacity is recovering, and demand is softening, leading to uncertainty as cargo airlines brace for the risk of a “back to normal” scenario. This raises the issue of how cargo airlines can make sure that the “back to normal” is not a “hard landing”. In this environment, a new approach to revenue management could be the key that allows airlines to adjust their commercial strategies and continue to...

In the past decade, Chinese tourism’s total revenue saw double-digit annual growth. Just before COVID-19 shocked the industry, the country’s 6 billion domestic and 155 million outbound trips from mainland China generated around $1 trillion in travel spend. This propelled China to the top of global rankings for domestic tourism spend and outbound traveler numbers. Now, confidence in post-pandemic tourism recovery is growing. Chinese travelers are still yearning to travel—and with domestic and international reopening policies in place, tourism’s recovery is on the horizon. In a new report, The path toward eco-friendly travel in China, McKinsey, Accor, and Trip.com Group...