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Contract logistics 'needs a new mindset', says Ti's latest report

...the changing market dynamics will require a new mindset from contract logistics providers, with the need to focus their strategy on these emerging markets.
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17th June, 2013, London, UK: The global contract logistics market grew by 3.4% in 2012 to €159.35bn, the latest report 'Global Contract Logistics 2013', from industry experts, Transport Intelligence, has found. However this figure hides an increasing divergence in the performance of regional markets, with growth in emerging markets much higher than those in Europe or North America. For example, the Middle East grew at 5.7%, whilst the Asian contract logistics market grew at 6.0%; due to an emphasis on intra-Asian trade. This contrasts with growth in North America which was only 3%, and an even weaker 0.9% growth rate in Western Europe.

This gap in performance is set to widen with the outlook for emerging markets through 2016 remaining strong. Europe's 37% share of the market is likely to fall to just 31% in 2016, whilst Asia's share will increase by 5 percentage points to 36% over the same time scale.

According to the report's lead author, Cathy Roberson, the changing market dynamics will require a new mindset from contract logistics providers, with the need to focus their strategy on these emerging markets.

"In the aftermath of the 2008 global recession, the contract logistics market must evolve once more. Whilst nobody can doubt China's enormous potential, a second tier of economies is developing, as manufacturers look to produce and source goods from a range of low cost markets. Trade lanes are shifting away from the US and Europe in favour of emerging markets such as Brazil, Russia, South Africa and the Middle East. Logistics providers must develop their service offerings and expand into these new geographic markets," commented Roberson, Senior Analyst at Transport Intelligence.

However, penetrating the new emerging markets will not be straightforward as Roberson went on to add. "When entering an emerging market, logistics providers have to overcome the challenges of developing new solutions, such as an e-commerce offering, while at the same time dealing with undeveloped infrastructure, bureaucracy, corruption, security and a volatile business environment. The rewards are obvious, but a thorough understanding of the risks is essential."

About Global Contract Logistics 2013

Global Contract Logistics 2013 is a completely new-look report from Transport Intelligence. Comprising a detailed analysis of the evolution of the sector, it includes sections on Mergers & Acquisitions (details of major acquisitions and amounts paid); comprehensive market sizing and forecasts, with historic figures and market shares; a detailed analysis of logistics service providers market positioning; potential operating margins and company profiles of the leading players.

For more information about Global Contract Logistics 2013 please visit www.transportintelligence.com/market-reports/report-global-contract-logistics-2013/310/

About the Ti Emerging Logistics Markets Conference, sponsored by Agility

In September, Transport Intelligence will host a two-day event, sponsored by Agility, focusing on emerging logistics markets. The conference will examine recent trends, assess potential future developments, analyse the significance of supply chain risk and evaluate planned investments in Asia's transport infrastructure. Ti's new report, Global Contract Logistics 2013, will inform discussions held at the event. For more information, please visit www.ticonferences.com.

About Transport Intelligence

Transport Intelligence (Ti) is one of the world's leading providers of expert research and analysis dedicated to the global logistics industry. Utilising the expertise of professionals with many years experience in the mail, express and logistics industry, Ti has developed a range of market leading web-based products, reports, profiles and services used by all the world's leading logistics suppliers, consultancies and banks as well as many users of logistics services. www.transportintelligence.com

For more information contact:

Matthew Campbell
Marketing Manager
mcampbell@transportintelligence.com

+44 (0) 1666 519915
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Submitted by: LogisticsWorld
news@logisticsworld.com, 6/22/2013 1:53:16 PM

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