TI Report Calls for New Contract Logistics Mindset

MarineLink.com
Monday, June 17, 2013

In its latest report, Global Contract Logistics 2013, Transport Intelligence (TI) found the global contract logistics market grew by 3.4% in 2012 to €159.35 billionn.

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 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,” said Roberson, Senior Analyst at Transport Intelligence. 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 U.S. and Europe in favor 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.”

However, penetrating the new emerging markets will not be straightforward, Roberson added. “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.”
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Swiftships to Procure Patrol Craft Kits for Egyptian Navy

Naval Sea Systems Command (NAVSEA) awards contract to Swiftships for four 28-meter KITs for the Egyptian Navy   On June 28, 2016 Louisiana-based Swiftships, LLC,

Ingalls to Build US Warship LH8

Huntington Ingalls Industries (HII) announced that its Ingalls Shipbuilding division has been selected to build the U.S. Navy’s next large-deck amphibious assault warship, LHA 8.

Asia Tankers-VLCC Rates Expected to Soften

MidEast rates slip from two-week high on June 28; raft of new ships and repaired vessels weigh on rates. Freight rates for very large crude carriers (VLCCs)

News

US Oil Drillers Add Rigs for 4th Week in 5

U.S. drillers this week added oil rigs for a fourth week in five, according to a closely followed report Friday, in the best month of producers returning to the

Vale Sells 3 Valemax Iron Ore Ships to ICBC

Brazil's Vale SA said it has sold three of its giant "Valemax" iron ore ships to a group led by Industrial and Commercial Bank of China, continuing efforts to unload

Fincantieri Launches Silver Muse

Silver Muse, the new ultra-luxury cruise ship which Fincantieri is building for the ship owner Silversea Cruises, was launched at Fincantieri’s shipyard in Genoa Sestri Ponente.

Logistics

Op/Ed: Supply Chain Hindered by Cumbersome Regulation

The Federal Maritime Commission (FMC), which has always been a valuable resource in supply chain management, announced the formation of a Supply Chain Innovations

Asia Tankers-VLCC Rates Expected to Soften

MidEast rates slip from two-week high on June 28; raft of new ships and repaired vessels weigh on rates. Freight rates for very large crude carriers (VLCCs)

Will Zim Join 2M?

Israeli carrier Zim Integrated Shipping Services (ZIM) might join the 2M Alliance between Maersk Line and Mediterranean Shipping Co., Alphaline said quoting industry sources.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0859 sec (12 req/sec)