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

Contracts

Naviera Nabia Orders Newbuild from Gondan

Gondan Shipyard signed a new contract for the construction of a new vessel for Naviera Nabia, part of Acuña Group, from Bueu (Pontevedra-Spain). This new catamaran

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Technip Bags Statoil's Umbilical Supply Contract

Technip’s wholly-owned subsidiary Technip Umbilicals Ltd.(1) has been awarded a contract by Statoil ASA to supply the umbilical(2) to the Oseberg Vestflanken 2 field offshore Norway.

News

Guinean Sailors Arrested after Clash with Sierra Leone Navy

Sierra Leone was holding 11 Guineans including military personnel in custody on Wednesday following a confrontation at sea involving the two West African neighbours' navies,

Fleet Week Underway in New York

Parade of ships signals start of Fleet Week New York 2016   Now in its 28th year, New York Fleet Week has commenced, with ships from the U.S. Navy, U.S. Coast

Davie Begins First Resolve-Class AOR Conversion

Davie Shipbuilding has cut first steel for the Resolve Class Auxiliary Oiler Replenishment vessel.   The project consists of converting a containership into an

Logistics

SOLAS Container Weight Requirements FAQ

With new rules regarding the declaration of the accurate gross mass of a packed containers due to enter force, the International Maritime Organization (IMO) answers

Baltic Index Down on Lower Demand for Larger Vessels

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Wednesday hurt by sluggish demand for large vessel sizes.

Commodities Shipping Firms Struggle to Ride Out Worst Downturn

Shipping companies transporting coal, and iron ore and other commodities are urgently seeking ways to conserve cash and withstand the worst market downturn on record

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators 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: 0.0854 sec (12 req/sec)