Logistics Revenues Surpass Pre-recession Levels

MarineLink.com
Thursday, May 23, 2013

The latest report from Ti, Global Transport and Logistics Financial Analysis 2013, reveals the winners and losers in the global logistics industry over what has been a tempestuous six year period.
 

Analyzing the financial accounts of 20 of the world’s largest publicly quoted express and logistics companies, the report tracks company performance in terms of revenues, profitability and other financial ratio indicators over the six years. The report reviews mainstream logistics activities on a combined basis as well as across three individual sectors – contract logistics, freight forwarding and freight and trucking. The report also evaluates the results of parcel operations in a separate section.


On an inflation adjusted basis, average revenues for the companies fell by more than 15 percent at the depth of the recession. On the same basis, average revenues are now only seven percent higher than they were 2007.


Analysis shows that throughout the whole period since March 2007, French-based logistics company, Norbert Dentressangle showed the most aggressive growth, more than doubling its revenues, largely through acquisition.


When examining the companies which have grown fastest since the market hit rock bottom in December 2009, Australian operator, Toll comes out top; increasing in size by about 50 percent. This growth was attributed to the company’s expansive strategy in the buoyant Asian market. In addition, US forwarder, CH Robinson and Damco, part of the shipping group A.P. Moller-Maersk, have grown at similar rates.


Margins over the six year period have also seen a rollercoaster ride. From a peak in 2007, they halved to 2.2 percent in December 2009 before regaining much of their ground. Worryingly though, margins have slipped for the last three consecutive quarters. The range of profitability is quite startling even for companies in the same sector. For instance, Expeditors achieved operating margins of 8.9 percet compared with Panalpina’s of just 0.6 percent.


According to the report’s author, David Bagshaw, recessionary pressures were made worse by the industry’s expansive growth in the early 2000s. “After a period of intense merger and acquisition activity, the major players were regrouping and the onset of the recession made their task more difficult and probably depressed profits further,” he commented. “Many players entered the recession with declining margins and, as the recession took hold, margins continued to fall.”


He added, “At the end of 2012, revenue levels in real terms are slightly above those at the beginning of 2007 when the recession set in, but profits are still below the levels achieved in 2007. Nor has the recovery of 2010 been sustained in 2011 with the mixed pattern continuing into 2012. The first half of the year saw growth recorded by a number of companies but towards the end of the year this has fallen away and for some companies margins have declined.”

 

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

Unicom Selects the Ecochlor BWTS for 10 Tankers

Ecochlor, Inc. announced that Unicom Management Services (Cyprus) Ltd. (Unicom), acting for SCF Group, signed a 10-vessel agreement for the Ecochlor Ballast Water Treatment System (BWTS) in Limassol,

Wage Row Between Argentine Crushers, Companies Reaches Crunch Point

Pressure grew on Friday for a resolution to wage talks between exporters and striking crushers in Argentina's Rosario grains hub, with another powerful union threatening

Kongsberg Contracted to Support FLNG Conversion

Kongsberg Maritime secures position in the LNG market with electrical and automation contract for Golar Hilli FLNG   Keppel Shipyard in Singapore and Black & Veatch in the U.

Logistics

Wage Row Between Argentine Crushers, Companies Reaches Crunch Point

Pressure grew on Friday for a resolution to wage talks between exporters and striking crushers in Argentina's Rosario grains hub, with another powerful union threatening

Crowley to Manage 4 Jones Act Ships for Pasha

Crowley Maritime Corp.’s ship management group has been awarded a new contract with Sunrise Operations LLC, a subsidiary of The Pasha Group, of San Rafael, Calif.

Matson Completes Horizon Lines Acquisition

Matson, Inc. has completed the acquisition of Horizon Lines, Inc. which includes Horizon's Alaska operations and the assumption of all non-Hawaii business liabilities.

 
 
Maritime Security Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Sonar Winch
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: 0.1594 sec (6 req/sec)