Transport Intelligence News

The shipping & logistics company GAC is tapping into the growing contract logistics business potential of the Asia Pacific, Indian Subcontinent and Middle East, with plans to further develop and expand in its operations in the regions.That was the message Lars Bergström, GAC’s Group Vice President for Asia Pacific & Indian Subcontinent, had for the Group’s Contract Logistics Solutions experts who gathered in Colombo, Sri Lanka, to chart GAC’s strategy to increase its share of the business in their regions. They discussed growing demand as a result of the rise of e-commerce, last mile deliveries and technological advancements, as well as the challenges the contract logistics sector faces.According to Transport Intelligence’s Global Contract Logistics 2018 report…

Amazon.com Inc is aggressively expanding its logistics operations in China as part of a broader effort to control the rising cost of shipping billions of packages. Its plans in China, outlined in filings there, include handling cargo and customs for goods headed to ports in Japan, Europe and the United States. Some analysts say the move could help position Amazon to offer shipping services to other companies, eventually competing with the likes of United Parcel Service Inc and DHL Worldwide Express BV. That would mirror the strategy of Amazon's cloud computing arm, Amazon Web Services, which is now the company's fastest growing unit. The service was launched to serve Amazon's own retail operations but now hosts data for other companies.

The index that tracks shipper and freight forwarder confidence in the activity of the U.S.-Europe and Asia-Europe shipping lanes hit its lowest level in December in the index's nearly four-year history, reports Reuters. It has hit by lower margins for European freight forwarders such as Denmark's DSV because of overcapacity in shipping. The "Stifel Logistics Confidence Index," published by U.S. investment firm Stifel Financial Corp. and U.K.-based consultancy Transport Intelligence showed particularly low confidence in the transport business along the Asia-Europe routes where spot freight rates were barely profitable for shipping companies for much of last year. The Index posted a score last month of 45.4, continuing what has been a months-long decline.

A new research report from Transport Intelligence (Ti) has suggested that due to a wave of new investment, the scope and structure of oil and gas exploration and production (E&P) has broadened extensively over the past decade, creating an array of opportunities for logistics service providers. This is, in part, due to the emergence of substantial E&P activity in new locations which acts to drive up logistics spend. Ti’s new report, Oil and Gas Exploration and Production Logistics 2013, identifies double-digit growth in the E&P logistics spend in Russia, Latin America, Africa and Asia Pacific for 2012. In Europe and the USA the market grew by 8% and 8.5% respectively.

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.

The Stifel Logistics Confidence Index continued its downward trend in May as it fell for the second consecutive month. Compiled by Transport Intelligence, the overall index, which combines the current situation with future expectations, was down 0.8 points from April to 50.7 in May and was 1.3 points lower compared with the same month in 2012. Yet, even with deteriorating confidence, the Logistics Confidence Index registered above the 50 threshold, indicating growth, for the fourth consecutive month. Lucy Palmer, Economist at Ti, observed, "Air forwarders have continued to express less optimism compared with sea forwarders since the index began in March 2012…

The Stifel Logistics Confidence Index increased for the fourth consecutive month in February 2013, according to the latest survey undertaken by Transport Intelligence. The index combining both the current and expected situation rose 3.3 points to 52.1 from 48.8 in January. Both sea and air forwarders indicated an improvement in the present environment compared with January. The index for air freight increased 3.4 points to 43.1 in February, while the increase in sea freight was slightly less marked, up 1.7 points to 48.3. The approach of the Chinese New Year was apparent, as the Asia to Europe lane for both air and sea saw a greater improvement than other routes.

Stifel Nicolaus Logistics Confidence Index suggests the current market remains weak, however the outlook is increasingly positive. The Stifel Nicolaus Logistics Confidence Index increased for the third consecutive month in January 2013, according to the latest industry study undertaken by Transport Intelligence. The overall index, an average of the current and expected situation, increased 0.8 points to 48.8 from 48.0 in the last month of 2012. Increased sentiment among sea forwarders drove the overall increase. In terms of the current logistics situation, the sea freight index increased 1.8 points to 46.6 in the first month of 2013. Meanwhile, air freight continued to lag, down 0.8 points to 39.7. At below the 50.0 mark, both indices indicate weaker volumes relative to the time of year.

Middle East contract logistics market to sustain 6.9 percent average growth to reach over USD 3.7 billion in 2015; Barloworld Logistics intensifies growth plans in Middle East, anchored on integrated smart supply chain solutions. Barloworld Logistics, a provider of logistics and supply chain management solutions, has announced that it is intensifying its growth plans in the Middle East as the region’s contract logistics services market expects to sustain a 6.9 per cent compound annual growth rate (CAGR) from 2011 to 2015, according to a study by Transport Intelligence.

“The Alliance will profile shippers and their alliance partners who have successfully and dynamically collaborated to drive supply chain excellence,” said Sarah Harding, group publisher, World Trade 100. To evaluate the entries, a panel of judges will examine the role of each of the partners and the contributions their individual and collective efforts have made to solving a supply chain problem or driving change and continuous improvement in a supply chain. “Judges Perry A. Trunick, World Trade 100; John Rader, Red Rock Consulting; Mike Brown, Brainzooming; David Ross, Stifel Nicolaus; Michael Mikitka, Warehousing Education & Research Council; Kevin Huntsman, Mastio; and John Manners-Bell, Transport Intelligence will evaluate submissions in each category on metrics and results.