The global contract logistics market grew at 5% in 2008 according to the latest report published by Transport Intelligence - Global Contract Logistics 2009. This represents a significant weakening of the market after several years of growth of around 10%.
Most worryingly for the industry is that the majority of this growth occurred in the first three quarters of the year, with logistics companies really noticing a drop off in volumes during the 'peak shipping' season. This downturn has been felt well into 2009, although there are signs that the fall in volumes may well have bottomed out by the end of the first quarter.
The highest rates of growth were seen in developing markets such as Asia Pacific, Central & Eastern Europe and Latin America. China's market development cooled, but with GDP growth still in the high single digits, and a $585 billion stimulus package taking effect, underlying economic activity will continue to drive its logistics sector.
In such volatile times, foreing the next five years is highly problematic. However taking into account the significant falls in contract logistics revenues being experienced in 2009 and also the latest economic fores which do not expect a significant recovery until 2011, Ti believes that the market will grow with a CAGR of 2.4% between 2008 and 2012.
According to John Manners-Bell, CEO of Transport Intelligence, 2009 will be a tough year for the industry, despite the contract logistics sector having more 'defensive' qualities than some others.
"Contract logistics companies have a higher degree of protection from market volatility due to the agreements and relationships they have in place with their clients. However with a melt down in sales, manufacturers and retailers will be looking to reduce their supply chain costs and contract logistics companies will increasingly find their margins squeezed at the same time as their underlying revenues weaken. Logistics providers will have to work hard at increasing their value proposition to clients if they are to avoid the worst excesses of the recession."
Global Contract Logistics 2009 contains comprehensive market data, market shares, commentary and company profiles:
How big are the largest Contract Logistics markets?
What is the Total Logistics spend in these markets?
How fast are they fore to grow?
Who are the biggest Contract Logistics providers in Europe, North America, Asia Pacific and the World?
What is their market share?
What are the business principles involved in Contract Logistics?
What are the key trends and developments in the industry?
Which markets have the highest out-sourcing rates?
How fast are the largest companies growing?
How are the biggest players performing?
Global Contract Logistics 2009 is essential reading for everyone who needs a comprehensive and insightful view of the market.
For more information on your own country or for specific market share information, please contact Sarah Smith on +44(0) 1666 511872.