New report warns ‘New Retailing’ poses threat to contract logistics Written by SCA Editorial Team
According to Transport Intelligence’s latest report, Global Contract Logistics 2014, sluggish growth in the sector conceals fundamental demand-side changes which threaten the industry.
According to Transport Intelligence’s latest report, Global Contract Logistics 2014, the global contract logistics market grew by 2.8 per cent in 2013, down from 3.4 per cent the previous year. This reflected the ongoing sluggish recovery in the global economy, not least in the Eurozone and the lower than expected growth in the US. From 2013 to 2017, a compound annual growth rate (CAGR) of 6 per cent is forecast for the contract logistics sector. Unsurprisingly, regions which are home to a large number of emerging markets have the highest growth rates, with a CAGR of 8.9 per cent predicted for both Africa and Asia Pacific.
However, according to the report’s author, Thomas Cullen, the sluggish growth conceals systemic changes which are occurring in the industry. ‘The market for contract logistics in the developed world is undergoing its most fundamental transformation since the 1980s as retailing is transformed by e-commerce,’ he commented. ‘In addition, the market for ‘advanced logistics services’ is also expanding as emerging countries move from traditional local markets to modern retailing. The combination of these two forces promises huge potential for contract logistics providers but also substantial threats.’
According to Transport Intelligence’s latest report, Global Contract Logistics 2014, the global contract logistics market grew by 2.8 per cent in 2013, down from 3.4 per cent the previous year. This reflected the ongoing sluggish recovery in the global economy, not least in the Eurozone and the lower than expected growth in the US. From 2013 to 2017, a compound annual growth rate (CAGR) of 6 per cent is forecast for the contract logistics sector. Unsurprisingly, regions which are home to a large number of emerging markets have the highest growth rates, with a CAGR of 8.9 per cent predicted for both Africa and Asia Pacific.
However, according to the report’s author, Thomas Cullen, the sluggish growth conceals systemic changes which are occurring in the industry. ‘The market for contract logistics in the developed world is undergoing its most fundamental transformation since the 1980s as retailing is transformed by e-commerce,’ he commented. ‘In addition, the market for ‘advanced logistics services’ is also expanding as emerging countries move from traditional local markets to modern retailing. The combination of these two forces promises huge potential for contract logistics providers but also substantial threats.’
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