Global Logistics and Transportation Industry Outlook 2009: Impact of Economic Slowdown on the Future of The United States, The European Union and The Asia Pacific

Frost & Sullivan
July 8, 2009
77 Pages - SKU: MC2445151
License type:
Countries covered: Global

This Frost & Sullivan research service titled Global Logistics and Transportation Industry Outlook 2009: Impact of Economic Slowdown on the Future of The United States, The European Union and The Asia Pacific provides an overview of the current economic slowdown, shifting trade flow dynamics and the impact of the recession on key components of the logistics industry. The study also examines the impact of industry-specific trends, offers a competitive analysis and positioning of logistics service providers and provides key conclusions. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: global sea trade, global air trade, global land trade, transportation infrastructure, logistics facilities, supply chain services, port operators and industry sectors.

Market Overview

Global Recession Generating Opportunities for the Logistics and Transportation Industry

Logistics service providers (LSPs) and end user companies are faced with opportunities, unconceivable during healthier economic times, to re-align their business processes and emerge stronger from the ongoing economic crisis. Relaxation of trade policies, tariff reductions and multilateral trade agreements has come into prominent focus during the current crisis. "In addition to easing trade regulations and providing tax benefits, sharing global trade information and the acceleration of pending business proposals have been encouraged to facilitate trade," notes the analyst of this research. "This is opening up opportunities for the global logistics and transportation industry."

Governments of various countries have focused on stimulating trade through the introduction of new trade policies and the signing of multilateral trade agreements with other countries. Besides these measures, tariff reductions are playing a pivotal role in improving the trade flow within each country as well as to other countries.

Collaboration Critical to Ride Out Current Crisis

While this bodes well for the transportation and logistics industry, LSPs are facing a tough time. Their businesses are intertwined with particular industry sectors. As a result of fluctuating demand, liquidity crunch in the market as well as this narrow focus on industry sectors, LSPs are confronting a challenging situation. "As most industry sectors such as automotive, retail and consumer electronics, among others, are affected by the on going recession, LSPs who in turn serve them are also being carried along into the declining market," explains the analyst. "In addition, some LSPs focus only on particular sectors, which when affected, bring the LSP down along with the market."

LSPs and end user companies related to different industry sectors must collaborate among themselves as well as with their suppliers to bring forth economies of scale to survive the ongoing crisis. Producers of goods within the same industry must co-operate, ignoring the need to make competitive gains, to ensure full container loads, thereby reducing costs. Similarly, LSPs must collaborate to offer services that would reduce operating costs as well as optimise asset usage. "By adopting these strategies, large trade volumes can be generated," concludes the analyst. "This would bring about much need cost reductions that could be passed onto consumers, and would increase demand in the market."


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