Global Logistics Market 2017-2021
Logistics involve delivering, controlling, and planning of physical flow of goods, information exchange from the producer to a market as to meet the customer demands and outsourcing services that specializes in handling functions, such as transportation, warehousing, and freight and forwarding. Global logistics is the outsourcing of various elements of logistics and distribution by companies to logistics solution providers. There are various logistics providers catering to different businesses with different services. There are three major logistics model under global logistics, namely, second-party logistics (2PL), third-party logistics (3PL), and fourth-party logistics (4PL).
Technavio’s analysts forecast the global logistics market to grow at a CAGR of 6.54% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global logistics market for 2017-2021. To calculate the market size, the report considers the revenue generated by different vendors through the sales of logistics services to various industries that include manufacturing, consumer goods, F&B, automotive, and others.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Logistics Market 2017-2021
Technavio recognizes the following companies as the key players in the global logistics market: DB Schenker, Deutsche Post DHL Group, Kuehne + Nagel, DSV, C.H. Robinson, and Rhenus.
Other Prominent Vendors in the market are: Agility, Allcargo Logistics, APL Logistics, BDP International, CEVA Logistics, Damco, Expeditors, FedEx Supply Chain, Gati, Hitachi Transport System, Hub Group, Hyundai Glovis, Imperial Logistics, J.B. Hunt, Kerry Logistics, Logwin, Menlo Worldwide Logistics, Mitsubishi Logistics, NFI, Nippon Express, Panalpina, Ryder, Sankyu, Sinotrans, SNCF, UPS, Werner Enterprises, and Wincanton.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is dominance of integrated service providers. The logistics market is witnessing the development of integrators. The market is characterized by vendors that are engaged in providing either non-asset-type or asset-type services. However, integrators are a combination of both non-asset-type and asset-type providers.”
According to the report, one driver in market is cost reduction through 3PL. Building infrastructure for logistics is a capital-extensive process, and the investment is blocked for a long time. Therefore, logistics services are outsourced by various companies to reduce operational costs. Outsourcing logistics and other supply chain related services of their operations to 3PL providers allows companies to improve the efficiency of their business by focusing on their core competencies. In addition, shippers achieve high savings by avoiding expenses related to vehicles, warehousing, and machinery. 3PL providers also offer value-added services (VAS) to the SCM needs of shippers by customizing services as per their requirements. Hence, the shipper can partly outsource the logistics needs and carry out the remaining in-house functions.
Further, the report states that one challenges in market is high cost of operation and competitive pricing. With increase in demand for VAS and specialized professional supply chain solutions in the logistics market, the industry is becoming highly competitive in terms of pricing of services. Fuel prices are also rising, further contributing to the cost of operations. Vendors in the global logistics market are under sustained pressure from customers to keep the prices low. Due to volatility of fuel prices, profits from fixed-term contracts with customers have decreased. Customers are demanding lower rates while renewing contracts. Logistics service users are demanding additional services at the same price; thus, companies are facing much pressure in pricing their services. The industry is characterized by its capital-intensive nature.
DB Schenker, Deutsche Post DHL Group, Kuehne + Nagel, DSV, C.H. Robinson, Rhenus, Agility, Allcargo Logistics, APL Logistics, BDP International, CEVA Logistics, Damco, Expeditors, FedEx Supply Chain, Gati, Hitachi Transport System, Hub Group, Hyundai Glovis, Imperial Logistics, J.B. Hunt, Kerry Logistics, Logwin, Menlo Worldwide Logistics, Mitsubishi Logistics, NFI, Nippon Express, Panalpina, Ryder, Sankyu, Sinotrans, SNCF, UPS, Werner Enterprises, and Wincanton.