Logistics Market: Global Industry Review, Statistics, Demand and Forecasts to 2025

The role of logistics as a cross functional link between industries will ensure that the logistics market will continue to grow as it has to adjust to the changes that occurs in every industry that it facilitates its services to. Although this acts as one of the challenges for the logistics market, if seen from a positive angle, it also enables the market to continuously progress and develop, thus creating opportunities of growth.

San Francisco, CA — (SBWIRE) — 08/29/2017 — Global Logistics Market: Overview

Logistics offer businesses advantages such as enhanced delivery performance, reduced operational costs, and improved customer satisfaction, and are thus, becoming increasingly popular. The growth of ecommerce is one of the key factors boosting the global logistics market. The popularity of online shopping is increasing and with it, the demand for logistics services. Applications that are adopting logistic services on a wide scale include healthcare, retail, transportation, manufacturing, government and public utilities, media and entertainment, banking and financials, telecommunications, IT, and trade. It is expected that the use of logistic services will increase significantly in the coming years and this will strengthen the market across the globe.

Global Logistics Market: Key Trends

The role of logistics as a cross functional link between industries will ensure that the logistics market will continue to grow as it has to adjust to the changes that occurs in every industry that it facilitates its services to. Although this acts as one of the challenges for the logistics market, if seen from a positive angle, it also enables the market to continuously progress and develop, thus creating opportunities of growth.

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One of the trends that can be seen in today’s world, is the need for customized and specialized services and logistics services thus comes into picture. Logistics services can be used to realign strategies and ensure growth of any industry to which it is applied. The market environment today is volatile and the rage of online shopping or ecommerce is providing logistics providers considerable growth opportunities.

Global Logistics Market: Market Potential

It is anticipated that a majority of the manufacturing supply chains will make use of business to business commerce networks for their supply and demand, new product developments, and other services. This in turn is expected to boost the global logistics market.

FedEx Express, a key market player intends to start a new flight in April 2017, which will connect, the Liège to the Memphis. This is expected to offer global TNT customers a direct access to FedEx services in Canada and the U.S. Such developments are expected to continue to drive the global logistics market.

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Global Logistics Market: Regional Outlook

Asia Pacific, led by countries such as China, Singapore, India, Indonesia, Malaysia, and Japan was the most lucrative market for logistics in the recent past. The North American logistics market, too has grown considerably owing to growing trade activities between the U.S. and Europe. Among European countries, Germany is a key market for logistics. The Rest of the World is expected to be the most promising regional segment and is expected to expand at a high CAGR in the coming years. Latin America is anticipated to be the most lucrative market for logistics in the Rest of the World, whereas Brazil and Argentina are expected to emerge as potential markets in the future owing to their increasing trade relations with other developing nations.

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Global Logistics Market: Competitive Landscape

Key players in this market include FedEx Corp. (U.S.), C.H. Robinson Worldwide, Inc. (U.S.), Ceva Holdings LLC (U.K.), UTi Worldwide Inc. (U.S.), Expeditors International of Washington Inc. (U.S.), Deutsche Post DHL Group (Germany), J.B. Hunt Transport Services (U.S.), Kenco Group (U.S.), Americold Logistics, LLC (U.S.), XPO Logistics Inc. (U.S.), United Parcel Service, Inc. (U.S.),

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DB Schenker On-Track in Driving Rail Freight Solutions for Customers across Asia Pacific

Best Rail award in APAC for consecutive year cements leadership in multi-modal service offerings • Pioneered & developed Trans-Eurasia Rail link since 2008 • Established Rail solutions & services in Australia and Indonesia

(Singapore July 07, 2017) Since inaugurating the first Beijing – Hamburg rail link in 2008, DB Schenker has since developed an unparalleled portfolio of Euro-Asia Rail door-to-door services, linking China with Germany and the rest of Europe – such as Changsha, Chengdu, Chongqing, Harbin, Hefei, Suzhou, Shenyang,
Wuhan, Yiwu, Zhengzhou with Duisburg, Hamburg, Leipzig, Nuremburg, as well as Lodz, London, Lyon, Tilburg, Warsaw, and many others.

“Having pioneered the rail service between China and Europe some 10 years ago, we are today in a unique position as the market leader for both LCL and FCL. We are proud to be recognized as such and we will continue to drive innovation around our rail products to and from China”, said Mr Thomas Sorensen, CEO for North and Central China. Checkout https://www.pickaloan.co.uk for financial needs.
Along with the Pan-Australia Rail solutions network (linking Sydney to Melbourne, Adelaide, Brisbane, Darwin and Perth), and the Trans-Java Rail solutions in Indonesia (linking Jakarta with Surabaya and Semarang), DB Schenker offers the gamut of daily/regular Full Container-Load (FCL), Lessthan-Container-Load (LCL), Block-trains, multi-customer, reefer services and so on, to customers in the Automotive, Electronics, Industrial/Chemicals, Consumer Goods, and other sectors.

At the recent Asian Freight, Logistics and Supply Chain Awards (AFLAS) held on 29th June 2017, DB Schenker was again ranked as the Best Logistics Service Provider – Rail for the second year running. Having won AFLAS awards in all major logistics related categories in the past, including Best Logistics Service Provider – Sea Freight and Air Freight as well as Best Road Haulier, DB Schenker’s heritage and pedigree in Rail offers truly peerless inter-modal solutions for shippers in Asia.

“Incorporating comprehensive Rail Logistics Services into our suite of solutions unleashes a higher level of robustness, to achieve the optimal balance in calibrating Cost, Lead Time, Risk Mitigation, and Environmental Impact in the supply chain”, added Mr Norman Mummery, SVP Contract Logistics/SCM for Asia Pacific.

“We are humbled and thankful to win this award for the second year in a row, voted by shippers and peers from the industry. As a pioneer and first-mover in Rail among Global 3PLs for Asia, we are unrelenting in pushing the limits to strengthen our network and take our customers further”, says Ditlev Blicher, CEO of DB Schenker in Asia Pacific.”

The awards, hosted and organized annually by Asia Cargo News, recognize leading service providers including air and shipping lines; air and sea ports; and logistics, 3PLs and other associated industry professionals. The nomination and voting process allowed the more than 15,000 readers of Asia Cargo News and e-news subscribers to first determine the leading companies in the market, and then determine the winners, making the results the opinion of service users rather than a panel of judges.

Today’s Top Supply Chain and Logistics News From WSJ

Delivering up-to-the minute news, analysis, interviews and explanatory journalism on logistics, supply-chain management, e-commerce and more.

Amazon.com Inc. AMZN +2.14% is placing one of its biggest bets yet on the global e-commerce arena. The company is buying into the Middle East with its acquisition of Dubai-based Souq.com, the WSJ’s Nicolas Parasie reports, buying into the region’s small but expanding online shopping market . Amazon didn’t give a value but a banker familiar with the deal said it was worth around $700 million. Amazon has been spending heavily on expanding its global footprint but doesn’t often snap up companies as large as Souq.com. Amazon’s move sets up a potentially fierce battle with regional real-estate billionaire Mohamed Alabbar, who plans to launch a $1 billion e-commerce platform called Noon this spring. Online sales in the Persian Gulf region are still small compared with more mature markets, but Amazon is entering on the cusp of what analysts say will be a period of rapid e-commerce growth.

The drive for warehouse space is hitting record levels in Europe, and the demand can be traced back to Seattle. Amazon has become a major force in a European logistics real-estate sector that is being reshaped by online shopping, the WSJ’s Art Patnaude reports. In the U.K. alone, the Seattle-based online retail giant accounted for nearly a quarter of all warehouse property space leased last year. Experts say the rush by Amazon and others to find capacity is drawing in more real-estate investors. While Europe’s overall commercial real-estate investment fell last year, industrial and logistics volumes rose 7.3% to a record $27.24 billion, says CBRE. The key is the growing demand for rapid delivery as online sales grow in Europe’s dense population zones as well as smaller towns that typically are far from the sprawling distribution centers.

Investment cash seems to be flowing into the logistics sector. Shipping technology startup Freightos raised $25 million in a new funding round led by General Electric Co.’s GE Ventures, WSJ Logistics Report’s Erica E. Phillips writes, the second big infusion this week for a logistics tech operation. The funding for Israel-based Freightos follows a $25 million Series A funding round this week for Silicon Valley startup Turvo, which hopes to use software to make it easier for shippers to track and manage their goods across the supply chain. Freightos wants to use the new cash to expand its booking and pricing-information platform, and provide its software to freight forwarders for their back-office functions. In both cases, investors like the focus on technology in a global business. PitchBook Data Inc. says venture capital money flowing into the logistics sector has grown from $60 million in 2013 to nearly $200 million a year ago.



Freight rail consolidation is underway in North America, but it’s not happening with the major railroads. Mexican mining and railroad company Grupo Mexico SAB is buying Florida East Coast Railway Holdings Corp., the WSJ’s Anthony Harrup reports, in a $2.1 billion deal that will give the Mexican company a 351-mile railway with operations in Florida that reach into the U.S. southeast. Jacksonville, Fla.-based FEC runs trains through the ports of Miami, Everglades and Palm Beach, and has agreements that connect with lines that carry cargo as far as Dallas, Atlanta and Charlotte. Grupo Mexico, which operates Mexico’s Ferromex and Ferrosur railways, says the business will complement its operations in Texas. The acquisition will need regulatory approval before closing, a step that may prove more than a speed bump if the Trump administration flags the deal while it considers negotiating a new North American Free Trade Agreement.

Freight railroads probably shouldn’t load up on new coal car orders just yet. The Trump administration is rolling back President Barack Obama’s signature climate-change policies. But the WSJ’s Cassandra Sweet writes that is unlikely to reverse the U.S. utility industry’s shift to natural gas, solar and wind as leading sources of electricity even if it may extend the life of some aging coal-fired power plants. Cheap U.S. natural gas has prompted many companies to scrap older coal plants in favor of gas-fired plants, which require fewer workers to operate, and many utilities say their investments are being driven by economic as well as regulatory forces. The changing energy picture has had a dramatic impact on freight rail networks, even with double-digit gains in coal traffic this year. Coal shipments were up 15.5% in the first two months of 2017 from last year, but that was still just shy of 30% below the coal volume the railroads hauled five years ago.

“E-commerce is forcing investors to look at logistics and warehousing completely differently.”

—Andrew Jones, chief executive of London Metric Property PLC.


Vietnam loading up on logistics

Regional integration and bilateral trade growth are driving Vietnam’s ambitions to become a major transport and logistics hub, though existing port infrastructure will need to be better leveraged to achieve the country’s goals.

Rising foreign investment in Vietnam and growing manufacturing and agricultural output have placed greater pressure on the logistics sector in recent years, with this trend set continue into 2016 and beyond.

Throughput at Vietnam’s ports is set to rise by 10% this year to 470m tonnes, according to data issued by the Vietnam Maritime Administration, while container shipments are pegged to increase by 11% to reach 13.3m twenty-foot equivalent units (TEUs) this year.

Sector prospects

Logistics account for 20-25% of GDP, according to the Vietnam Logistics Business Association (VLBA), with the sector projected to grow by roughly 12% per year through to the end of the decade, driven by a projected $632bn worth of trade by 2020.

Economic integration in Asia and the newly signed free trade agreement (FTA) with the EU and the Trans-Pacific Partnership (TPP) deal are all slated to provide a boost to Vietnamese logistics.

The rollout of the ASEAN Economic Community (AEC) at the end of last year should also see a reduction in bureaucratic procedures and greater regional connectivity, with the ASEAN Single Shipping Market, a key pillar of the AEC, being developed with a view to harmonise shipping industry regulations.

Meanwhile, the EU FTA and the TPP should see trade volumes rise dramatically, with the TPP projected to boost exports by as much as 28% in the next 10 years, according to media reports.

Despite significant expansion in the sector, local firms have not been able to reap the full scope of benefits available. Although there are more than 1200 local logistics companies in operation, most are relatively small and contribute only about 20% of sector revenue and trade activity.

Large-scale foreign operators continue to dominate, with 40 firms handling a combined 80% of the country’s international cargo movements. According to estimates from the VLBA, foreign firms account for between 80% and 87% of sector earnings, which total around $37bn-40bn.

Wholly foreign-owned logistics businesses were legalised in 2012, following Vietnam’s accession to the World Trade Organisation in 2007. Prior to 2012, foreign investors were required to establish joint ventures with local players.

Hub potential

Increased investments by local operators and improvements in connectivity could shift this balance of power, in time allowing domestic freighters to capitalise on growing trade.

With more than 3200 km of coastline and an extensive river network providing access to inland cities and production hubs, as well as neighbouring markets, Vietnam is well poised to develop its logistics sector, according to Nguyen Dang Nghiem, president and vice-chairman of port operator and logistics firm Saigon Newport.

“The geographic location and topographical conditions are some of Vietnam’s main advantages in terms setting up a regional logistical hub,” he told OBG. “Coastal land with deep rivers makes it convenient to build sea and river ports.”

While Vietnam ultimately aims to rival Singapore, Hong Kong or Malaysia as a logistics hub, insufficient transport infrastructure – with port road access at times unable to handle freight volumes – and high levels of bureaucracy are impediments to sector growth.

“Navigation tariffs, import regulations and Customs formalities are hindering Vietnam from becoming a more competitive port in the region,” Nguyen added.

Indeed, as a result of infrastructure shortfalls in some supply chain segments, logistics costs stand as high as 25% of GDP, well above that of Malaysia (13%) and China (18%).

Leveraging capacity

According to industry officials, Vietnam could strengthen its shipping credentials by taking advantage of available capacity at Cai Mep-Thi Vai, a VND40trn ($1.8bn) port complex in the southern province of Ba Ria-Vung Tau that first opened in 2009.

Just 1.16m TEUs were handled at Cap Mep-Thi Vai in 2014, the provincial transport department reported, equivalent to about 17% of the facility’s capacity.

While goods bound for overseas markets are currently transported to Hong Kong or Singapore first, stakeholders argue that repurposing Cap Mep-Thi Vai as a local trans-shipment centre could offer significant savings.

The Vietnam Ship Agents and Brokers Association estimates that handling and shipping Vietnamese goods directly from a local port could boost GDP by more than $2.2bn per year.

Greater efficiencies could also be achieved by anticipated privatisation of nearly a dozen of the country’s ports. In February the Ministry of Transport announced plans to divest state-owned Vietnam National Shipping Lines from nine of the country’s major seaports and companies, while reducing its stake in two other ports to 20%.

DITP Announces ELMA 2015 Winner

DITP Announces ELMA 2015 Winner
Raising standards of Thailand’s logistics service providers towards excellence in logistics management.

Excellent Logistics Management Award 2015 (ELMA 2015), held by Department of International Trade Promotion (DITP), Ministry of Commerce, is another step that proves the capabilities of Thailand’s logistics service providers in becoming excellent in logistics management. After the selection committee had gone through a comprehensive assessment in selecting ELMA 2015 winner, the award went to Pacific Cold Storage Co., Ltd. in the category of Warehousing Services.

Pacific Cold Storage Co., Ltd. is a frozen and refrigerated warehousing provider for raw materials and finished goods. One of the company’s main strengths is its adaptability especially by bringing cutting edge technology to its operation which has seen the company being more successfully and efficiently managed. It is also known as the first company in Thailand that provides cold storage with Mobile Racking system which helps manage warehouses more effectively and reduce operating cost in the long-run.

What we have gained through ELMA

“ELMA is the trophy of pride for logistics service providers and is also a hallmark of excellence in management and logistics services which is recognized both nationally and internationally. Most importantly, ELMA is a powerful tool to raise the company’s competitive advantages in a highly competitive market these days.”

Mr. Jitchai Nimitpanya, Chief Executive Officer, Pacific Cold Storage Co., Ltd.

ELMA 2015 is another key step in proving the capabilities of Thailand logistics service providers and their excellence in logistics management. It is also an efficient tool to raise Thailand logistics standards and to strengthen local and international business owners’ confidence in receiving world-class logistics service quality.

Bangkok International Trade & Exhibition Centre (BITEC), BangnaCapt. Suwipan Thisayamondol (left), the Commercial Advisor, Ministry of Commerceand the President of Award Presentation Ceremony, presented Excellent Logistics Management Award 2015 (ELMA 2015) to Mr.Jitchai Nimitpanya(right), Chief Executive Officer, Pacific Cold Storage Co., Ltd. a subsidiary of JWD Group, who is the winner in Warehousing Services Category.



Vietnamese Ministries and Quang Ngai Leaders come together to avert import crisis

Over the past several weeks marathon negotiations involving the Ministry of Finance, the Ministry of Industry and Trade, the General Customs Department and leaders of the Quang Ngai Provincial Peoples Committee have been meeting in support of Doosan Vina. 


At issue was an import regulation on machinery that would be in Vietnam for a short period of time. Had the matter not been resolved production at Doosan Vina may have been curtailed and completion of projects like the 4,500 ton Desalination Evaporators for Yanbu 3 could have been delayed.


Ryu Hang Ha, Senior Vice President of Doosan Heavy Industries and Construction Korea and CEO of Doosan Vina said, “As an FDI we’ve been very fortunate to have always had a good relationship with, and support from both the national and the local governments in Vietnam; this latest situation is an example of the length that Vietnamese authorities go to in support of FDI in Vietnam.  We are extremely grateful for all that was done by everyone to avert this potentially costly situation.”

Doosan Vina overview

CSCL starts new direct service from Vietnam to Europe

Vietnam is increasing its global integration and has joined the Trans-Pacific Partnership (TPP) and ASEAN Economic Community (AEC), making it possible for local companies to expand their business in the markets around the world.


In contribution to the economic development of Vietnam, there is the important role of logistics and shipping lines   companies, carrying importing and exporting cargoes between Vietnam and important markets including America, Europe and Asia countries.


Among the shipping companies in Vietnam, China Shipping Container Lines (CSCL) is one of the leading carriers in capacity and service quality. The carrier, through China Shipping Vietnam Co., LTD as the general agent locally, is providing competitive and reliable direct services from Vietnam to main destinations in America, Europe, Africa, Australia, Middle East and almost countries in Asia region.


Following the introduction of direct lines to ports of US West Coast and East. CSCL and its partners will start a 02 new direct services linking directly from Vietnam to Europe and Mediterranean in this month, October 2015.


The new direct service to Europe will be started with the vessel CSCL Star, carrying capacity of 14,100 TEU, calling CaiMep Port in Vung Tau province on Oct 28, 2015. This is the largest container ships ever to call Vietnam ports.



The new service by CSCL (AEX7), started with CSCL Star, is expected to offer a most competitive choice for exporters from Vietnam to Europe.  It also promises to bring a higher quality of service for Vietnam local exporters with the fast transit time and lower costs.