Exclusive extracts from this 108-page-long report:
- What is the business?
Logistics concerns the management of the flow of products from the place of their origin to the place of their consumption. The industry thus involves not only transportation from point A to B by road, rail, air and sea, but also standardised or tailor-made materials handling, warehousing, packaging, security, inventory management, supply chain management, procurement, and customs services. […]
- What are the main markets?
The logistics market has become a tale of two speeds: a decline in world merchandise trade volumes has hampered the ocean and air freight markets for several years while demand for logistics in the areas of e-commerce and other niche markets, such as healthcare, has been enjoying tailwinds. 2017 and the first half of 2018 have seen this situation change slightly, thanks to a small increase in global trade growth, breathing some life back into the transport industry. Nevertheless, factors such as growing protectionism and moderate economic growth over coming years do not particularly suggest that trade will remain on a strong upward trend. Meanwhile, it does however seem highly likely that e-commerce and niche market logistics will continue to boom. [...]
- How intense is competition?
Rivalry between logistics companies is generally intense and occurs at the local, regional, national and international level. Despite some recent consolidation, the market remains highly fragmented, particularly in emerging markets, and polarised between large players, offering a comprehensive range of services spanning various regions, and a multitude of local/regional players. Globalisation and the subsequent extended geographical presence of major players have added to this competitive pressure. [...]