Global contract logistics in 'good health': Transport Intelligence report

 THE global logistics market has risen above its difficulties with revenue growth and margins up, according to the UK's Transport Intelligence report which attribute its "good health" to China's double digit growth from demand for exports in Europe and North America.


Although slightly down from 2008 levels, the sector grew by 8.4 per cent with a profit margin up by three per cent on average in 2010. The sector is dominated by the big players of DHL Supply Chain, three times bigger than CEVA, and recent entrant to the top ten of Europe's Norbert Dentressangle, on the back of a recent acquisition in TDG.


Globally the sector was able to ride out the recession due to the defensive nature of the industry which supported trade recovery, said the report, which noted a subdued growth in contract logistics from developed countries, outside of Germany which benefited from its manufacturing-led recovery.


"There are a number of well-backed and aggressive companies who want to develop their contract logistics business strongly over the coming years," said Ti's chief executive John Manners-Bell, which may prompt a further slew of mergers and acquisition.


"On top of this, we expect the market to continue growing in the high single digit range, as manufacturers and retailers look to out-source more value added services," he added.


Ti's Global Contract Logistics 2011 report covers market data and forecasts, market shares, commentary, top 10s and company profiles.
(Source:http://www.schednet.com)