For the logistics industry, 2013 has proved to be a much more difficult year. A new report published by Ti reviews the performance of twenty of the world’s largest logistics providers shows that only three of these providers grew their total logistics revenue in 2013, and all of them did so at the expense of declining operating profit margins.
The remaining seventeen providers saw declines in revenues and nine of these also saw declines in operating margins. At the end of 2013 only six out of the twenty companies in this review made operating profits of more than 5% of revenue.
Ti analysts look at how performance has changed over the long term (since 2008 – just before the recession) and the medium term (since 2011 just after the recession when ‘normality’ returned. The report examines the logistics industry as a whole and the performance of the three main segments, contract logistics, freight forwarding and freight and trucking operations, Using well understood measures of performance and consistent formats, the report provides the impartial data to reveal the winners and losers in the global logistics industry and the trends of the industry as a whole.
The charts and data covering the longer term show that, at the low point of the global recession the industry had lost over 15% of its revenues and profits had fallen to 2.2% of revenue in December 2009. Revenues then recovered strongly in 2010, levelled off 2011, but then moved upward in 2012 before turning down again in 2013. At the end of 2013 overall revenues in real terms were only marginally higher than in 2008. Of the sectors, freight and trucking revenues have declined, freight forwarding revenues have increased and contract logistics revenues are slightly higher than those in 2008. Operating profit margins for the industry have never recovered to pre-recession levels.
Over the past six years there have been many changes in the structure of the industry with some strong gainers and some problematic losers. There have also been declines and recoveries. The reports provides a profile of the individual companies’ results and the extent of the gains and losses can be seen.
David Bagshaw, Senior Analyst at Ti said, “The results for 2013 bear out what the industry has been saying for some time about market conditions. Much of the logistics industry is already evolving and adapting to new conditions but despite an upturn in trade, the industry collectively has seen a downturn in revenue and profitability in 2013. The sustainability of some elements of the industry must again come into question and more radical changes cannot be ruled out. We will look forward with interest to see the outcomes in 2014.”
Global Transport and Logistics Financial Analysis 2014 is available to purchase now priced £1,295. In addition, and for a short time only, if you pre-register to buy Ti’s upcoming Global Transport and Logistics Sector Leaders 2014 you will receive a further 20% off of the bundle price of £2,090, a saving of over £500! Not only will you receive the discount, you will also receive your copy of the report ahead of publication.
For further information on the reports, on how to purchase them or to pre-register for Global Transport and Logistics Sector Leaders 2014, please contact Mike Nordmann E: [email protected] T: +44 (0)1793 850025.
GLOBAL SUPPLY CHAIN INTELLIGENCE (GSCi)