May 1st 2015, London, UK- Innovations and economic growth spurs on North America’s contract logistics market
Inefficiencies within the transportation and logistics industry have resulted in disruptions from new business models and technologies so notes Ti’s latest report, Global Contract Logistics 2015. Amazon, Uber, augmented reality, drones and autonomous cars are all changing how we look at the this industry and by all indications it is likely the transportation and logistics industry today will be quite different in ten years’ time.
As such, the contract logistics market is growing and embracing these ‘disruptions’. DHL, the largest contract logistics provider in the world, has been a leader in innovations – trialing new ideas such as augmented reality in select warehouses, drone delivery of pharmaceuticals and partnering with Amazon and Audi to deliver packages to trunks of cars.
In addition, m&a activity is on the rise as the contract logistics market worldwide consolidates. This was highlighted just this week by US-based XPO Logistics acquiring the French logistics provider Norbert Dentressangle, a leading contract logistics provider in Europe.
For North America the contract logistics market represents almost 26% of the global market. In 2014, the US, the largest contract logistics market, grew at 3.8%. Market dynamics in the US contract logistics sector boosted growth. For instance, the fear of a capacity crunch caused by truck driver shortages has increasingly led shippers to shift to dedicated contract carriage solutions.
While the market is one of the most fragmented, DHL Supply Chain/Exel, Neovia and UPS are among the top contract logistics providers for North America. But making an entrance in the top 10 this year is FedEx thanks to its recent acquisition of Genco.
The North American contract logistics will continue to play a major role in the global market through 2018 growing an estimated average 5.5% each year for the period. However, the even stronger growth in APAC will result in North America’s share of the global contract logistics market to decline to 24.6%.
Commenting on the report’s findings, Ti analyst, David Buckby, said: ‘The contract logistics market has really benefited from stronger economic fundamentals in most key markets. We have also seen the positive influence of trends such as e-retail which has increased the role and importance of logistics. We believe that global contract logistics growth will steadily accelerate in the coming years, although this relies heavily on European and US economic performance improving and merely a gradual slowdown of the Chinese economy.’
Notes to Editors
About Global Contract Logistics 2015
Global Contract Logistics 2015 provides industry-leading research into development and innovation within the global contract logistics market. Providing unique analysis of global, regional and country level contract logistics market sizes as well as detailed profiles on some of the leading logistics players.
About Transport Intelligence
Transport Intelligence (Ti) is one of the world’s leading providers of expert research and analysis dedicated to the global logistics industry. Utilising the expertise of professionals with many years experience in the mail, express and logistics industry, Ti has developed a range of market leading web-based products, reports, profiles and services used by all the world’s leading logistics suppliers, consultancies and banks as well as many users of logistics services.
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