Global Contract Logistics 2023

NOW AVAILABLE TO DOWNLOAD

 

 

Inflation, increased competition and strained warehousing space creates increasingly challenging environment for contract logistics providers.

The last 12 months has brought an increasingly challenging operating environment for contract logistics providers. High inflation, softened demand, increased competition and strained warehousing space has created a potent mix of industry challenges.

Global Contract Logistics 2023 examines current and future market trends and breaks down Ti’s brand new market size, forecast and segmentation data for 2022, 2023 through to 2027. The report also examines Ti’s State of the Logistics survey results and provides competitive analysis and Top 10 rankings.

Use the report to plan for the rest of 2023 through to 2027 and navigate increasingly challenging market dynamics.

This report contains:

  • 2022 market sizes, and forecasts for 2023 through to 2027, split by region, country and market segment.
  • Contract logistics trend analysis, including supply and demand factors, supply chain disruption, innovation, M&A activity, vertical sector influences and economic activity.
  • Analysis of Ti's State of the Contract Logistics Market Survey results.
  • Competitive analysis.
  • In depth company profiles.
  • Top 10 rankings.

This report contains:

  • 2022 market sizes, and forecasts for 2023 through to 2027, split by region, country and market segment.
  • Contract logistics trend analysis, including supply and demand factors, supply chain disruption, innovation, M&A activity, vertical sector influences and economic activity.
  • Analysis of Ti's State of the Contract Logistics Market Survey results.
  • Competitive analysis.
  • In depth company profiles.
  • Top 10 rankings.

Key Findings:

  • In 2022 the market grew by just 2.9% y-o-y.
  • Ti projects the market will exhibit a slightly quicker pace of growth in 2023, growing by 3.8% y-o-y.
  • 2023 growth will be driven by Asia Pacific, which is forecast to grow 7.8%.
  • Out to 2027, the market will grow at a CAGR of 4.1%.
  • 90% of survey respondents are currently experiencing increased pressure on margins.
  • The main factor driving increased margin pressure is increasing costs.
  • DHL Supply Chain has continued to maintain its place as the global market leader in contract logistics.
  • Warehouse robotics are a popular choice among providers, driven by the flourishing e-commerce landscape.

Key Questions:

  • How fast is the market expected to grow over the next 5 years?
  • Will Asia Pacific continue to drive global growth in 2027?
  • What’s the future for warehousing? Which technologies will dominate the industry?
  • What are the key challenges currently facing the industry?
  • How are operators mitigating limited warehousing space and increasing competition?
  • What are the key logistics technology trends for the next 12 months?
  • Who are the Top 10 3PL providers?
  • What sustainability efforts are the leading industry players adopting?
  • What’s the secret to an exceptional value proposition?

Nia Hudson joined Ti as a research analyst in 2021. She studied History as an undergraduate, before moving on to complete a master’s in public policy at Bristol University, where she developed a keen interest in globalisation and supply chains. During her time at Bristol, she also worked as a teaching assistant in a primary school. Nia is passionate about research and contributes to Logistics Reports and Ti’s Global Supply Chain intelligence portal.

Paul Chapman has extensive experience across a wide range of parcels, delivery and logistics markets. He has authored many reports covering Global, European and UK parcels and logistics markets as well as working on consulting assignments for clients and investors in the sector. His previous experience includes being Research Director at Apex Insight, Logistics Research Manager at Datamonitor and co-founder of Analytiqa. He has a BA in Modern Languages with Business Studies from Swansea University.

Prof John Manners-Bell is Chief Executive of Ti and has over 25 years’ experience working in and analysing the global logistics sector. John started his working life as an operations manager of a logistics company based in the UK. Prior to establishing Ti in 2002, he worked as an analyst in consultancies specialising in international trade, transport and logistics. He also spent a number of years as a manager of UPS, in a strategic marketing and communications role. He is a Fellow of the UK Chartered Institute of Logistics and Transport and former Chair of the Supply Chain and Logistics Global Advisory Council of the World Economic Forum.

 

 

1. Market Sizing 8

1.1 OVERVIEW 8

1.2 SUPPLY AND DEMAND 9

1.3 GLOBAL 11

1.4 ASIA PACIFIC 14

1.5 NORTH AMERICA 16

1.6 EUROPE 17

1.7 SEGMENTATION 20

1.7.1 Distribution 21

1.7.2 Warehousing 23

1.7.3 Value-added services 24

  1. Market Trends 27

2.1 STATE OF THE CONTRACT LOGISTICS MARKET SURVEY: 2023 27

2.1.1 Sample Characteristics 27

2.1.2 Revenue Split 28

2.1.3 Margins 28

2.1.4 Challenges 32

2.1.5 e-commerce 33

2.1.5.1 Outsourcing Trends 33

2.1.5.2 Challenges 36

2.2 WAREHOUSING: STATE OF THE MARKET 37

2.2.1 Warehousing Availability and Cost of Space 38

2.2.1.1 North America 38

2.2.1.2 Europe 40

2.2.1.3 Asia Pacific 41

2.2.2 Cost of Labour 42

2.2.2.1 North America 42

2.2.2.2 Europe 44

2.2.2.3 Asia Pacific 46

2.3 M&A in the contract logistics market: 2023 51

2.3.1 GXO 51

2.3.2 Ryder 51

2.3.3 DHL 54

2.3.4 CMA CGM 55

2.3.5 Maersk 56

2.3.6 Geodis 56

2.3.7 Outlook 57

2.4 Robotics and Automation in the Warehouse 57

 

  

2.4.2 Factors affecting warehouse automation in 2023 and beyond 58

2.4.3 Up-and-Coming Warehouse Technology 62

3. Competitive Landscape 66

3.1 MARKET POSITIONING OF CONTRACT LOGISTICS COMPANIES 66

3.1.1 Vertical Sectors Served 66

3.1.2 Geographic Coverage 66

3.1.3 Profit Margins 68

3.1.4 Comparison of Value-added Services 70

3.1.5 Comparison of Global Warehousing Space 70

3.1.6 Comparison of Technology and Robotics Solutions Employed by Contract Logistics Providers 71 3.1.7 Comparison of Sustainability Targets 73

3.2 Top 10 75

4.1 GXO 76

4.2 Ryder 79

4.3 Kuehne + Nagel 80

4.4 UPS 81

4.5 DSV 83

4.6 GEODIS 84

4.7 DHL 85

4.8 Nippon Express 88

4.9 LOGISTEED 90

4.10 LX Pantos 93

4.11 Rhenus 98

4.12 CEVA 99

  1. Market Forecast 105

5.1 GLOBAL 105

5.1.1 2023 105

5.1.2 2027 107

5.2.1 2023 108

5.2.2 2027 109

5.3 NORTH AMERICA 110

5.3.1 2023 110

5.3.2 2027 111

5.4 EUROPE 112

5.4.1 2023 112

5.4.2 2027 113

ABOUT TI 116

LICENCE AND COPYRIGHT 117

In its latest report – Global Contract Logistics 2023 – Ti’s data reveals that the contract logistics market grew at its slowest pace since 2014 (other than the Covid contraction in 2020), due to the global economic slowdown and subsequent softening economic activity.  

Nia Hudson, one of Ti’s Research Analysts, said “2022 has brought an increasingly challenging operating environment for contract logistics providers, characterised by high inflation and weak demand. Contract logistics companies have largely mitigated inflationary issues at the top line by largely passing increasing costs on to customers. 

 However, from a demand perspective, the market does not seem to have fared as well following the markets post-pandemic bounce back in 2021. Ti’s real terms growth forecast, which shows underlying market growth and changes to market performance, illustrates this well.” 

The Global Contract Logistics Report – written by industry researchers, analysts, and associates – is one of several reports published each year by the Ti team, utilising data from its GSCi knowledge portal, a data powerhouse with over 1m pieces of logistics market data and analysis.  

The report takes an in-depth look at the core trends influencing the contract logistics market, such as M&A, robotics and automation in the warehouse, warehousing availability and costs, and some of the key challenges effecting the contract logistics market.  

Report highlights: 

  • Europe and the US contract logistics markets are not performing as well as Asia Pacific markets 
  • Total contract logistics market grew by 2.9% in real terms in 2022. 
  • The MENA region exhibited the strongest growth in 2022, driven by strong GDP, post-pandemic measures and benefits and financial incentives.  
  • The market is expected to grow at a slightly quicker pace in 2023, driven predominantly by the Asia Pacific region.  
  • M&A deals have been particularly prevalent the past several years, however acquisitions seem to have slowed somewhat into 2023. 
  • 90% of 3PL respondents in Ti’s State of the Logistics Market 2023 Survey stated that they were currently experiencing increased pressure on margins, driven predominantly by increased costs.  
  • Online retailers are expected to continue their outsourcing habits over the next five years, indicating the fundamental change that the market has been undergoing for some time.  

This report is perfect for:

  • C-level executives at logistics companies and shippers
  • VP and Directors responsible for contract logistics services
  • Marketing managers at logistics companies
  • Logistics and supply chain procurement staff at shippers
  • Logistics and supply chain managers at shippers
  • Consultants working in the contract logistics market
  • Financial analysts with interests in the contract logistics market
  • Supply chain analysts at logistics companies
  • Investors
  • Knowledge managers

Report Brochure

Please enter your details below to download the report brochure: