Global Contract Logistics 2020: Covid-19 Impact Analysis

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Global Contract Logistics 2020: Covid-19 Impact Analysis provides the most up to date analysis of the impact of Covid-19 on the global contract logistics market and how contract logistics providers are responding to the crisis. The report also assesses how the crisis will change the future of contract logistics, and if particular segments will be impacted more so than others.

  • How will Covid-19 change the future of contract logistics operations?
  • How will Covid-19 affect contract logistics growth in 2020
  • How are different subsectors of the contract logistics market performing under Covid-19? 
  • And how are contract logistics providers responding to the crisis?

 

Use the report to plan for the rest of 2020 and out to 2024 with all the key data on market growth and vertical sector exposure.

  • Plan which sectors to divert resources towards to capture new growth and which to pivot away from to avoid downside risks
  • Set expectations for market growth based on the latest data and projections and plan how to sustain your business
  • See how other LSPs are dealing with core operational problems with labour shortages and transport crunches, to keep operations moving

 

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This report contains:

  • Global contract logistics market sizing for 2019, 2020 projections and 2024 5-year forecast
  • Projections of the global impact of Covid-19 on market size & growth prospects for 12 largest contract logistics markets under varying severity scenarios
  • An assessment of how the operations of major contract logistics providers have been impacted by Covid-19
  • In depth analysis of the effects of Covid-19 on contract logistics growth in different vertical sectors including: automotive, healthcare/ pharmaceutical, high tech and retail
  • Short term growth projections for the contract logistics market by vertical sector

This report contains:

  • Global contract logistics market sizing for 2019, 2020 projections and 2024 5-year forecast
  • Projections of the global impact of Covid-19 on market size & growth prospects for 12 largest contract logistics markets under varying severity scenarios
  • An assessment of how the operations of major contract logistics providers have been impacted by Covid-19
  • In depth analysis of the effects of Covid-19 on contract logistics growth in different vertical sectors including: automotive, healthcare/ pharmaceutical, high tech and retail
  • Short term growth projections for the contract logistics market by vertical sector

Key Findings:

  • The global contract logistics market grew by 3.5% in 2019. Ti projects that the impact of COVID-19 has already removed the possibility of a repeat performance in 2020.
  • For 2020, a rapid and effective global response to the COVID-19 crisis could mean global contract logistics market expansion of 2.0%
  • There are significant downside risks. In a worst case scenario, Ti projects a global contract logistics market contraction of -10.2%
  • 12 individual contract logistics market 2020 growth projections reveal significant degrees of downside risk, highlighting the potential cliff-edge many face if they fail to control COVID-19.
  • Not all contract logistics-intensive sectors and sub-sectors are seeing negative impacts

Key Questions the report asks and answers:

  • Which sector and segments will suffer the most from the crisis? Will they be changed forever?
  • How will Covid-19 impact projected contract logistics growth in 2020?
  • How is the contract logistics market expected to grow in the longer term to 2024?
  • How will different vertical sectors perform through the crisis? Will the short team peaks seen by some sectors like consumer electronics and grocery last?
  • How will major contract logistics providers recover and what strategies will they employ to overcome the challenges they face operationally, strategically and financially?
Nick Bailey

As Head of Research, Nick is responsible for all of Ti’s research products, including logistics market and vertical sector reports, as well as Ti’s flagship Global Supply Chain Intelligence (GSCi) market intelligence portal. Nick is actively involved in research for these product ranges, as well as in the development of new and existing research capabilities at Ti. Nick also coordinates the efforts of Ti’s team of researchers and analysts, and supports Ti’s consultancy offering for a global client base. 

Professor John Manners-Bell

Prof John Manners-Bell is Chief Executive of Ti, Honorary Visiting Professor at the London Metropolitan University’s Guildhall Faculty of Business and Law and an adviser to the World Economic Forum. He 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. John holds an MSc in Transport Planning and Management from University of Westminster and is an Associate of King’s College London where he studied Classics and Theology. 

Holly Stewart

Holly joined Ti as a researcher in 2018. Whilst at university she gained much experience in both primary and secondary research, as well as enhancing her analytical and evaluation skills. Studying History developed Holly’s interest in politics and geopolitics. After graduating, Holly worked in product development, dealing with suppliers and customers from around the world, including in Asia Pacific and Europe. Since working at Ti, she has worked on and gained interest in emerging markets logistics and peak season. As part of her role as a researcher Holly contributes to logistics briefings and GSCi, in particular, provider profiles, countries and regions.

Beth Poole

Beth joined Ti as a researcher in 2019. She graduated from Cardiff University with a degree in Criminology and Sociology and a Masters in Social Science Research Methods. Both degrees provided her with a good knowledge and experience in both primary and secondary research which she now applies to her role at Ti. Beth enjoys analysing new trends in logistics and researching the emergence of new technologies. As part of her role as researcher Beth contributes to Logistics Briefing and Ti’s Global Supply Chain intelligence portal.

Dila Cebeci

Dila joined the Ti team in late 2019, having graduated from the Transatlantic Masters program from the University of North Carolina in Chapel Hill earlier that year. Paired with her Bachelors degree in Interdisciplinary American Studies from the Eberhard Karls University and professional experiences in the new media and communications she has been exploring and solidifying her interest in geopolitics, foreign relations, and international studies. The overwhelming overlap and relevance for the logistics sector has subsequently allowed her to utilise her acquired skills as a Research Analyst at Ti.

 

Table of Figures  4

1.0 Global Contract Logistics Market Sizing Analysis  5

1.1 Global 5

1.1.1 Global 2019  5

1.1.2 Recovery in growth sluggish into 2020  6

1.1.3 Global 2024  7

1.2 Asia Pacific  8

1.2.1 Asia Pacific 2019  9

1.2.2 Asia Pacific 2020  9

1.2.3 Asia Pacific 2024  10

1.3 Europe  11

1.3.1 Europe 2019  12

1.3.2 Europe 2020  13

1.3.3 Europe 2024  13

1.4 Middle East and North Africa  14

1.4.1 Middle East and North Africa 2019  15

1.4.2 Middle East and North Africa 2020  16

1.4.3 Middle East and North Africa 2024  16

1.5 North America  18

1.5.1 North America 2019  18

1.5.2 North America 2020  19

1.5.3 North America 2024  19

1.6 Russia, Caucasus and Central Asia  21

1.6.1 Russia, Caucasus and Central Asia 2019  21

1.6.2 Russia, Caucasus and Central Asia 2020  22

1.6.3 Russia, Caucasus and Central Asia 2024  22

1.7 South America  22

1.7.1 South America 2019  23

1.7.2 South America 2020  24

1.7.3 South America 2024  24

1.8 Sub-Saharan Africa  25

1.8.1 Sub-Saharan Africa 2019  25

1.8.2 Sub-Saharan Africa 2020  26

1.8.3 Sub-Saharan Africa 2024  27

3.0 Vertical Sector Reactions to Coronavirus  27

3.1.1 Ford Motor Company  28

3.1 Automotive  29

3.1.2 General Motors  31

3.1.4 Volkswagen (VW) 31

3.1.5 PSA  32

 

Honda  33

3.1.3 Fiat Chrysler Automobiles  33

3.1.6 BMW   33

3.1.7 Toyota  34

3.1.8 Hyundai 34

3.1.9 Volvo  35

3.1.10 Jaguar Land Rover 35

Tesla  36

3.1.11 Nissan  36

3.1.12 Daimler 37

3.1.13 Renault 37

3.1.14 Ferrari 37

3.1.15 Mazda  37

3.1.16 Aston Martin  38

3.2 Retail 38

3.2.1 Supermarkets  38

3.2.2 Collaboration to Tackle Supply Chain Demand  40

3.2.3 Fashion Retailers  40

3.2.4 High Street 42

3.2.5 Fast Fashion  43

3.3 Healthcare and Pharmaceutical 45

3.3.1 Demand in a pandemic  46

3.3.3 Governments and supply chains  47

3.3.2 Manufacturing and supply  48

3.4 High Tech – JMB piece  49

4.0 Contract Logistics Provider Operations Overview  51

4.1 Financial Impacts  51

4.2 Geography  52

4.3 Providers  52

4.3.1 Labour Relations  54

4.3.2 Automation  55

4.4 Individual Provider Responses  56

4.4.1 CEVA  56

4.4.2 DB Schenker 56

4.4.3 DHL Supply Chain  57

4.4.4 DSV Panalpina  57

4.4.5 Hitachi 58

4.4.6 Geodis  58

4.4.7 Nippon  59

4.4.8 UPS  59

 

Global Contract Logistics market faces a cliff-edge as COVID-19 risks a 2020 contraction of 10.2%, new research reveals

New research from Transport Intelligence (Ti) finds a global contract logistics market facing a downside cliff edge in 2020, as COVID-19 disruption strangle production and freeze retail in key logistics intensive sector. Indeed, the research finds that COVID-19 has thrust the global contract logistics market into a near unprecedented state of uncertainty.

Having expanded by a very solid 3.5% in 2019, the contract logistics market achieving such a growth rate on 2020 now appears impossible, even though less than one quarter has passed. Ti’s research finds that, in a scenario of rapid and sustained global success in the fight against COVID-19, the global contract logistics market may still achieve a 2.0% growth rate in 2020. However, should there be a failure to do so, a prolonged epidemic would lead to a severe market downturn. Under these conditions, a global recession would be the backdrop against which the contract logistics market is projected to contract by 10.2%.

Alongside the global growth projection, Ti also analyses the impact of COVID-19 scenarios across the European and North American markets as well as in 12 individual countries globally. The growth projections reveal significant and varying degrees of risk, and the range of growth potential shows how much is at stake for retailers, manufacturers and contract logistics providers in 2020.

“It already feels like a very long time since 2019, which despite not always being a straightforward year for contract logistics – particularly as automotive sales struggled – was actually quite a positive year in growth terms,” said Nick Bailey, Head of Research at Ti. “The big challenge this year though is obviously the spread of COVID-19 and the unprecedented response we’re seeing to it on a global basis. It’s all but inevitable that we’ll have a global recession this year, and contract logistics will suffer. Optimistically we might see a quick recovery as the economy, supply and demand all bounce back and growth returns, but the downside risks are potentially dire for the market.”

The research in Ti’s new Global Contract Logistics 2020: COVID-19 Impact Analysis report also reveals that despite the challenging situation, rapid shifts in consumer demand, buying behaviour and emerging trends are creating opportunities for LSPs that can react and adapt. Not all contract logistics-intensive sectors and sub-sectors are seeing negative impacts. Across grocery, consumer electronics, automotive, fashion and pharmaceuticals and other sectors, distinctly separate and highly divergent growth trajectories are forecast.

 

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

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