Executive Briefings

Emerging Logistics Markets Tapped by Study

More than 80 percent of the world's population resides in what is known as "emerging markets". This group of countries represents a diverse collection of economies from China to Peru and Ethiopia to Kazakhstan.

Emerging Logistics Markets Tapped by Study

Combined, emerging markets have witnessed impressive economic growth over the past few years in comparison to developed economies such as the European Union and the U.S. and present great opportunities for logistics and transportation providers.

As a percentage of global import and export value, emerging markets have expanded their share over the past four years. From 26.1 percent of total global import value in 2009, emerging markets now comprise almost a third of global import value at 30.8 percent. For global export value, emerging markets were responsible for 31.0 percent in 2009 and has increased its share to 35.8 percent by 2012.

Transport Intelligence's latest report, Global Emerging Markets Logistics 2013, takes an in-depth look at this collection of countries. While there are plenty of opportunities in these countries, it is not for the risk-adverse. Political upheavals such as in Egypt, natural disasters as observed in Thailand in 2011 and domestic economic issues in Brazil and India are among the many supply chain risks that must be taken into account.

Even so, demand for logistics services in emerging markets is outpacing that of developing markets. For example, the global contract logistics market grew at 3.4 percent from 2011 to 2012; however, for the same period, emerging markets grew at 9.4 percent. Perhaps not surprising, some of the biggest growth rates were noted in emerging countries within Asia and the Middle East at 10.8 percent and 10.6 percent, respectively.

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Combined, emerging markets have witnessed impressive economic growth over the past few years in comparison to developed economies such as the European Union and the U.S. and present great opportunities for logistics and transportation providers.

As a percentage of global import and export value, emerging markets have expanded their share over the past four years. From 26.1 percent of total global import value in 2009, emerging markets now comprise almost a third of global import value at 30.8 percent. For global export value, emerging markets were responsible for 31.0 percent in 2009 and has increased its share to 35.8 percent by 2012.

Transport Intelligence's latest report, Global Emerging Markets Logistics 2013, takes an in-depth look at this collection of countries. While there are plenty of opportunities in these countries, it is not for the risk-adverse. Political upheavals such as in Egypt, natural disasters as observed in Thailand in 2011 and domestic economic issues in Brazil and India are among the many supply chain risks that must be taken into account.

Even so, demand for logistics services in emerging markets is outpacing that of developing markets. For example, the global contract logistics market grew at 3.4 percent from 2011 to 2012; however, for the same period, emerging markets grew at 9.4 percent. Perhaps not surprising, some of the biggest growth rates were noted in emerging countries within Asia and the Middle East at 10.8 percent and 10.6 percent, respectively.

Read Full Article

Emerging Logistics Markets Tapped by Study