• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Contract Logistics 'Needs New Mindset', Report Suggests

Contract Logistics 'Needs New Mindset', Report Suggests

June 20, 2013
Transport Intelligence

For example, the Middle East grew at 5.7 percent, whilst the Asian contract logistics market grew at 6.0 percent due to an emphasis on intra-Asian trade. This contrasts with growth in North America, which was only 3.0 percent, and an even weaker 0.9-percent growth rate in Western Europe.

This gap in performance is set to widen with the outlook for emerging markets through 2016 remaining strong. Europe's 37-percent share of the market is likely to fall to just 31 percent in 2016, whilst Asia's share will increase by 5 percentage points to 36 percent over the same time scale. According to the report's lead author, Cathy Roberson, the changing market dynamics will require a new mindset from contract logistics providers, with the need to focus their strategy on these emerging markets.

"In the aftermath of the 2008 global recession, the contract logistics market must evolve once more. Whilst nobody can doubt China's enormous potential, a second tier of economies is developing, as manufacturers look to produce and source goods from a range of low-cost markets. Trade lanes are shifting away from the U.S. and Europe in favour of emerging markets such as Brazil, Russia, South Africa and the Middle East. Logistics providers must develop their service offerings and expand into these new geographic markets," said Roberson, senior analyst at Transport Intelligence.

However, penetrating the new emerging markets will not be straightforward. "When entering an emerging market, logistics providers have to overcome the challenges of developing new solutions, such as an e-commerce offering, while at the same time dealing with undeveloped infrastructure, bureaucracy, corruption, security and a volatile business environment. The rewards are obvious, but a thorough understanding of the risks is essential," Roberson said.

Source: Transport Intelligence

RELATED CONTENT

RELATED VIDEOS

Air Cargo Logistics Global Logistics Logistics Outsourcing Transportation & Distribution Transportation Management Technology Pharmaceutical/Biotech
KEYWORDS Air Cargo contract logistics industry Global Logistics Logistics logistics & supply chain logistics management Logistics Management: Third-Party Logistics Logistics Outsourcing logistics services manufacturing & contract logistics Pharmaceutical/Biotech Supply Chain Management Technology Transport Intelligence Transportation & Distribution Transportation Management
  • Related Articles

    'New Normal' for Supply Chain Industry is Slow Growth, State of Logistics Report Finds

    Contract Logistics Market Saw 5.4 Percent Growth Last Year

    Logistics Revenues Top Pre-recession Levels, But Profitability Lags, Report Says

  • Related Directories

    Kuebix

Transport Intelligence

Pessimistic Forecasts: Stifel Logistics Confidence Index Declines Further

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A TRUCK LEAVES A PORT DOCK LOADED WITH A CONTAINER

    C.H. Robinson Digs in Against Activist Investor Ancora

    Freight Forwarding/Customs Brokerage
  • A CONTAINER SHIP PLIES A SILVERY OCEAN

    CVC Nears Deal to Acquire Logistics Firm Scan Global

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Retailers – Quit Bellyaching and Differentiate Yourself on Returns

    Reverse Logistics
  • MANY COGS INTERACT TOGETHER, ONE PAINTED WITH THE FLAG OF MEXICOStock-natatravel-1261506189.jpg

    Mexico’s Industrial Hubs Grow as Part of Shift Toward Nearshoring

    Logistics

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing