The express parcels industry is coming under pressure as never before. Fundamental changes in the market structure, caused by e-retailing, technological disruption and macro-economic upheaval, have created opportunities and challenges for express companies in equal measure.
A combination of the erratic global air and sea freight market, a growing shift in geographic focus towards the regional and the application of advanced technology and data analysis to the market is bringing the fate of the traditional freight forwarding model into question.
The consumer packaged goods sector is a giant with global sales exceeding $550bn. The markets that make up this global sector are diverse in character and research for Ti's latest report, Global CPG Logistics 2015, has identified the key differences between them.
The global contract logistics market grew by 5.4 percent in 2014, to reach 177.6bn euro ($199bn), according to a report from Transport Intelligence. If prices and exchange rates were held constant at 2013 levels (real growth), then the market would have expanded by 4.4 percent. Overall, contract logistics growth of 5.4 percent compares favourably to growth of 2.8 percent in 2013.
The present business models being employed by e-retailers and their shipping partners are becoming increasingly unsustainable, according to a report from Transport Intelligence, a research and analysis firm focusing on the global logistics industry.
Still growing, with Europe forecast to grow by 6 percent and North America by 5 percent, automotive logistics offers growth prospects but only for those logistics service providers who can exploit change. This is one of the main conclusions of the latest report from Transport Intelligence, "Global Automotive Logistics 2014".
Uncertainty in the global market continues as the latest Stifel Logistics Confidence Index indicates a dip of 0.4 points in the overall measurement to 55.7. While the present situation remained positive, gaining 1.2 points from July to 53.5, the expected situation for the next six months stumbled 2.0 points to 57.9. This decline was particularly noticeable within airfreight expectations, which declined 3.3 points to 54.7. The sea freight expectation component declined 0.7 points to 61.0.
Declining in value by 3.3 percent from 2012, the freight forwarding market is facing major challenges as it fights to stay viable in a changing global environment. This is one of the main conclusions of the latest report from Transport Intelligence, Global Freight Forwarding 2014.
The Stifel Logistics Confidence Index for July appears to mirror an uncertain economic environment. Since February of this year, the overall Index has increased one month and then declined the next reaching its high so far this year in May at 57.9. For the current month, the index is up 0.9 points over June to 56.1.
A lack of certainty appears to be the case within the freight forwarding market as momentum fails to take hold. In the latest findings, the Stifel Logistics Confidence Index slipped 2.7 points to 55.2. While still above the important 50-level, too many questions remain unanswered – will a strike be averted at the U.S. West Coast ports, what will happen within the sea freight market now that P3 alliance has collapsed? Is economic growth really slowing?