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The global contract logistics market is expected to grow by 4.2% this year, according to Ti Insight
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This is after the market advanced by 3.5% in real terms in 2023, and by 3% in 2022
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The results show a return to a more normalized, pre-pandemic state of demand and growth driven by emerging economies, Ti said
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The market in the Asia Pacific region rose 7.5% year-on-year in 2023
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This year it is seen to again lead the growth at 7.1% year-on-year
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DHL Supply Chain remains the global market leader in contract logistics, with almost double the revenues of its nearest rival GXO Logistics
The global contract logistics market is expected to grow by 4.2% this year, according to the latest report of Ti Insight.
This is after the market increased by 3.5% in real terms in 2023, and by 3% in 2022. The results show a return to a more normalized, pre-pandemic state of demand and growth driven by emerging economies, Ti said in its latest Global Contract Logistics 2024 Report.
“In contrast to other logistics segments, the global contract logistics market largely remains resilient against economic headwinds,” Ti senior editor Paul Chapman said in a statement.
“We are also seeing continued consolidation in the market as companies seek to secure market position through acquisition,” Chapman added.
In 2023, the Asia Pacific region saw an increase of 7.5% year-on-year, versus North America and Europe which advanced by 1.6% and 0.2% y-o-y, respectively.
Asia Pacific is seen to again lead the growth in 2024 at 7.1% y-o-y.
Growth is also expected to pick up in more advanced economies in 2024 when compared to 2023, although Europe and North America are seen to continue displaying growth rates below the global average into 2024.
Ti’s Warehousing Cost Index also details that warehouse costs have been rising steadily since the first quarter of 2022, though year-on-year cost growth has slowed substantially into the fourth quarter of 2023, particularly in Western economies.
Looking forward, Ti said warehousing costs are likely to continue rising and remain elevated in comparison with historic norms, moreso in Western economies than in North-East Asia.
According to Ti’s Contract Logistics Procurement Survey, most companies outsource quite a large proportion of their supply chain, but maintain some form of internal supply chain management, most likely as either a control element, or to act as a benchmark of internal performance versus external performance. Just shy of 60% of respondents stated that the proportion that they outsource will increase next year.
DHL Supply Chain continued to maintain its place as the global market leader in contract logistics, with almost double the revenues of its nearest rival GXO Logistics, Inc.
Ti noted that DHL is still by far the most “global” of the leading providers. The company maintains the leading position in North America and Europe and is estimated to be the third largest contract logistics provider in Asia Pacific.
GXO also has a significant presence in the North America (4th) and European (2nd) market, thanks in part to its recent acquisitions such as Clipper Logistics.
The Global Contract Logistics 2024 Report is presented by industry researchers, analysts, and utilizing data from Ti’s Global Supply Chain Intelligence knowledge portal, a data powerhouse with over 1 million pieces of data and analysis.
