Total Logistics Report 2023
With the global logistics industry at a crucial point in its development, Ti’s new market reportoffers a concise, easy to understand view of the logistics and supply chain industry.
Analysis of the forces andkey trends shaping theglobal logistics market.
Examination of the impactof industry consolidation,fragmentation and M&Aactivity on the global logisticsmarket.
Total Logistics market sizingfor 2022, and forecasts for2027. Split by region andlogistics market.
Examination of ‘super sectorcyclicality’ and mitigatingbusiness risks.
The development of supplychain technologies and theirimpact on the market.
Analysis of ethical andsustainable supply chainstrategies, and implicationson the market.
THE REPORT CONTAINS:
KEY FINDINGS:
1. Re-shoring and near-shoring has createdthe need for a much more nuanced and agileapproach to supply chain management.
2. The US cannot continue to be relied on todeliver demand to the rest of the world. It islikely that many presently surplus countries willexperience a shift towards a more balancedtrade position.
3. Increasing sophistication of supply chains isa considerable opportunity for LSPs.
4. The total global logistics market size in 2022amounted to €7,894,319.9m.
5. Asia Pacific’s logistics spend accounted for44.4% of total global logistics spend in 2022.
6. Logistics companies need to be very sensitiveto the risks which exposure to specific verticalsectors present.
7. The total global logistics market size in 2022amounted to €7,894,319.9m.
8. The emergence of emerging market economicpowers will increase supply chain costs andprovide headwinds for intercontinentalmovements of goods.
- 1. Introduction: The Global Logistics Market 7
- 2. Five Key Trends and Their Impact on Global Logistics Markets 8
- 2.1 THE RISE OF EMERGING MARKETS AND THEIR IMPACT ON GLOBAL TRADE 8
- 2.1.1 Saudi Arabia’s big plans 10
- 2.1.2 Fears over China’s power 10
- 2.1.3 China’s influence reaches Europe 12
- 2.1.4 Conclusion 12
- 2.2 WHAT DO CHANGING FISCAL AND ECONOMIC DYNAMICS MEAN FOR THE GLOBAL SUPPLY CHAIN AND LOGISTICS INDUSTRY? 13
- 2.3 SUSTAINABILITY – WHAT ARE THE COSTS AND RISKS OF ENVIRONMENTAL POLICIES ON SUPPLY CHAINS AT A GLOBAL, NATIONAL AND LOCAL LEVEL? 15
- 2.3.1 Precautionism: the impact of the CBAM 15
- 2.3.2 Increasing shipping costs 16
- 2.3.3 Consequences of the Inflation Reduction Act 16
- 2.3.4 Summary 16
- 2.4 M&A – CONTINUED CONSOLIDATION IN THE LOGISTICS INDUSTRY 18
- 2.5 RE-SHORING – THE IMPACT OF ECONOMIC AND POLITICAL RISK 20
- 2.5.1 Advantage Mexico? 20
- 2.5.2 Conclusion 21
- 3. What is shaping the global logistics market? 22
- 3.1 THE MODERN GLOBAL LOGISTICS INDUSTRY 22
- 3.2 TRADE AND GLOBALISATION 23
- 3.3 GLOBAL TRADE RESTRUCTURING 24
- 3.4 WORLD TRADE GROWTH 26
- 3.5 GLOBAL TO REGIONAL TRADE NETWORKS 27
- 3.6 THE IMPORTANCE OF MEGACITIES ON SUPPLY CHAINS 28
- 3.7 JUST-IN-CASE MANUFACTURING 29
- 3.8 MODERN SUPPLY CHAIN MANAGEMENT PRACTICE 30
- 3.8.1 The impact of supply chain management practice on logistics
- 3.9 CENTRALISATION OF INVENTORY 32
- 3.10 OUTSOURCING LOGISTICS 33
- 3.11 EVOLUTION TOWARDS VALUE-ADDING SERVICES 34
- 3.12 GLOBAL COVID-19 IMPACT 35
- 4. An Industry in transformation consolidation 36
- 4.1 CONSOLIDATION AND FRAGMENTATION IN THE LOGISTICS INDUSTRY 36
- 4.2 KEY INDUSTRY TRENDS 37
- 4.2.1 The push for globalisation 37
- 4.2.2 Liberalisation of markets 37
- 4.2.3 Product differentiation 37
- 4.2.4 Supplier rationalisation 37
- 4.2.5 Digitalisation 37
- 4.3 OPTIONS FOR GROWTH 38
- 4.3.1 Organic growth 38
- 4.3.2 Alliances 38
- 4.3.3 Joint ventures 38
- 4.3.4 ‘Piggybacking’ 38
- 4.4 ACQUISITION STRATEGIES 39
- 4.4.1. ‘Blockbuster’ deals 39
- 4.4.2 Evolution strategies 39
- 4.5 THE EMERGENCE OF THE ‘MEGA-CARRIER’ 40
- 4.6 THE FUTURE OF THE GLOBAL LOGISTICS INDUSTRY 41
- 5. Total Logistics Market Sizing 42
- 5.1 GLOBAL LOGISTICS TOTAL MARKET SIZE 2022 42
- 5.2 TOTAL LOGISTICS MARKET SIZE BY REGION 44
- 5.2.1 Asia Pacific 44
- 5.2.2 Europe 45
- 5.2.3 North America 48
- 5.3 FORECASTS AND 2022-2027 CAGR 52
- 5.3.1 Global Contract Logistics 52
- 5.3.2 Global Express Market 52
- 5.3.3 Global Freight forwarding 53
- 5.3.4 European Road Freight
- 6. ‘Super Sector’ Cyclicality: Mitigating Logistics Business Risks 56
- 6.1 MACRO TRENDS AND LOGISTICS OUTPUT 56
- 6.2 ‘SUPER SECTORS’ 58
- 6.3 THE DEFENSIVE ‘SUPER SECTOR’ EXAMPLE: FOOD 61
- 6.4 CYCLICAL ‘SUPER SECTOR’ EXAMPLE: CHEMICALS 63
- 6.5 IMPACT ON FINANCIAL PERFORMANCE: TRADING DOWN IN RECESSIONS 65
- 6.6 SHOULD LOGISTICS COMPANIES DIVERSIFY THEIR SECTORAL EXPOSURE? 67
- 6.7 CONCLUSION 70
- 7. Supply chain technologies 71
- 7.1 INCREASING SUPPLY CHAIN COMPLEXITY 71
- 7.2 WHAT IS SUPPLY CHAIN MANAGEMENT SOFTWARE? 72
- 7.3 SUPPLY CHAIN EXECUTION SYSTEMS 74
- 7.3.1 Transport Management Systems (TMSs 74
- 7.3.2 Warehouse Management Systems (WMSs) 74
- 7.3.3 International transport management systems (ITMS) 75
- 7.3.4 Freight exchanges 76
- 8. Risks in global supply chain 78
- 8.1 REBALANCING ‘EXTERNAL’ AND ‘INTERNAL’ RISKS 78
- 8.2 QUANTIFYING SUPPLY CHAIN RISK 81
- 8.3 TYPES OF SUPPLY CHAIN RISK 82
- 8.4 EXTERNAL THREATS TO SUPPLY CHAINS 83
- 8.4.1 Environmental 83
- 8.4.2 Geopolitical 83
- 8.4.3 Economic 83
- 8.4.4 Technological 83
- 8.4.5 Health 83
- 8.5 UNKNOWN UNKNOWNS… 84
- 8.6 SECTOR RESILIENCE TO THREATS 85
- 9. Ethical and sustainable supply chain strategies
- 9.1 PROFITS, PLANET AND PEOPLE – THE ‘TRIPLE’ ADVANTAGE 86
- 9.2 ENVIRONMENTAL ISSUES IN SUPPLY CHAIN AND LOGISTICS 88
- 9.3 GOVERNMENT POLICY AND TRANSPORT EMISSIONS 89
- 9.3.1 Road freight 90
- 9.3.2 Air cargo 91
- 9.3.3 Rail and Intermodal 91
- 9.3.4 Shipping 92
- 9.3.5 Warehousing 93
- 9.4 ETHICAL SUPPLY CHAINS 95
- 9.4.1 Upstream supply chain issues 95
- 9.4.2 Downstream supply chain issues 95
- 9.4.3 End-of-life reverse logistics 96
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