The contract logistics market saw double digit growth in 2005, boosted by expansion in fast emerging markets in Asia Pacific and the strong economy in the US.
The latest report by Transport Intelligence, “Global Contract Logistics 2006” says the global contract logistics market grew by 10.3 per cent in 2005 to 117bn euros. All regions contributed to the growth, which confounded many expectations in the industry.
The fastest growing market was China which rose by 31 per cent as out-sourcing and increased volumes buoyed this nascent market. However, even more established markets, such as the United States, also experienced exceptional rates of development driven by the strong economy and distribution of imported consumer goods.
Europe, which has been affected by economic slowdown in the past few years, had the weakest expansion but still managed to grow in the high single digits. Markets, such as Germany, benefited from out-sourcing such as the major deal agreed between DHL and retailer KarstadtQuelle which ran into many hundreds of millions of euros.
John Manners-Bell, TI’s chief executive said there was little sign that the impact of the key drivers of the market would diminish and this will result in further opportunities for logistics service providers.
“Added to this, Japan’s economy looks set to re-awaken as it becomes increasingly liberalised and growth in the Indian market will also become an important factor. Consequently we forecast that the global market will grow at a compound annual Growth rate of almost 14 per cent between 2005 and 2009.”