Adapting to the new market trends will be key.
The global logistics industry, which reported 981 billion euro ($1301 billion) revenue in 2011, is expected to grow up to 3 per cent per year till 2020, according to Global Logistics Markets-Trend Analysis, report by Roland Berger Strategy Consultants and Barclays. The report said logistics companies need to adapt to new market trends that pose very challenging demands.
“The logistics industry is presented with new opportunities, such as the growing importance of intra-regional markets, the expansion of e-commerce and in providing specialized services to a range of industry sectors,” sited the report.
“The volatile market environment, the ever-stronger online market, the shift in markets towards Asia, and the growing demand for special transport services necessitate new corporate strategies and considerable investments on the part of logistics providers,” said Dirk Friebel, logistics expert at Roland Berger.
At present, China, Japan and India figure most prominently in the Asian contract logistics sector. However, alongside China, other emerging countries such as Indonesia, Thailand, Malaysia, the Philippines and Vietnam will grow markedly up to 2017 by more than 10 per cent per year.
Although Southeast Asia has emerged as a new logistics cluster, the local infrastructure has yet to attain western standards for quality, the report said.
“Apart from Singapore and Hong Kong, the region urgently needs investment to improve its transport infrastructure,” said Alexander Doll, Co-CEO of Barclays Germany.