Global contract logistics sees double digit growth

The global contract logistics market grew by just under 10 per cent last year according to the latest report from UKbased Transport Intelligence. The Global Contract Logistics 2007 report said the market was driven by growth in the Asia Pacific region, which overtook North America for the first time to become the world’s second largest […]


The global contract logistics market grew by just under 10 per cent last year according to the latest report from UKbased Transport Intelligence.

The Global Contract Logistics 2007 report said the market was driven by growth in the Asia Pacific region, which overtook North America for the first time to become the world’s second largest market, while Europe, the most mature market, experienced solid if unspectacular growth.

The regional growth rates disguised a huge national disparity in market development, the report said, adding that in Europe, Russia and Turkey led the way. "In Asia Pacific, China, India and South Korea experienced the highest levels of growth, in contrast with Japan, where economic stagnation held back the industry."

"In North America, the Mexican contract logistics sector advanced by double digits helped by the trend towards ‘nearsourcing’ by US manufacturers and retailers. Its future prospects will be highly influenced by the strength or weakness of the US economy," the report said. The Middle Eastern market is also proving to be buoyant due to the region’s development as a major transport hub, investment in oil and construction projects and the growth of consumer markets. Latin America, however, is failing to take off in the way many analysts predicted, according to the report.