Business, Freight News, Logistics

Has the freight industry turned the corner?

[ November 16, 2012   //   Chris ]

Logistics service providers and freight forwarders are optimistic about 2013, according to a survey by logistics research firm Transport Intelligence and software provider Kewill.

Four-fifths of the 484 international businesses surveyed reported slight business expansion over the past two years but crucially, over three quarters expect this to continue in 2013.
Growth was throughout the world and across firms of differing sizes, although it was lower in Europe compared with North Africa, Middle East and Africa and, especially, North and Latin America. Here, freight forwarders and 4PLs had the highest growth. The Euro crisis has had an impact on European logistics firms, the study concludes.
Few logistics companies intend to pursue growth through acquisitions alone; most are planning organic growth, or a mix of the two in some cases, but for forwarders and 3PLs the figure is higher, at 30%, reflecting their sector’s stronger cash positions say the survey’s authors.

Head of consultancy at Transport Intelligence, Joel Ray, said, things were “looking up” for the industry although Kewill’s solution manager for global trade and logistics, Gerry Daalhuisen, said mid-sized organisations with 251 to 500 employees that are most likely to have grown in the past two years and are most likely to grow in the coming year. “Companies who re-invested in their business and focused on expansion were the ones who reaped the rewards. Investing in technology is no longer an option, it is imperative in doing business efficiently and thriving in today’s tough market place.”

Tags: Kewill