Subscribe to our free, weekly email newsletter!


Africa holds new promise for U.S. shippers, says study

Rates of logistics outsourcing to specialist contract logistics service providers are at some the lowest levels in the world, but the market is evolving and the region includes many countries with highly varying characteristics
By Patrick Burnson, Executive Editor
March 27, 2013

Analytiqa, a consultancy and research firm based in Hertforshire, England, has published a study that suggests greater opportunities for U.S. shippers seeking to penetrate the vast African marketplace.

According to the whitepaper, “Africa Logistics,” third party logistics providers must “keep cool” to maximize growth in the arena of temperature-controlled shipments.

“While we forecast significant growth in logistics spend across on the African continent, further development of infrastructure in many countries is essential,” says Analytiqa Research Director, Mark O’Bornick.  “If current plans to invest in infrastructure are realized, demand for logistics services will boom based on meeting rising consumer demands.”

Researchers forecast that spending on logistics services by manufacturers and retailers, both in-house and outsourced, is set to increase by almost $28.8 billion by 2016 as the size of the outsourced logistics market grows by 38.4%.

“U.S. and other global 3PLs are set to take advantage of new growth opportunities in the African region, but they must understand new markets well and acknowledge the operational challenges that will inevitably arise,” says O’Bornick.

Rates of logistics outsourcing to specialist contract logistics service providers are at some the lowest levels in the world, but the market is evolving and the region includes many countries with highly varying characteristics.

Analytiqa’s study of eight markets across the region show that South Africa is the most developed contract logistics market, valued at around $3.0 billion, though countries which currently have smaller, less developed markets, such as Kenya Nigeria and Egypt, will post double digit growth through until 2016.

At a macro level, growth in logistics markets will be driven by the performance of individual country economies, levels of government spending, and consumer confidence within those economies.

“The changing dynamics of globalization will also feature prominently, as the many African countries are looking to their neighbors as new markets and intra-African trade is expanding rapidly,” adds O’Bornick.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

During this webcast attendees will learn about technology that is delivering real-time tracking on freight and putting an end to the all too common question of “Where’s My Brokered Load?”. Whether you’re a broker, 3PL, shipper, or carrier, find out how you can gain automated, TMS-integrated visibility on all your shipments.

FedEx recently took another step in its plans to acquire Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which it announced in early April. The company said it has “submitted the required filing to the European Commission to obtain regulatory clearance in connection with the intended recommended public cash offer all issued and outstanding ordinary shares in the capital of TNT Express.”

The American Trucking Associations last week praised Senator Deb Fischer (R-Neb.) for her bill that takes some positive steps towards alleviating the current environment regarding the truck driver shortage.

Global third-party logistics (3PL) services provider Kuehne+Nagel (KN) said this week it has entered into an agreement to acquire ReTrans Inc., a Memphis-based provider of multimodal transportation services.

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA