Subscribe to our free, weekly email newsletter!


Automotive logistics may be on the rebound

According to Transport Intelligence, the reversal of fortune may mean a wealth of opportunities for logistics service providers on a global scale.
By Patrick Burnson, Executive Editor
January 11, 2013

While just a few years ago, the global automotive logistics sector was regarded as moribund at best, a new report suggest that demand from emerging markets are changing all of that.

According to Transport Intelligence (Ti) – a London-based think tank – the reversal of fortune may mean a wealth of opportunities for logistics service providers on a global scale.

“The automotive world looks like it is evolving into one dominated by a few large global Vehicle Manufacturers with operations in markets such as China, Brazil, Russia, India and elsewhere integrated into supply chains heavily rooted in North America, Western Europe and Japan,” said Thomas Cullen, Senior Analyst at Ti and author of Global Automotive Logistics 2013.

Cullen added that providing the logistics systems to support this structure will be the main challenge and opportunity for automotive logistics service providers from now on.”

In its new report Global Automotive Logistics 2013,  analysts note that following the global economic crisis of 2009, the automotive sector has recovered dramatically, surpassing the levels of demand witnessed before the crisis. The market is now worth an estimated 57 billion euros annually, rejuvenated by a surge in demand for vehicles in developing markets, in particular China, as well growth in demand such as in the North American markets.

The continued increase in demand in developing countries has resulted in structural changes in the market and created significant opportunities for logistics providers. For example, the explosive growth of vehicle sales in China has also led to a rapid increase in production in the country by global manufacturers.

Rosemary Coates, president of Blue Silk Consulting, and a regular SCMR blogger, has noted that this represents a significant opportunity for global logistics providers operating in the region as manufacturers demand Western standards of logistics service levels.

Ti said It is anticipated that China’s automotive logistics sector will grow by 10% per annum until 2014.

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

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Intermodal volume was up 8.1 percent annually at 280,016 containers and trailers. This outpaced the week ending April 11 at 270,463 and the week ending April 4 at 271,127. AAR said this tally marks the second highest weekly output it has ever recorded as well as the first time container and trailer traffic was higher than carloads for a one-week period.

Ocean cargo carrier service reliability across the three core East-West trades hit a five-month peak in March with an aggregate on-time performance of 64 percent, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

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