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 ·

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

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 [email protected]

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!

Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....