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 10, 2013 - SCMR Editorial

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

Almost all companies today are aware of their labor or material costs... but what about energy consumption? It all comes down to having the energy data needed to determine what actions you must take to improve. The payoff is worth it, as insight into energy data allows you to make more valuable, relevant operating decisions.

With lower energy prices sparking domestic economic gains, coupled with solid manufacturing and industrial production activity, improving jobs numbers, and a GDP number that shows progress, there is, or there should be, much to be enthused about when it comes to the economy and the economic recovery, which has been raised and discussed and dissected from basically every angle possible, it seems. But that enthusiasm regarding the economy needs to be tempered, because big headline themes seldom tell the full story at all really.

The annualized turnover rate for large truckload carriers in the third quarter rose one percentage point to 97 percent, according to the ATA.

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Article Topics

News · Global · Supply Chain · Logistics · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA