Papers

Supply Chain Disruptors

In this report, we analyse how three distinct categories of operators working across the global supply chain (e-commerce companies, container shippers and freight forwarders) are increasingly competing (or collaborating) with each other as industry boundaries are redefined. By Bruno Berretta

July 2, 2017

Global Logistics: A $1 Trillion Business
At present, the total value of the global logistics and transportation industry is believed to be worth approximately $1 trillion annually.

Parcel delivery – benefiting directly from e-commerce - is one of the fastest growing segments of this industry.

Global B2C e-commerce sales have been growing by 20% annually over the last few years, reaching $2.6 trillion in 2016, with Europe accounting for €600 billion.

If e-commerce keeps growing at the current rate, it could reach $5.4 trillion globally by 2020, more than the UK and France’s GDP combined.

There are obvious positive growth impacts for the logistics industry as a result of the growth in e-commerce, and e-retailing in particular.

In turn, this is driving the logistics real estate market, creating an ever growing need for warehousing space/logistics services for the increasing number of parcels.

To date, the task of parcel management has been mostly the prerogative of couriers/postal companies, but not anymore. Companies outside the logistics sector, including e-tailers, have set their sights on this business.

Additionally, while e-commerce booms, the container shipping industry continues to grapple with overcapacity and is in a deep downturn, with game-changing implications.

Although container shipping rates have improved, it appears this part of our industry faces challenging times.

Last but not least, technology is affecting the middlemen in the supply chain (freight forwarders) and they are also under pressure to adapt.

In this report, we examine the activity of some key players within each of these three elements of the supply-chain, highlighting how the dynamics of the industry are changing.

Three Core Elements of the Supply Chain


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