Transport Intelligence

Kewill worked with Transport Intelligence to examine the state of the global freight forwarding industry, and produced a report that provides an in-depth look at the issues confronting forwarders across the globe – and offers helpful suggestions on what they need to do to remain competitive.

The Agility Emerging Markets Logistics Index uses three metrics to assess and rank 45 emerging markets countries. Size and Growth Attractiveness make up 50% of overall Index score. Compatibility and Connectedness each account for 25% of overall score.​

Saudi Arabia jumped to second place in this year’s Agility Emerging Markets Index, ahead of established BRIC nations Brazil, Russia and India, as they struggled with continuing poor infrastructure, corruption and conflict.

Over the past five years emerging markets have maintained their “growth dynamic,” observes John Manners-Bell, CEO, of the London-based think tank Transport Intelligence (Ti).

New distribution center in Beijing adds to Chengdu and Shanghai facilities to reach B2B and B2C customers.

Since its inception in 2009, the Index has tracked the rise of the emerging markets, firstly in the wake of the economic downturn and then throughout a period of global recovery. Throughout this period the sector has maintained its growth dynamic, although it certainly has not been immune from economic and political upheavals.

With the global economy seeming to be in better shape than for many years, it would seem a good point at which to examine prospects for the global logistics industry. Economics and logistics output are, of course, inextricably linked.

Globalization has been a major industrial trend in which low labour costs have driven companies to set up their production sites in low cost countries, thus creating growth of cargo shipping between continents. The balance between transportation and labour cost may change. A new trend in the future may be globalization, where the global business is supported by local 3D production that optimizes the business through speed, quality or personalization.

Walgreen, the largest drug retailing chain in the US, Alliance Boots and AmerisourceBergen signed a $400bn 10-year agreement that will create what Forbes magazine coined the “Earth’s Drugstore”. Not only will the agreement create “Earth’s Drugstore” but it appears it is set to create one of the largest and most influential global supply chains.

Last mile delivery location options, the ability to manage global fulfillment via the cloud, the possibility of 24/7 delivery services and perhaps the end of the middleman as businesses gain more control over transportation and the sale of equipment are all included in a new mindset as more and more logistics startups are formed in order to meet needs that are not being met by traditional providers.

New entrants in the market will rely heavily on a mix of hub-and-spoke network configurations as well as interlining between long-distance shipping routes using transshipments through the Caribbean Triangle.

The Agility Emerging Markets Logistics Index looks at the world’s most dynamic economies and the forces powering them. It ranks 45 major emerging markets and identifies the attributes that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution property companies.