Contract logistics activity slowed last year during the downturn and players are now turning to Asia to help lift bottom lines, reports Correspondent Phil Hastings.
International contract logistics providers are looking at emerging markets in the Asia-Pacific region for new business development opportunities to make up for some of their revenue losses in recession-hit Europe and North America.
That is one of the trends highlighted in a report on "Global Contract Logistics Through the Economic Downturn'' recently published by Datamonitor, a UK-based multinational provider of business information.
Talking to Cargonews Asia about the report's findings, Sarah Chambers, a UK-based senior analyst, express and logistics, with Datamonitor, said the report confirmed that with the global economic downturn, contract logistics activity around the world had slowed in 2009 compared with the robust performance of previous years. The North American market had declined by just over four percent and the European sector by nearly seven percent. However, the Asia-Pacific region had fared better, experiencing only a 1.3 percent reduction.
"Europe and North America have the largest share in the global contract logistics market but as the Asia-Pacific market is still maturing, a better economic performance in that region is expected," she said. "Other emerging markets in Latin America, the Middle East and Africa will also be sources of growth for global 3PLs (third party logistics providers) expanding their coverage and local players alike."
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