Total third-party logistics revenues are expected to jump from $802.2 billion in 2016 to over $1.1 trillion in 2022, according to a recent report from consulting firm Armstrong & Associates.
Total third-party logistics revenues, along with global logistics costs, have increased significantly over the past few years and are expected to continue to grow in the near term, according to a new report from consulting firm Armstrong & Associates.
The report, titled, “Global and Regional Infrastructure, Logistics Costs, and Third-Party Logistics Market Trends and Analysis,” shows that total 3PL revenues stood at $680.7 billion in 2010, $802.2 billion in 2016, and are on track to exceed $1.1 trillion in 2022.
Meanwhile, global logistics costs stood at $7.1 trillion in 2010, $8.2 trillion in 2016, and are on track to exceed $11.2 trillion in 2022.
Broken down by company, the top five global 3PLs based on gross logistics revenues in 2016 were DHL Supply Chain & Global Forwarding, followed by Kuehne + Nagel, Nippon Express, DB Schenker, and C.H. Robinson.
For a single country, logistics costs in Greater China (including Hong Kong, Taiwan and Macao) are the highest in the world at $1.7 trillion, and are equivalent to over half of the Asia Pacific region’s logistics costs. The Asia Pacific region overall is the largest logistics market, accounting for 39 percent of total global logistics costs and 38 percent of total global third-party logistics revenues.
Looking ahead, Greater China and the Asia Pacific region (excluding Japan) are expected to be the fastest growing regions in terms of logistics costs from 2016 to 2022, primarily due to strong growth in private domestic consumption of general merchandise. “This growth reflects a number of factors, including strong economic growth, encouraging demographics, sustained urbanization, and growth of the middle class,” the report said.
Report: 3PL revenues on track to exceed $1.1t in 2022
