The report below gives a good overview of the Summer 2023 M&A activity in the Transport, Logistics and Supply Chain Industry Sector. The global transportation market grew from $7.2 trillion in 2022 to $8.0 trillion in 2023 at a CAGR of 11.1% as per the Business Research Company. The market is expected to grow to $10.6 trillion in 2027 at a CAGR of 7.2%. The global logistics market attained a value of $10.1 trillion in 2022. Aided by the rapid growth of e-commerce and advancements in supply chain management, the market is projected to further grow at a CAGR of 5.6% between 2023 and 2028 to reach a value of $14.1 trillion by 2028. According to ING, the transport and logistics sector is projected to grow by 4% in 2023 and 3% in 2024. While consumer goods logistics face a correction, the aviation industry is benefiting from pent-up travel demand, and public transport is becoming busier again. Container trade, which surged during the pandemic, experienced setbacks in late 2022 due to declining consumer spending and an economic slowdown, leading to piled-up stocks that required adjustment in Q2 2023. This created a reverse bullwhip effect, resulting in a slowdown across supply chains, particularly in consumer products. US logistics and European container throughput were significantly affected, and sea freight players faced plummeting container rates with up to an 80% decrease in the China-Europe trade in Q1 2023. Despite the challenges, freight capacity and rates have stabilized, with rates falling below pre-pandemic levels. Diesel fuel prices remain high but are starting to decrease due to lower demand and economic uncertainty. Lead times seem to vary across the market, with some improving and others extending, but overall volatility has improved. With investments in EVs, manufacturers in the industry are estimated to contribute towards the growth of the electric truck industry to attain a CAGR of 26.4% from 2021-2030.
Posted by Peter Heydenrych.