London, UK: A new report from consultancy Transport Intelligence has revealed that, in real terms, global transport and logistics revenues have hardly risen from levels seen in 2007.
According to the report, called Global Transport & Logistics Sector Leaders 2011, revenues recovered 15% last year to $197.8bn (£123bn). However this did not make up for the dramatic fall in 2009.
The new report, which includes 19 global companies including DHL, Wincanton and Kuehne plus Nagel, also reveals that profit margins are under 5% on average.
TI senior analyst David Bagshaw suggests that margins like these are likely to be inadequate for a logistics provider with its own fleet and asset base to sustain. “The industry needs to increase its margins in 2011 and beyond,” says Bagshaw. “2010 has seen a good recovery for most of the industry, but it still has some way to go.” The report records that haulage, more so than any other part of the transport sector, suffered a major decline in profitability in the recent recession and is yet to truly recover.
