5 Reasons Why to Invest in Global Logistics.

Everything there is to know about global logistic trends, as well as, how and why to get involved.

Logistics are a key part of any successful business. Logistics are the science of distributing your products to your desired destination. The global logistics market is becoming more vast and complex each day. From 2018 to 2022, the market size doubled and will expand 30% more by 2027. If there is a time to implement a credible and accessible logistics process, it is now. 

The pressure to distribute goods globally was the biggest it has ever been at the end of 2021. Consumers does not want to want or be delivered less goods, which simply means that the opportunities for the logistics distributions are  more than relevant nowadays. 

There are few countries that have mastered logistics, some that are working on development, and some that do not have the resources to compete globally. An example of an emerging logistics market is China, according to statistics taken in 2022. As most know, China is one of the largest mass producers, of all types of products, in the world yet has no way to ensure a quick, simple, or reliable logistics process, which has caused many countries to re-evaluate their exports. Although this may be the case, China still remains the leading merchandising export in 2021 followed by the United States. 

Industry costs and production costs are constantly changing based on economic indicators, environmental issues, or social shifts in any country which leaves many companies unsure of their budget for the year. As shown in research by statistica, industry costs and global export value of trade fluctuate with inflation, which has been increasingly high since COVID-19 and the Ukrainian/Russian war. With that being said, methods of production and distribution are adapting to sustain the current economic pressures. 

There are many different ways to get a parcel from one place to the next such as airplane, train, or boat. The global freight market is projected at over $285.15 (in billions) by 2031, majority of this market being Asian-Pacific and European regions. Most importantly, air freight is becoming more popular with the industrialization of developing countries. Most of these being ‘scheduled freight’ that ensures delivery of a specific date rather than rolling arrivals. 

Scheduled freight is only possible with contractual partnerships, which are increasing and the highest they’re ever been in 2021. On the other hand, e-commerce is a main aspect of contractual logistics because it allows for business transactions without the trouble of in-person meetings. The e-commerce market is also rapidly growing and will surpass global freight revenue by billions in 2026. 

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