State of the Industry - Logistics

Table of Contents

• CATALYST
• SUMMARY

• The global economy is on a knife-edge after the effects of the credit crunch
  • Europe: Jittery economies due to America link
  • US: Recession or slowdown?
  • APAC: Still going strong, other than Japan
  • Middle East: A rising force
  • Global economic prospects on a knife-edge
• The full effect of the slowdown has yet to hit the logistics industry, as 2007 was a good year
  • Logistics revenues still strong, with DHL-Exel still number one global player
  • Profitability has also increased for the majority of players, but operating margins remain slim
• Aside from the economy, several trends will have a significant impact on the logistics industry in the coming year
  • Collaboration would benefit both shippers and clients
  • RFID would improve efficiency in the long-run, but who is willing to risk the short-term financial investment?
  • China will still dominate the industry, but other countries will also enjoy more prominent roles
  • Environmental issues have risen up the agenda for both logistics companies and their clients, requiring the former to take action
  • Main transportation modes will also face their own individual challenges
  • Although consolidation in the market has continued, it still has a way to go

• There are several moves that logistics companies can make to improve future potential earnings.

• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

• Table 1: Company Revenue H1 2007 vs. H1 2006 ($m)
• Table 2: Company Revenue Q1-Q3 2007 vs. Q1-Q3 2006 ($m)
• Table 3: Company Profitability Q1-Q3 2007 vs. Q1-Q3 2006 ($m)
• Table 4: Operating Margin Q1-Q3 2007 vs. Q1-Q3 2006

• Figure 1: Average Oil Price 1995-2007 (USD)
• Figure 2: Company Revenues Q1-Q3 2007 vs. Q1-Q3 2006 ($m)
• Figure 3: Operating Margin Q1-Q3 2007 vs. Q1-Q3 2006
• Figure 4: Consolidation in the Logistics Market