Transport and Logistics

This is a fast-changing time for International Business. Trends toward globalization, integrated logistics and development of ICT (information and communication technologies) are reshaping methods of global trade and, consequently, physical trade flows.

Although European consumption is slowing and transport costs rising, the transport and logistics sector nonetheless boasts an encouraging outlook: the rapid growth of e-commerce is driving up demand for transport; less than one-third of the European market is outsourced, while for major corporations, logistics expertise is a key factor in their competitiveness.

The sector is currently influenced by major dynamics:

• Consolidation in an effort to attain a global scale. The objective is to satisfy a supply chain largely located in Asia, with distribution geared toward Western Europe and North America, while expanding in growing Asian markets (India and China)
• Development of higher-end services, seen as a differentiating factor. Logistics service providers are expanding their range across all businesses both upstream and downstream in the logistics transport chain
• Development of partnerships: when they cannot expand their own fleet, a growing number of players are entering into partnerships in order to take up a position in transport organization and flow management
• Regulatory pressure geared toward reducing greenhouse gas emissions and controlling urban pollution.