Market Trends of freight and logistics Industry
The North American transportation and storage market increased by 18% YoY in 2022, boosted by rising demand for warehouse and distribution centers
- Asia Pacific is experiencing increased demand for transportation, especially in shipping, which handles a significant portion of global seaborne trade. This region boasts nine of the world's busiest container ports and accounts for more than 40% of global surface freight transport. By 2050, freight transport demand in the region is projected to triple. Meanwhile, Germany has become a leader in the transportation and warehousing sector, surpassing France and the United Kingdom, ranking third globally in imports and exports. To improve transportation infrastructure, the German government invested over EUR 12 billion (USD 12.81 billion) in federal highways and about USD 1.81 billion in waterways in 2022.
- Global foreign direct investment (FDI) flows in 2022 fell by 24%, totaling USD 1,286 billion, or a 5% decrease when excluding Luxembourg, compared to the previous year. The United States remained the top destination for FDI inflows, receiving USD 318 billion, followed by China with USD 180 billion, although at lower levels. Cross-border merger and acquisition (M&A) activity slowed down with fewer deals, while the outlook for greenfield investment remained positive.
- The transportation and storage sector in North America experienced a growth of 21% YoY in 2021 and 18% YoY in 2022 due to rising demand for warehouse and distribution centers for e-commerce. In 2022, the US Department of Transportation introduced the Port Infrastructure Development Program, allocating more than USD 703 million for 41 projects in 22 states to improve port capabilities, enhance supply chain reliability, and create job opportunities.
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For over a year, Russia's invasion of Ukraine disrupted global crude oil and petroleum product markets
- In 2022, the global average price of gasoline at the pump was USD 1.22 per liter, a 19% increase from the previous year, exceeding pre-COVID-19 levels. Following the 2021 rebound amid economic recovery, 2022 prices hiked following crude oil increase due to supply disruption risk amid war. Gasoline prices in Europe are the highest compared to other regions. Gasoline is particularly expensive in Iceland, Norway, Denmark, Greece, Finland, and the Netherlands at USD 7.6 per gallon.
- The Brent crude oil price rose significantly in the first half of 2022 but generally declined in the second half of the year. The Brent crude oil spot price averaged USD 100 per barrel in 2022. Total OPEC crude oil production fell from an average of 29.2 million b/d in Q3 2022 to 28.6 million b/d in Q4 2022. Oil prices have peaked since November 2022 as Russia and Saudi Arabia continue to cut 1.3 million barrels daily from their output, even as global demand rises to near-record levels.
- Diesel is produced from crude oil, so prices are closely linked to diesel prices. Diesel prices in the United States and globally increased rapidly in the spring of 2022 because of concerns about global diesel supply. Although crude oil prices declined in the second half of 2022, US diesel futures prices rose again in October 2022 to USD 3.95 per gallon due to seasonal demand and diesel supply concerns for Europe. Russia has been Europe's largest supplier of diesel. In 2023, diesel prices declined in Europe and the United States as Europe has been able to replace most of the diesel it would have imported from Russia with imports from other regions.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Global population is projected to rise to 9.7 billion by 2050, fueled by urbanization and longer lifespans
- Recovery of global GDP (nominal) since 2020, with maximum growth witnessed in the oil and gas, mining, and quarrying sector
- The global e-commerce sector experienced a slight growth of 0.78% YoY in 2022, led by fashion and electronics sub-segments
- Global export volumes are anticipated to surge over the forecast period (2023-2030) driven by fuel and agricultural products
- Rise in fuel costs due to Russia-Ukraine war and global truck driver shortages impacting the trucking industry operational costs
- High-income nations dominate the 2023 LPI rankings, with Singapore leading with a score of 4.3
- The global freight industry is growing rapidly owing to various investments and expansion schemes by country governments
- China, Korea, Singapore, Malaysia, and the United States are the global leaders in terms of maritime connectivity networks
- Global freight rates across all modes increased owing to the global oil impact of the Russia-Ukraine War
- European nations lead in overall rankings and road quality, US focuses on freight rail networks
- Manufacturing and retail and wholesale sectors drive the global economy on the back of huge investments and government initiatives
- Rise in global inflation due to economic restrictions and the Russia-Ukraine War
- The gross value added by the manufacturing sector registered a growth of over 8% YoY in 2022, led by the chemical and chemical products sub-sector
- Amid growing imports of fuel and agricultural products, global economies are looking to increase domestic resources by 2030
- Electric trucks are the future of the global trucking industry, with many countries aiming for net zero emission standards by 2050
- Europe emerged as the leading market for electric pickup trucks, with a demand of 118 thousand units in 2022
- Significant increases in fleet capacity and expansion initiatives are driving growth globally
- Asia Pacific ports are battling port congestion led by strikes and logistics supply chain disruptions
- China and the United States are major contributors to the global freight and logistics industry, with heavy production and export-import activities
