FEATURE: LOGISTICS, FREIGHT & TRANSPORTATION
Understanding the value of logistics
The parcel delivery industry — the sector that deals with the transportation of packages to consumers — is booming thanks to e-commerce growth. The global shipping market, including ocean, air, and truck and courier freight, is now a $2.1tn market, according to the World Bank. Legacy delivery companies have seen a
boom in parcel delivery as e-commerce spending has risen but the new generation of 3PL companies is nipping at their heels. Twenty different partners currently share the duties of shipping Amazon's 600 million packages a year, with FedEx, USPS, and UPS moving the most. Amazon, Alibaba, and Walmart have so far focused on building out their last-mile delivery and logistics services but are increasingly looking at the middle and first mile of the shipping chain, but canny 3PL suppliers such as Diamond Logistics offer a more bespoke carrier-optimised service and are in a prime position to take advantage of this boom. London is the largest and most mature eCommerce
‘Urban logistics is set to be one of the most
significant growth markets of the next few years’
market in Europe with a current urban logistics space requirement of 870,000 sq m. This total is expected to exceed 1.2 million sq m in 2021, an increase of 42%. London has by far the largest European space requirement (870,000 sq m) and this is expected to grow to more than 1,200,000 sq m by 2021. According to the report: “Urban logistics is set to be one of the most significant growth markets of the next few years as eCommerce continues to grow across Europe. Every additional mile adds to the cost and speed of delivery. There is no doubt that demand is there.” The UK logistics sector is booming. In the UK, there
are 178,295 logistics enterprises, with an annual turnover of £1tn. The logistics sector contributes over £124bn Gross Value Added (GVA) to the UK economy,
14 Chamber Profile January/February 2018 The logisitics sector contributions billions to the UK economy
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