Logistics Industry Analysis

Logistics Industry Reports

Having an average of approximately US$ 10 trillion per annum, in the United States of America, the logistics industry is growing rapidly if calculated on the basis of percentage of GDP. Roughly, 10% of its annual GDP comes from the logistics background.

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Areas of The Logistics Industry

Not just the transportation segment, logistics system is huge in its own way and has numerous fields within. We shall study the major areas where logistics prevails.

Transportation and Freight

The main part of logistics is here – transportation, delivery and truck freight. The first job is to create shipping documents in order to proceed and then making a timely delivery of goods.

Distribution and Packaging

You cannot just deliver raw goods to your customers. You need to pack them appropriately so that they do not get damaged while in transit. Labelling and packaging, both ae essential.

Role of Equipment

Cargo handling is made more efficient with updated material handling devices like conveyance robots, automated machines, and picking systems. Role of equipment is important part.

Storage handling

Loading and unloading of cargo must be systematic. If it is done well, then it could save logistics costs. Proper inspection should be done. Wise and speedy business decisions can be taken if the inventory management is correct.

IT systems

WMS (warehouse management systems) handle the inventory using IT systems. A proper record of each item is kept. This reduced the load on the sales team. Checks on duplicate arrival and accuracy can be seen.

Logistics centers

Sorting and transshipping goods is the primary aim of these transfer centers. Distribution centers are an extension of these systems. Sales over the internet have given rise to fulfilment centers. Prompt shipping is initiated here.

Growth of Logistics Industry

A 4% CAGR growth can be forecasted in the United States logistics industry from the year 2022 to 2027. COVID-19 had impacted this US logistics airline industry giving a fall of 1.8% demand then, but it is coming back now gradually. Even the cargo traffic between the US and Asia had decreased to 2.4% during this period.

By the time the year 2045 comes, the US tons-miles freight is expected to reach a peak level of 7.67 trillion. Container volumes are expected to accelerate.

The rail freight market is expected to have a steady growth. As per the past records, a 6.8% growth can be seen in the year 2021 in the revenue per ton-mile. A new record was set in 2020 of an increment in the number of carloads by 15.85% which was US$ 6.1 million approximately. In 2021, exports were 25.3 billion and imports were 26.9 billion.

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Logistics and Technology, together!

E-commerce and parcel growth have also been seen in the past few years. It has a good share of the retail industry as a whole. Internet is getting updated at a fast pace, and so are its endless users.

Tracking and GPS systems

It has become so easy to track your parcels now. You can get notifications and manage your shipment easily. While sitting at home, you can get access to your parcels and customer support to guide you through the whole process.

Social Media

There is probably no one, just no one, who doesn't use social media these days. Any information news can be passed on in real-time to end customers. Even their issues and grievances can be resolved by communicating through this platform.

IoT and RFID

The Internet of things (IoT) has opened a wide range of opportunities. You can minimize risks and curb transparency in this system. The Radio frequency technology is a good way to track inventory by sensor technology.

Why Invest in the Logistics Sector?

Though it’s a highly competitive industry, investing in it could relish the greatest of all profits for you. With a variety of opportunities, you can relish various financial opportunities. Following are the reasons why you must think about investing in the logistics industry.

Compatible Market

It is a prediction that this industry will sustain for a long time. So, investing in it would reap good results. There is a certain consistency in this system that has been observed. Customers are continuing to order goods online.

Progressive Opportunities

You can experience a financial gain when you continuously see the rise and impact the logistics industry is having. Fresh and new ideas ensure that timely delivery is made. With the progressive opportunities logistic industry has grown up.

Escalating Demand

Due to the increasing demands of the customers, it is tough at times to meet the requirements. The high value it is offering naturally gives great investment opportunities because distributing companies are expanding excessively.

What are the Trending Logistics Divisions?

Once the raw materials are obtained from the local or overseas markets, it is sent to the factory for production. The sales logistics make sure the final product reaches the end user safely via retail and wholesale markets. While some products can be recycled at the end of their life, some products need to be disposed of for a good cause and have no usability.