Global Contract Logistics 2024

The Global Contract Logistics 2024 Report from Ti Insight – the leading provider of market research to the global logistics industry – shows a return to a more normalised, pre-pandemic state of demand and growth.

According to Ti’s latest market sizing data, the global contract logistics market grew by 3.5% in real terms in 2023, up from 3% growth in 2022, and is expected to grow by a further 4.2% in 2024.

Growth is being driven by emerging economies. In 2023, the Asia Pacific region saw growth of 7.5% y-o-y, versus North America and Europe which grew by 1.6% and 0.2% y-o-y, respectively.

The Global Contract Logistics 2024 Report is written by industry researchers, analysts, and utilising data from Ti’s GSCi knowledge portal, a data powerhouse with over 1 million pieces of data and analysis.

Paul Chapman, Senior Editor at Ti says: “In contrast to other logistics segments, the global contract logistics market largely remains resilient against economic headwinds. We are also seeing continued consolidation in the market as companies seek to secure market position through acquisition.”

Research Highlights:

• Growth in the global contract logistics market will again be led by the Asia Pacific region, which is expected to grow by 7.1% y-o-y in real terms in 2024.
• Growth is expected to pick up in more advanced economies when compared to 2023, although Europe and North America are expected to continue displaying growth rates below the global average into 2024.
• Ti's Warehousing Cost Index details that warehouse costs have been rising steadily since Q1 2022, however y-o-y cost growth has slowed substantially into Q4 2023, particularly in Western economies. Looking forward, warehousing costs are likely to continue growing and remain elevated in comparison with historic norms, more so in Western economies than in North-East Asia.
• According to Ti’s Contract Logistics Procurement Survey, most companies outsource quite a large proportion of their supply chain, but maintain some form of internal supply chain management, most likely as either a control element, or to act as a benchmark of internal performance vs. external performance. Just shy of 60% of respondents stated that the proportion that they outsource will increase in the next year.
• DHL Supply Chain has continued to maintain its place as the global market leader in contract logistics, with almost double the revenues of its nearest rival GXO. DHL is still by far the most ‘global’ of the leading providers. The company maintains the leading position in North America and Europe and is estimated to be the third largest contract logistics provider in Asia Pacific. GXO also has a significant presence the North America (4th) and European (2nd) market, thanks in part to its recent acquisitions such as Clipper. 

The full report also analyses the competitive landscape in the Contract Logistics market and offers in-depth market projections and forecasts: an essential tool for business leaders making critical decisions.