Contract Logistics Market Increasing Demand With Leading Players - DB Schenker, Kuehne + Nagel International AG, XPO Logistics, Ryder System

Contract Logistics Market Outlook 2027 -

Logistics refers to flow of goods from one place to another. Contract logistics provides a wide range of services from production to distribution and after-sales services. Companies operating in the global contract logistics market provide standardized warehousing, transport, and other value-added services to form a customized supply chain solution. Companies involved in contract logistics market are aiming toward applying standard solutions and operations assisted by supply chain providers to meet client expectations. Currently, the market requires a wide range of services and precise logistics practices. Therefore, contract logistics has become an ideal solution for companies that wish to monitor and manage their operations. The market is becoming more and more popular around the globe and is regarded by companies as the best solution to manage increasing cross-border flow of goods.

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COVID-19 scenario Analysis:

Disruption due to the COVID-19 has brought business operations across several industries to a halt.

Contract logistics companies have faced heavy loss during the pandemic across sectors such as automotive and industrial machinery & equipment, owing to shortage of workers and specialized staff.

Supply chain and logistics companies are under pressure due to government regulations on supply of only essential commodities and healthcare products during the COVID-19.

FMCG and healthcare industries are expected to provide much-needed push for logistics and supply chain companies, especially during the pandemic.

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Top impacting factors: market scenario analysis, trends, drivers, and impact analysis

Growth in the e-commerce industry, rise in foreign direct investments, and improvement in focus on risk management in supply chains drive growth of the market. Furthermore, rise in growth of the manufacturing industry and focus on escalating need for achieving cost efficiency, task optimizations, and technological integration related to supply chain activity positively drives the market growth. However, miscommunication, complex nature of supply chain, and lack of skilled professionals are expected to hamper growth of the market. Contrarily, owing to rise in demand for more integrated services, data management, and preference for flexible solutions, the contract logistics market is expected to witness high growth opportunities during the forecast period.

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The contract logistics market trends are as follows:

Growth in e-commerce industry
Contract logistics provide advantages for e-commerce companies of all sizes, such as easy-to-manage businesses, advanced technical solutions, reduced risks, and scalability. This rise in e-commerce activities requires contract logistics providers to operate faster and more efficiently to rapidly process small individual orders. E-commerce shopping is one of the most popular online activities for both domestic and cross-border regions. The e-commerce industry drives demand for convenience, affordability, transparency, and speed in delivery as well as returns. Opportunities and demand in the e-commerce industry are expected to increase, which would directly impact business flow of the contract logistics market. Governments of various countries are supporting growth of e-commerce industries. For instance, the government of India have permitted 100% FDI in business-to-business (B2B) sector to promote growth of the e-commerce industry. All these factors are collectively expected to drive growth of the contract logistics market during the forecast period.

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