Global Contract Logistics 2018 – Sample ReportJune 2018

About Ti

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• Ti Consulting

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Ti acts as advisors to the World Economic Forum, World Bank, UNand European Commission and have 14 years worth of providingexpert analysis to the worlds leading manufacturers, retailers,banks, consultancies, shipping lines and logistics providers.

What Sets Ti Apart?

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Table of Contents

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1.0 Key Findings

2.0 Macro Trends2.1 Brexit

2.1.1 Currency2.1.2 Tariff and Non-Tariff Barriers2.1.3 Brexit & Emerging Markets2.1.4 What Next?

2.2 NAFTA2.2.1 Why is it important for LSPs?2.2.2 NAFTA & the Automotive Supply Chain2.2.3 Logistics Provider Exposure

3.0 Technology Developments 3.1 Technology in The Supply Chain – From Old to New3.2 Artificial Intelligence in Logistics

3.2.1 What does this mean for LSPs?3.3 Autonomous Vehicles

3.3.1 What does this mean for LSPs?3.4 Warehouse Automation: Robotics – by Professor John Manners-Bell

3.4.1 The role of robots in the warehouse and their impact on the logistics industry3.4.2 Robotics in logistics3.4.3 What will be the future role of the LSP?

3.5 Blockchain3.5.1 Blockchain and data fragmentation in supply chain

4.0 Contract Logistics – Vertical Sector Analysis4.1 Global Contract Logistics Market Size by Vertical Sector

4.1.1 Global Contract Logistics Market Size by Logistics Service

4.2 Manufacturing4.2.1 Manufacturing Contract Logistics – Measures of growth4.2.2 Manufacturing contract logistics – Manufacturing production growth and forecasts by sector

4.3 Retail4.3.1 Consumer & retail contract logistics – Retail sales4.3.2 Consumer & retail contract logistics – Retail sales growth by country4.3.3 Consumer & retail contract logistics – Modern retailing in emerging markets4.3.4 Consumer & retail contract logistics – retail and e-commerce forecasts

4.4 Sector Focus – Retail4.4.1 Major change in UK Retail Supply Chains: Debenhams and Marks & Spencer4.4.2 Fast fashion – by Professor John Manners-Bell4.4.3 Technology in bricks-and-mortar retail

5.0 Global Contract Logistics Market Sizing5.1 Contract Logistics Penetration by Region5.2 Global Contract Logistics Market Size & Forecast5.3 Asia Pacific Contract Logistics Market Size & Forecast5.4 Europe Contract Logistics Market Size & Forecast5.5 Middle East & North Africa Contract Logistics Market Size & Forecast

Table of Contents (Cont.)

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5.6 North America Contract Logistics Market Size & Forecast5.7 Russia, Caucasus and Central Asia Contract Logistics Market Size & Forecast5.8 South America Contract Logistics Market Size & Forecast5.9 Sub-Saharan Africa Contract Logistics Market Size and Forecast

6.0 Contract Logistics Providers6.1 Global Top 10 Players and Market Shares

6.1.1 Asia Pacific Top 10 Players and Market Shares6.1.2 Europe Top 10 Players and Market Shares6.1.3 North America Top 10 Players and Market Shares

6.2 Providers6.2.1 Agility6.2.2 CEVA6.2.3 DB Schenker6.2.4 DHL Supply Chain6.2.5 DSV6.2.6 Kuehne + Nagel6.2.7 Ryder System6.2.8 SNCF Logistics/GEODIS6.2.9 UPS Supply Chain6.2.10 XPO6.2.11 Yusen Logistics

Table of Figures

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Figure 2.1 Brexit ScenariosFigure 2.2 Potential Impact of Brexit by SectorFigure 2.3 €:£ Trade Weighted Exchange RateFigure 2.4 Total Logistics CostsFigure 2.5 Brexit TrilemmaFigure 2.6 US Trade Balance with NAFTA (6-month moving average)Figure 2.7 US automotive trade within and outside NAFTAFigure 2.8 Logistics Provider Exposure to NAFTA Automotive ManufacturingFigure 3.1 Information Exchange in Supply ChainsFigure 3.2 Aquifi Fluid Vision Product Inspection SystemFigure 3.3 How Does Blockchain Work?Figure 3.4 OriginTrail and Provenance Case StudyFigure 3.5 When Does Blockchain Make Sense?Figure 3.6 Data in the Supply ChainFigure 4.1 Global Contract Logistics Market Size by Vertical SectorFigure 4.2 Global Contract Logistics Market Size by Logistics Service Key FindingsFigure 4.3 Manufacturing Production Growth by CountryFigure 4.4 Manufacturing production growth by sectorFigure 4.5 Real Contract Logistics Growth Forecasts by SectorFigure 4.6 Retail Contract Logistics Market Size Example 1Figure 4.7 Retail Contract Logistics Market Size Example 2Figure 4.8 Retail Sales Volume Growth 2017Figure 4.9 Modern/Formal Retail Penetration by Country (2015 % of Sales)Figure 4.10 Real Contract Logistics Growth Forecasts by SectorFigure 4.11 CommonSense RoboticsFigure 5.1 Contract logistics penetration rates by regionFigure 5.2 Global Contract Logistics Market Growth Map

Figure 5.3 Global contract logistics market size and real growth ratesFigure 5.4 Global contract logistics market forecast 2022Figure 5.5 Global contract logistics market size by region (2017)Figure 5.6 Global contract logistics market size by region (2022)Figure 5.7 Asia Pacific contract logistics market size and real growth ratesFigure 5.8 Asia Pacific contract logistics market forecast 2022Figure 5.9 Asia Pacific contract logistics market size by country (2017)Figure 5.10 Asia Pacific contract logistics market size by country (2022)Figure 5.11 Europe contract logistics market size and real growth ratesFigure 5.12 Europe contract logistics market forecast 2022Figure 5.13 Europe contract logistics market size by country (2017)Figure 5.14 Europe contract logistics market size by country (2022)Figure 5.15 Middle East & North Africa contract logistics market size and real growth ratesFigure 5.16 Middle East & North Africa contract logistics market forecast 2022Figure 5.17 Middle East & North Africa contract logistics market size by country (2017)Figure 5.18 Middle East & North Africa contract logistics market size by country (2022)Figure 5.19 North America contract logistics market size and real growth ratesFigure 5.20 North America contract logistics market forecast 2022

Table of Figures (Cont.)

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Figure 5.21 North America contract logistics market size by country (2017)Figure 5.22 North America contract logistics market size by country (2022)Figure 5.23 Russia, Caucasus and Central Asia market size and real growth ratesFigure 5.24 South America contract logistics market size and real growth ratesFigure 5.25 South America contract logistics market forecast 2022Figure 5.26 South America contract logistics market size by country (2017)Figure 5.27 South America contract logistics market size by country 2022Figure 5.28 Sub-Saharan Africa contract logistics market size and real growth ratesFigure 5.29 Sub-Saharan Africa contract logistics market forecast 2022Figure 5.30 Sub-Saharan Africa contract logistics market size by country (2017)Figure 5.31 Sub-Saharan Africa contract logistics market size by country (2022)Figure 6.1 Top 10 Global Contract Logistics Providers by External Revenue 2017 (€m)Figure 6.2 Top 10 Asia Pacific Contract Logistics Providers by External Revenue 2017 (€m)Figure 6.3 Top 10 Europe Contract Logistics Providers by External Revenue 2017 (€m)Figure 6.4 Top 10 North America Contract Logistics Providers by External Revenue 2017 (€m)Figure 6.5 Agility regional operations

Figure 6.6 Agility total revenues (KWDm)Figure 6.7 Agility revenue by geographic location (KWDm)Figure 6.8 Agility Revenue by business segment (KWDm)Figure 6.9 Agility Global Integrated Logistics Revenues (KWDm)Figure 6.10 CEVA Finances TotalFigure 6.11 CEVA revenue by business segment % to total (2017)Figure 6.12 CEVA contract logistics financesFigure 6.13 CEVA revenues by industry sector % to total (2017)Figure 6.14 CEVA revenue by geographic location % to total (2017)Figure 6.15 Facilities added to CEVA network (2016-2018)Figure 6.16 DB Schenker geographic presenceFigure 6.17 DB Schenker Network StatsFigure 6.18 DB Schenker Logistics Finances: TotalFigure 6.19 DB Schenker Logistics revenue by geographic region % to total (2017)Figure 6.20 DB Schenker Logistics Finances: Contract logisticsFigure 6.21 DB Schenker Supply Chain ModelFigure 6.22 DB Schenker platooning trialFigure 6.23 DHL Supply Chain overview by region (Q1 2018)Figure 6.24 DHL Supply Chain Global NetworkFigure 6.25 DHL Supply Chain background & EBIT growth historyFigure 6.26 Revenue & EBIT margin growthFigure 6.27 Revenue by service % to total 2017Figure 6.28 Revenue by vertical sector % to total 2017Figure 6.29 Revenue by geographic region % to total 2017Figure 6.30 Strategy 2020 DHL Supply Chain Progress Metrics

Table of Figures (Cont.)

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Figure 6.31 Strategy 2020 DHL Supply Chain Nine Focus AreasFigure 6.32 Automation and digitalisation at DHL Supply ChainFigure 6.33 IoT heat mapsFigure 6.34 IoT heat map use casesFigure 6.35 DSV geographic presence (2015)Figure 6.36 DSV total revenues (DKKm)Figure 6.37 DSV revenue by business segments % to totalFigure 6.38 DSV Solutions revenue performance (DKKm)Figure 6.39 DSV Solutions Revenue by Geographic Region % to Total 2017Figure 6.40 Facilities added to DSV network (2016-2018)Figure 6.41 DSV Solutions footprint – EuropeFigure 6.42 DSV Solutions footprint Europe - Warehouse SpaceFigure 6.43 DSV Solutions footprint – APACFigure 6.44 DSV Solutions footprint APAC - warehouse spaceFigure 6.45 Kuehne + Nagel Finances: Total GroupFigure 6.46 Kuehne + Nagel Finances: External Revenue by Business Segment % to Total (2017)Figure 6.47 Kuehne + Nagel Finances: Revenues by Geographic Region % to TotalFigure 6.48 Kuehne + Nagel Finances: Contract LogisticsFigure 6.49 Facilities added to Kuehne + Nagel Network (2016-2018)Figure 6.50 Ryder Organisation ChartFigure 6.51 Ryder revenues and EBTFigure 6.52 Ryder revenue by vertical sector (2013)Figure 6.53 Ryder revenue by vertical sector (2017)Figure 6.54 Ryder revenue by customer type (2013)Figure 6.55 Ryder revenue by customer type (2017)Figure 6.56 SNCF Group Organisational StructureFigure 6.57 Geodis Footprint

Figure 6.58 SNCF Logistics Finances: TotalFigure 6.59 Geodis Finances: TotalFigure 6.60 Marken Global NetworkFigure 6.61 UPS Finances: TotalFigure 6.62 UPS Finances: Supply Chain and FreightFigure 6.63 UPS NetworkFigure 6.64 Selected XPO Logistics Acquisitions and Revenue DevelopmentFigure 6.65 XPO Logistics Global FootprintFigure 6.66 XPO Logistics Finances: TotalFigure 6.67 XPO Logistics Finances: LogisticsFigure 6.68 XPO Logistics Revenue by Vertical 2017Figure 6.69 Yusen Logistics Bases of Operations by RegionFigure 6.70 Revenue by Business Segment % to Total 2016Figure 6.71 Revenue by Geographic Location % to Total 2016Figure 6.72 Strategy and Investment by Region 2017-2019Figure 6.73 Financial and Operational Targets to 2025Figure 6.74 Yusen Singapore Tuas Site Automated Transport SystemFigure 6.75 Yusen Singapore Tuas Automated Bulk Storage SystemFigure 6.76 Yusen Singapore Tuas Site Robotic Palletizing and De-PalletisingFigure 6.77 Yusen Singapore Tuas Site Automated Link BridgeFigure 6.78 Yusen Singapore Tuas Site Robotic Order Picking

Logistics Provider Exposure to NAFTA

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Global Contract Logistics – 2017 Market Size Growth

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Global Top 10 Contract Logistics Providers and Market Shares

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DHL Supply Chain is the world's largest contract logistics provider.Ti estimates that it has a global market share of approximatelyX.X%, with its revenues being around three times greater than itsnearest rival, XPO Logistics. Moreover, DHL Supply Chain is alsoby far the most 'global' of the contract logistics providers. It hasmarket-leading positions in Europe and North America and isestimated to be the third-largest provider in Asia Pacific. Kuehne +Nagel, CEVA, UPS and DB Schenker Logistics can also claim tobe global, to varying degrees. XPO Logistics, having acquired bothNorbert Dentressangle and Con-way (Menlo Logistics) in 2015, isnow a very large player in Europe and North America, rankingsecond and third respectively in these regions. However, it onlyhas a small presence in Asia Pacific. Having acquired NorthAmerican contract logistics provider OHL in 2015, Geodis now hasa foothold in North America, alongside its core European business.The only providers in the top 10 overwhelmingly exposed to asingle region are Hitachi (Asia Pacific), Nippon Express (AsiaPacific) and Ryder (North America).

Cumulatively, the top 10 providers are estimated to representX.X% of the global contract logistics market. Although the marketremains highly fragmented, a number of high profile acquisitionshave increased the degree of consolidation over the last couple ofyears. XPO, Geodis, FedEx, Japan Post, DSV, Kintetsu, PenskeLogistics and Sinotrans have all completed significant deals since2014.

The market share for each member of the top 10 is as follows:DHL Supply Chain (X.X%), XPO Logistics (X.X%), Kuehne +Nagel (X.X%), Hitachi Transport System (X.X%), CEVA (X.X%),Geodis (X.X%), Ryder (X.X%), UPS (X.X%), DB SchenkerLogistics (X.X%) and Nippon Express (X.X%).

Note: 2017 revenues have been estimated by Transport Intelligence or sourced directlyfrom company reports and accounts. Average exchange rates for 2017 have beenused to convert to a common currency. Revenues here are estimates or actual figuresof revenues from external customers only. For ‘total’ revenues, refer to the report’sSupplementary Material spreadsheet.

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