January 21, 2022

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There is a good opportunity for investors in comprehensive logistics

There is a good opportunity for investors in comprehensive logistics

Global supply chains face a major challenge. It frustrates customers because they can’t get a new iPad, a car, or whatever item they want to own ASAP. The situation requires the consolidation of the logistics sector, which provides new opportunities not only for end consumers but also for investors.

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Companies are willing to pay more

Transport of goods around the world present very demanding. In the past, the supply chain operated on the basis of security Delivery as soon as possible goods for at the lowest possible price.

The current situation is different and appropriate for the sector. Companies are willing to pay more For being the first to deliver their goods in competing products. On the other hand, competition in this sector is increasing and new players are entering it, and this is what creates opportunities for investors.

Comprehensive logistics partners

s Container price hike a Decreased chances of discharge In ports, it is increasingly important for businesses to close Comprehensive agreement with its logistic partner, And they did it for him Premium partnerGoods to be transported He prefers.

According to Peter Garnery, Head of Capital Strategies at Saxo Bank, current supply-side constraints Logistics department into two parts: “Thanks to the challenges we face, we have noticed Shift towards companies that provide comprehensive logistics services At the expense of more traditional carriers that, len´ Transportation of goods from point A to point B. “

Why companies are willing to pay more for shipping

The volume of cargo offloaded and loaded at a port like Hong Kong is down 25% year over year. Added to this is the huge increase in shipping container prices, which have increased nearly 6-fold in 6 years. This means for companies that find it more difficult to move their goods into a container and container ship, and then move them to where they are sold. Therefore, companies are willing to pay more and more to transport their goods.

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Opportunity for logistics companies

Garnery says so too There is a great opportunity for logistics companies Expand your business and To become more integrated partners production companies. He’s here at the same time Opportunity to charge special prices.

“If you extend your transport width from point A to point B, you will do that Covering the entire path from production to the end customerwhich is very complicated, You can charge an excellent price. I find it very interesting opportunity for investors In the field of logistics,” explains the banking analyst.

Well, this is not for everyone. “logistics companiesthat adhere to traditional business models, They may have problems. I don’t think the simplest carriers, like trucking or sea freight companies, It would be interesting for this model of cooperation,” he adds.

Logistics problems started last year

Logistics and freight transport problems are not just a phenomenon this year. They started last year with the onset of the coronavirus pandemic. The second quarter of last year was particularly critical. But then this case Nobody paid extra attention, because the economies of all countries operate in a limited mode. Gradually, the situation improved and The gravity of the situation was not fully clear until this yearWhen economies are operating, logistics are lagging behind.