China’s market for refrigerated warehouses is expected to grow by about 24 percent for each of the next five years amid a thriving consumer market and food-export sector, real estate services provider Jones Lang LaSalle has predicted. A change in eating habits and heightened awareness of food safety standards are boosting domestic demand for cold storage logistics, a report by the company said. Inadequate regulations and underdeveloped infrastructure are to blame for the gap, industry analysts said. On a state level, instead of having a dedicated department overseeing the cold chain logistics industry, the market is now supervised by a multitude of authorities. Too few quality refrigerated vehicles, railcars and containers and a relatively low stock of refrigerated warehouse space have also hindered development of the industry.
The planned deep-water port in central Quang Tri Province, approved by the Government last year, will bring new economic opportunities to Viet Nam’s central region as well as Laos and Thailand. A recent survey revealed that the construction of a deep water port in My Thuy Commune, Hai Lang District, will bring up to 10 million tonnes of cargo a year through Quang Tri, its surrounding areas, Laos and northeast Thailand – boosting the sea transport sector and opening a trade gateway between central Viet Nam and the neighboring countries to the East Sea.
Reverse logistics is the process of moving a product from the consumer to the manufacturer, the point of origin, for reuse or disposal. The process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. In India, aftermarket returns that form part of the reverse logistics industry are estimated at $10-15 billion. Aftermarket is the secondary market that supplies accessories, spare parts, second-hand equipment, and other goods and services used in the repair and maintenance of returned products. In contrast, the logistics industry contributes around 13% of India’s $1 trillion gross domestic product (GDP). Still, reverse logistics has the potential to become a key route to cost optimization as the Indian economy grows.
The logistics industry took a particularly hard hit over the past year, according to the 2009 State of Logistics Report, released by the Council of Supply Chain Management Professionals (CSCMP). The recession has wreaked havoc with many of the companies that provide transportation and warehousing services to manufacturers, with more than 3,000 trucking companies alone going out of business in 2008, eliminating 7% of the available capacity on US highways. The only bright spot to this decline, at least for manufacturers, is that after rising more than 50% during the previous five years, the cost of logistics actually dropped 3.5% in 2008. The unfortunate reason for this decline is the simple fact that industrial production fell 7.8% in 2008, and thus manufacturers had less freight in the supply chain. The total cost of logistics in the United States now stands at $1.3 trillion, representing 9.4% of the US GDP. Inventory carrying costs dropped 13% over the past year, mainly because interest rates were more than 50% lower than in 2007. Warehousing costs were up 9.5%, as goods spent more time in warehouses, while transportation costs in 2008 were up just 2% over the prior year.
A new report by Analytiqa, a U.K.based business research firm, found that in their survey ten percent of all European companies have stopped having a supply chain director as a board member, despite the fact that most have increased the head count within their supply chain department. The survey showed over 40 percent of European retailers and manufacturers no longer include any supply chain professional on their managerial boards. Ninety percent of the survey respondents had a positive view of the performance of their supply chain between 2008 and 2009. The most critical future strategic issues identified were forecasting accuracy, overcoming the growing complexity of their supply chains and managing increasing costs.