我ndustry expert shares forecast on global 3PL sector: Part II

Cathy Morrow Roberson, Founder & Head Analyst for Logistics Trends & Insights LLC – a boutique market research firm that specializes in global supply chains – recently shared her observations on the current state of the global and domestic Third-Party Logistics (3PL) industry in this exclusive interview.

Logistics Management:For domestic players, is there a trend for more cross-border and on-shoring concentration?

Cathy Morrow Roberson:Cross border activities continue but I think there may be more considerations for on-shoring as we move past COVID-19 particularly, as it relates to the pharma/healthcare supply chain.

LM:To what extent has digitization made an impact?

Morrow Roberson:我t’s helped to improve visibility within supply chains but at the same time it’s also highlighted gaps such as the need for more visibility beyond the tier 1 or tier 2 supplier. Digitization has also helped to obtain and book transportation for goods faster and also to collaborate with supply chain partners in real-time.

LM:Should we expect to see more AI, Robotics, and Block Chain?

Morrow Roberson:我believe we will but I also feel that investments will be slowed until the pandemic eases. Supply chains will likely alter due to changes in demand brought on by the pandemic. In addition, cash flow may be an issue for some 3PLs so any tech investment will be carefully considered.

LM:How about the M&A landscape? Any big deals on the horizon?

Morrow Roberson:M&A will probably not pick up until later this year or at least when we emerge from the pandemic crisis. Right now, there is way too much uncertainty to conduct an acquisition. However, when the time is right, expect a healthy M&A environment. The larger, more financially stable 3PLs will have their pick of companies to choose from.

LM:哪些特定的第三方物流严重依赖冷吗Chain? Will this continue to be a vibrant sector?

Morrow Roberson:冷链仍将是一个充满活力的部门。我n our Global Freight Forwarding report, we highlighted this sector as a strong one for acquisitions in which Kuehne + Nagel and Panalpina (acquired by DSV) are playing leading roles. Air cargo demand for fresh produce, meats, vegetables and flowers has been on the rise in recent years due to a growing middle class in China as well as growing demand in other Asian countries, the Middle East and elsewhere. The ability for air cargo to move perishable goods from one place to another quickly is a key driver of this cargo growth and in some cases, it is replacing profitable electronics volumes that peaked by 2010 for air cargo providers. In addition, those 3PLs with a strong pharma/healthcare emphasis such as UPS and DHL also will see cold chain services grow.

LM:When will the barriers-to-entry finally come down to permit new players to penetrate the “Top 50” marketplace?

Morrow Roberson:As technology investments are made and new start-ups emerge, you’ll see the barriers-to-entry fall to allow new players to enter the top 50. Also, it is likely that there will be a fall-out from the pandemic and recession.