Market Trends of Germany Contract Logistics Industry
This section covers the major market trends shaping the Germany Contract Logistics Market according to our research experts:
Climate Protection and Green Logistics
The logistic sector is one of the major contributors to carbon emission and global warming. Being one of the leading markets of contract logistics service, the German companies are focusing on transforming their services in such a way that reduces the use of fossil fuels, conserves resources and improves the efficiency through less waste. The German retail giant, Otto has now achieved its target of 50% CO2 reduction by 2020 and is aiming to become climate neutral by 2050 by expanding the renewable energies and systematic shift to more climate-friendly means of transport.
Dachser in partnership with Mercedes Benz is now using the all-electric 18-ton trucks for transporting deliveries both directly to customers and to the micro hub in Stuttgart, Germany. Likewise, DHL Freights in partnership with BMW pilots launched its first Liquified Natural Gas-powered truck with mega trailers. These trucks are 15% more efficient than the traditional trucks, has helped to reduce the operational costs of the company and are promising sustainable solution for automotive logistics.
Growth in the E-Commerce Retail
According to Handelsverband Deutschland (HDE), while apparel was the major contributor, the fast-moving consumer goods and groceries were the drivers of sales in the e-commerce market. The e-commerce spending reported a 7.5% growth in the year 2019 and is expected to grow with the increasing m-commerce penetration by about 12% in 2020.
While the e-commerce market is growing, the dependence of the e-retailers in the market is reducing. Two major e-retailers, Amazon and Otto, that hold about 50% of the market, are focusing on the development of their in-house logistics services while providing fulfilment services to the small retailers.
