Maritime Trade and Transport - HWWI

4. Reorganization of the logistics market
Logistics is, as we have seen, a booming sector. Globalization and containerization constitute
one important aspect. The outsourcing of transport and warehousing services in the broader
sense is another. This means that value added along the logistics chain is growing more quickly
than growth in production volume itself.
Whereas for a long time logistics essentially referred to shipping and storing, the spectrum
of services later grew to include activities such as consolidating and labeling shipments or invoicing.
Today services have been added which may range from continuous shipment tracking
to running call centers for the customer. Companies that operate worldwide expect comprehensive,
all-around service packages.
Assembly of the Airbus is an example, albeit an extreme one. The initial wing sections are
manufactured in Japan and then transported by air or sea to Hamburg to be further processed.
They go on to Italy, then via Augsburg back to Hamburg, where, after they are attached to the
fuselage parts from Toulouse, final assembly follows. A small or medium-sized company cannot
provide such services.
4.1 Global orientation
Suitable for such responsibilities are primarily financially strong, globally operating companies
that master the complete intermodal logistics chain. This may involve a single group of
companies or alliances. In 2006, there were only a handful of these “big players.” Number 1
worldwide was Deutsche Post, with a market share of 11%, equivalent to approximately
€20 bn. It was followed by Nippon Express with 5% (chiefly realized in Asia, thus not really
global).
Symptomatic of logisticians who aim at operating globally is an aggressive acquisition strategy.
In recent years, for example, among the acquisitions of Deutsche Post were Danzas (Switzerland),
DHL (which in turn acquired the U.S. air cargo service company Airborne in 2003
for $1 bn), and, in 2005, Exel (UK) for an amazing €5.5 bn. The long-term strategy involved
in acquisitions of this kind may indicate that considerable initial losses are acceptable. In 2005,
the U.S. business still “cost” €400 mn.
The Deutsche Bahn “grew” to include the Schenker Group, has at its disposal Rhenus AG,
firmly entrenched in inland waterway transport, and finally made various bids, including those
for the Hamburger Hafen- und Lager AG (HHLA) and the Lübeck Regional Port.
In this connection, from the corporate and investor point of view, the establishment of
transport software that expands as needed is of particularly great importance. In the long term,
two-digit growth rates can generally be expected.
Berenberg Bank · HWWI: Strategy 2030 · No. 4
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