Frost & Sullivan Finds that the Global Recession is Fostering Consolidation in the Logistics and Transportation Industry

LONDON, November 18 - Logistics service providers (LSPs) and end user companies can expect
unique opportunities that would be inconceivable in a healthier economy. The
global recession has actually created a climate in which they can re-align
business processes to emerge stronger from the ongoing economic crisis.

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New analysis from Frost & Sullivan (www.automotive.frost.com),
Global Logistics and Transportation Industry Outlook 2009: Impact of Economic
Slowdown on the Future of The United States, The European Union and The Asia
Pacific, finds that the global transportation and logistics industry is set
to tread a novel path out of the ongoing economic crisis.

"The current crisis has underscored the need to ease trade policies,
reduce tariffs and expand multilateral trade agreements," notes Frost &
Sullivan Research Associate Prasanna Sriraman. "In addition, we are seeing
better sharing of global trade information as well as the acceleration of
pending business proposals to facilitate trade. This is opening up a wealth
of opportunities for the global logistics and transportation industry."

Many governments have focused on stimulating trade with new trade
policies and multilateral trade agreements. Besides these measures, tariff
reductions are playing a pivotal role in improving trade flow.

While this bodes well for the transportation and logistics industry, LSPs
are facing a tough time. Their businesses are intertwined with particular
industry sectors. Fluctuating demand, the liquidity crunch in the market as
well as this narrow focus on industry sectors, has put LSPs in a challenging
situation.

"As most sectors including automotive, retail and consumer electronics
are affected by the recession, so to are the LSPs that serve them," explains
Sriraman. "In addition, some LSPs focus only on particular sectors, which
when affected, pulls the LSP down along with the market."

LSPs and end user companies related to different industry sectors must
collaborate among themselves and with their suppliers to create the economies
of scale needed to survive the ongoing crisis.

Producers of goods within the same industry must co-operate, ignoring the
need to make competitive gains, to ensure full container loads, thereby
reducing costs. Similarly, LSPs must collaborate to offer services that would
reduce operating costs and optimise asset usage.

"Large trade volumes can be generated by following these strategies,"
concludes Sriraman. "This would bring about the much needed cost reductions
that could be passed on to consumers, in turn increasing market demand."

Global Logistics and Transportation Industry Outlook 2009: Impact of
Economic Slowdown on the Future of The United States, The European Union and
The Asia Pacific is part of the Automotive & Transportation Growth
Partnership Services programme, which also includes research in the following
markets: 360 Degree CEO Perspective of the Global Logistics Industry,
Logistics Industry Benchmarking in India, ASEAN Transportation & Logistics
Competitive Benchmarking Assessment - Voice of Customer Study Indonesia and,
Analysis of the German and the United Kingdom Markets for Insight Logistics
Services. All research included in subscriptions provide detailed market
opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, please email Monika
Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com, with
your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country. Upon receipt of the above
information, a brief brochure will be e-mailed to you.

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Global Logistics and Transportation Industry Outlook 2009: Impact of
Economic Slowdown on the Future of The United States, The European Union and
The Asia Pacific

M41C

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com