The global logistics industry is set for a challenging year in 2008 as the effects of the credit crunch filters through to consumer spending. Margins in the industry are already thin, but shippers can make moves now to improve their chance of future success.

A new report predicts that as the fallout from the global credit crunch becomes clearer, margins in the logistics sector are set to come under further pressure. However, the report highlights several trends outside the macroeconomic environment that are set to have a large impact on the industry.

2007 was indeed a year of two halves. In the first six months, the major concern for the global economy was that it would overheat through its rapid expansion, driven by continued consumer spending in the larger economies. However, the crisis over the US sub-prime market rapidly tightened the tap on the liquidity market, which quickly dampened global optimism.

Although the credit crunch began to squeeze global markets in the second half of 2007, this has yet to fully filter through to consumer spending and subsequently to the financial results in the logistics sector. Consequently third-party logistics players (3PLs) recorded healthy increases in both revenue and operating profit during the year.

The global logistics landscape is set to change. Technology will play an increasingly important role and Radio Frequency Identification will eventually be seen as a standard product offering. The environment has rapidly risen up company agendas, requiring 3PLs to examine their Green Supply Chain options