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Developments in the Global Logistics Market

DLAKY, DHLGY, SGLY

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, June 14, 2017 /PRNewswire/ --

The growth of the global logistics market is directly correlated to the development of international trade flow and the current global economic environment. According to a report by Transparency Market Research, the Asia-Pacific and North America are the attractive markets for logistics, especially when it comes to contract services such as third-party logistics. The global logistics market, in terms of revenue, is set to expand from US$8.1 trillion in 2015 to US$15.5 trillion by 2023, registering a CAGR of 7.5% from 2015 to 2024. By volume, the market is expected to clock in a 6.0% CAGR from 2016 to 2024. Petrone Worldwide Inc. (OTC: PFWI), Deutsche Lufthansa AG (OTC: DLAKY), Celadon Group, Inc. (NYSE: CGI), Deutsche Post AG (OTC: DPSGY), Shipping America, Ltd. (NASDAQ: SINO).

In addition, emerging markets are becoming important to the industry, as intra-regional trade in emerging markets are becoming more and more vibrant. In the Asian Pacific, high GDP rates, is projected to continue boosting the logistics market. The report indicates that Germany is a prominent market for logistics in Europe, while other countries such as the U.K. and France have also been contributing considerably to the regional market. Europe is recovering from an economic slowdown and logistics companies are making massive investments to improve the infrastructure in various countries.

Petrone Worldwide Inc. (OTCQB: PFWI) is a company in the hospitality industry with global operations capabilities. Now providing third party logistics for overseas manufacturing companies attempting to sell their goods in North America, PFWI sells and markets products under its own proprietary name and acts as distributor for a wide variety of companies to the hospitality trade.

Earlier today Petrone Worldwide announced that its official purchase of inventory is to meet the increased demand in the European and India marketplace. PFWI's Founder, Victor Petrone, has spent over 20 years building a significant global network of institutional hospitality industry buyers (hotels, resorts and restaurants). PFWI is the exclusive importer and distributor for renowned brands. PFWI focuses as an importer and distributor throughout Europe and India for hospitality solutions for the finest hotels, restaurants and design firms worldwide, offering the hospitality industry an eclectic mix of materials and chic product options. This new inventory will increase PFWI's revenue for the next two quarters at a rate faster than the company had previously projected.

Mr. Petrone believes that the potential for restauranteurs, hoteliers and design firms to easily access the products of PFWI is key; therefore, inventory in the market place is key. Growth in Q1'17 has increased by over 150% from Q1'16 predicated in large part on increasing standards of living and traveling in India, and other developing countries, making restaurant and hotel venues frequented while a recovery in the housing markets in the U.S. and Western Europe, along with rebounding consumer confidence levels should also bolster sales gains causing global demand for major hoteliers to continue their growth and increase their supply chain requirements.

Deutsche Lufthansa AG (OTCQX: DLAKY) is a global aviation group with a total of 540 subsidiaries and equity investments, which in the financial year 2015 were organized into the Passenger Airline Group, Logistics, MRO, Catering and Other business segments. All the segments occupy a leading position in their respective markets. Lufthansa Cargo is the logistics specialist within the Lufthansa Group. On October 3rd, 2016, Lufthansa Technik AG, together with Lufthansa Cargo, reached another important milestone in its preparations for the entry into service of the Airbus A350 at Lufthansa. In a test carried out under real-life conditions at Frankfurt airport, a Trent XWB aircraft engine provided by Rolls-Royce was loaded into a Boeing 777F freighter. The successful loading trial means that the seamless logistics of providing spare engines via air freight are now assured for the bulky Trent XWBs of the A350.

Celadon Group, Inc. (NYSE: CGI), Celadon Logistics Services, a subsidiary company is a full-service 3PL that provides freight brokerage services, freight management, as well as supply chain management solutions, including warehousing and distribution. Celadon Logistics also offers value-added services such as materials management, repacking and sub assembly. On November 9th, 2016, the company announced that it has opened a sales office in the greater Columbus area. As a leading logistics provider, Celadon Logistics has experienced incredible growth over the past several years, which has necessitated the opening of several regional offices, including this operation in central Ohio. "We are excited about the rapid growth that Celadon Logistics has experienced over the past several years in Central Ohio and are excited about the opportunities that come with opening this new office," said Jon Russell, President of Celadon Logistics. 

Deutsche Post AG (OTC: DPSGY) the world's largest postal and logistics service provider, on June 8th announced plans to reduce all logistics-related emissions to zero by 2050. The company thus contributes to the goal of the Paris Climate Protection Agreement to limit global warming to below two degrees Celsius and also supports United Nations Agenda 2030. The company also seeks a role as a leader in green logistics and the customer will support an even greater extent than in the past is that they reach their own climate protection goals. "We decide today in which world we and our children will live in 30 years," explains Frank Appel, CEO of Deutsche Post AG.

Sino-Global Shipping America Ltd. (NASDAQ: SINO), a Virginia corporation, is a non-asset based global shipping and freight logistic integrated solution provider. Sino-Global provides tailored solutions and value added services to its shipping and freight customers to drive effectiveness and control in related links throughout entire logistic chain. Earlier in May, the company announced the signing of two Project Agreements with Sinotrans Guangxi Co., a subsidiary of Sinotrans Limited, which is a leading global integrated logistics service provider and COSCO Beijing International Freight Co., Ltd., a subsidiary of China COSCO Holdings Company Limited. The Project Agreements are extensions of an initial Strategic Cooperation Framework Agreement and Inland Transportation Agreement that the Company entered into with Sinotrans Guangxi and COSFRE Beijing, respectively, in December 2016.

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