Global Transport and Logistics Growth Expected in 2024 and 2025

Global transport and logistics output is expected to grow by 3.8% in 2024 and 4.0% in 2025, driven by increased industrial production and consumer demand worldwide. The sector is also poised to benefit from a recovery in Europe, which will support growth across various transportation modes. As industrial activity picks up and consumer spending rises, the logistics industry will experience higher demand for services, further contributing to the expected growth rates.

In addition to this positive growth outlook, a recent decline in oil and fuel prices following a brief surge in early 2024 is expected to help ease cost pressures for businesses in the transport and logistics sector. Lower fuel costs will provide some relief to companies dealing with high operational expenses, which could support profitability and sustainability in the industry.

Regarding the ongoing Red Sea crisis, while freight rates are likely to remain elevated in the near term, the situation is expected to stabilize as new ships are introduced, increasing overall capacity. The addition of these vessels will help alleviate some of the price pressures, making transportation costs more manageable for companies moving goods across global trade routes.