An economic activity involved in manufacturing or distribution is linked to a complex system of suppliers and customers, which must be supported by a transport system. The system as a whole is known as a supply chain; a sequence of transportation and inventory management tasks. A supplier can be another’s
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The Relevance of Logistics
There are several factors that underline the growing importance that logistics plays in the global economy:
Major Commercial Actors in Freight Distribution
The global freight transport industry is composed of a series of key actors: Maritime shipping lines. They control long distance segments of the global freight distribution system by linking major markets (maritime ranges). A highly capital intensive industry with ship assets that are deployed along a network configuration involving a
The Commercialization of Transportation
Commercialization involves the extension of the operational scale of passenger and freight transport systems so that that they can reach their optimal market potential. Although an optimal market size can never be attained due to regulations preventing monopolies and differences in consumer preferences (e.g. modal choice), the trend towards maximal
Increases in U.S. Commercial Freight Shipments and Related Growth Factors, 1993-2002
Source: U.S. Department of Transportation, Bureau of Transportation Statistics, Growth in the Nation’s Freight Shipments – Highlights. The high rate of growth of retail and wholesale activities in the United States in the 1990s suggests a substantial commodification of the economy and a new commercial environment where the consumer plays
World Nominal GDP, 2000-21
Note: Current US Dollars.Source: World Bank Development Indicators. The global generation of wealth remains highly concentrated. The four largest economies, the United States, Japan, China, and Germany, alone accounted for more than 40% of the world’s GDP. Thus, nine countries (G8 + China) generated more than half the global economic
The Economic Output of the World’s Major Metropolitan Areas, 2012
Source: “Global MetroMonitor 2012: Slowdown, Recovery, and Interdependence” (Washington: Brookings Institution). Large metropolitan areas are the foci of global commercial activity as well as global economic output. The world’s 300 largest metropolitan areas account for 19% of the global population but for 48% of the global GDP. They tend to dominate
Global Gross Domestic Product and Human Development Index, 2015
Source: UNEP (2012): The UNEP Environmental Data Explorer, as compiled from World Development Indicators (WDI-The World Bank). United Nations Environment Programme. The Gross Domestic Product (GDP) is the total output of goods and services for final use produced by an economy by both residents and non-residents. It is equal to
Drivers of Change in Manufacturing
Source: Future of Manufacturing Council, World Economic Forum. The manufacturing sector is subject to transitions as economies develop, and so do their capabilities. Three stages can be identified with a growing level of added value and complexity, each characterized by different manufacturing strategies and policies. These stages are not necessarily
GDP Share of Manufacturing, Selected Countries, 1970-2021
Source: United Nations Statistical Division.Note: The sharp drop in the GDP share of manufacturing for China between 2003 and 2004 is the outcome of a statistical redefinition. In previous years manufacturing was included with mining and utilities. From 2004, manufacturing was reported independently. The shift in the contribution of manufacturing