Top 5 Emerging Logistics Markets in 2020 Based on Logistics Performance IndexIndia: 7.39 Transportation Industry Statistics and Market Size Overview, Business and Industry Statistics What you are seeing is just a brief peek at a portion of this statistical table. To view more of our data, click the Free Membership button below. Contact your CLA assurance professional for assistance in planning for the implementation of this new standard and determining its impact on your business. Updated guidance on revenue recognition standards will soon affect nearly all U.S. nonpublic companies. The rationale is that the carrier has contracted with a customer to provide services and the carrier is legally responsible to fulfill the terms of the contract. Depending upon the end-user, the global transportation industry is segmented into logistics, maritime, mass transit, freight, shipping, household, public transport and others. The most common occupations in the warehousing and storage industry are laborers and freight, stock, and material movers, by hand (301,210 workers earning an average annual wage of $33,620 in 2019); industrial truck and tractor operators (195,860 workers earning an average annual wage of $37,800 the same year);and stockers and order filers (178,2170 workers earning an average annual wage of $34,510 that same year). (GPS World, 2018), Amazon Prime Air delivers packages less than 5 pounds in 30 minutes or less using small drones. Further, transit and ground passenger has the highest market share owing to the rising trend of tours and travelling around the globe which impels the transit & ground passenger segment. Implementing fleet management software provides a soft start and can be the launchpad to the adoption of other innovations. Prior to 1984 excludes commuter rail, automated guideway, urban boat, demand responsive, and most rural and smaller systems. According to the International Organization of Motor Vehicle Manufacturers, the light commercial vehicle sale increased to 20223655 numbers of units around the globe. Here are 10 US trucking industry statistics. Analysis of Features, Benefits and Pricing. (PwC, 2019), On the other hand, in-house and outsourced contract logistics account for $1855.2 billion of the global logistics market. The guidance provides two alternative transition methods that you may elect to adopt: Our take: In determining which method to elect, consider not only which method is easier to apply, but also what the expectations are of the investor community. (FreightWaves, 2018), With blockchain, the supply chain for used trucks and trucks part can easily be tracked on a digital ledger as a type of CARFAX on steroids for the Transport and logistics industry. The transfer of a promised good or service to a customer occurs when the customer obtains control of the item. Our take: The single performance obligation performed by a carrier is typically transportation services. T eliges cundo quieres repartir. (Statista, 2020), To enhance supply chain resilience, 53% of business executives plan to have dual sourcing of raw materials, 47% plan to increase the inventory of critical products, while 40% will implement nearshoring and expanding their supplier base. North America region holds the largest market share global Transportation Industry market. High volumes of heavy cargo and products are transported long distances throughout the United States via rail network. (IBISWorld, 2020), Interestingly, in 2018, the container shipping market reported a growth of 4-4.5% in container volume. Further on 17th April 2020, the Government of India launched Kisan Rath App for transportation of farm produce to mandis during lockdown due to the covid-19 pandemic. (Mind Aspire Market Research, 2016), The global connected logistics market is expected to reach more than $54 billion by 2022. The ongoing evolution in areas like machine learning, artificial intelligence, and immersive technologies has led the innovations in multiple aspects of transportation. The American Trucking Associations released its American . Overview: FedEx, founded in 1973 with the U.S. office based in Memphis, Tennessee, United States and the company has around 500,000 global team members. Put simply, transportation provides the essential services through which a business physically connects to its supply chain partners, namely consumers and suppliers. A customer has control of an item if the customer is able to both (1) direct the use of the item, and (2) obtain basically all of the remaining benefits, such as potential cash flows, from the item. The FASB acknowledged that practical limitations may exist in whether another carrier would be able to take over the remainder of the trip for an incomplete shipment, but indicated that this fact should be disregarded under the guidance for the revenue recognition model. The logistics and transportation industry in the United States is highly competitive. Aerial delivery is second at (25%), followed by aerial inspection of infrastructure (25%), and aerial surveillance and security (13%). Our, Fleetsmith is a comprehensive mobile device management (MDM) system designed to automate tasks and processes for iOS and Mac devices. (Cision PR Newswire, 2020), With a score of 8.9, China is the leading emerging market based on the Logistics Performance Index. (Amcor, 2020), Interestingly, in 2020, US consumers returned merchandise that was worth $428 billion. Learn how this will impact the transportation and logistics industry. (Transport Intelligence, 2019), Interestingly, the Memphis International Airport was the busiest cargo airport in the US and the second-largest cargo hub globally, trailing behind only Hong Kong airport. Learn how it works in our, Wialon is a multifunctional fleet management system that is also used for mobile and stationary assets tracking. Among this smart transportation has the highest market share in 2019, this is due to the growing adoption of mobile-based applications, websites for online booking have impelled the growth of this segment followed by on-demand and conventional transportation. If a contract has multiple performance obligations, an entity must determine an appropriate allocation of the transaction price to those multiple performance obligations. With the extent of the changes in the new revenue standard, it will be vital for you to plan for and then execute the implementation process. After just 6 months of launch, the robots had traveled over 1.5 million miles. In fact, 41% of US consumers have used a shared economy offering of on-demand, expedited, or same-day delivery service. SelectUSA Logistics and Transportation Industry. Top 5 Emerging Logistics Markets in 2020 Based on Logistics Performance IndexUnited Arab Emirates: 6.36 Fortunately, the modern breakthroughs in technologies like machine learning, AI, autonomous trucking, AR, AUVs, and drones, point to a bright future. Firms in these industries offer expedited, time-sensitive, and end-to-end services for documents, small parcels, and high-value items. On the other hand, logistics is broader than transportation; as such, it implies a more extensive spectrum of operations. The transportation sector consists of several industries including air freight, logistics, marines, airlines, road & rail, and transportation infrastructure. For instance, on 21st May 2020, the United States government congressional district released a proposal for the development of the high-speed rail network by investing US$ 240 billion nationwide. It is essential to know the different revenue models present in the industry because they vary according to business size, legal structure, and . If you have questions regarding individual license information, please contact Elizabeth Spencer. North Americaregion ControlstheTransportation Industry Marketduring 2022-2029. The global Transportation Industry is driven by the rising demand for online shopping through e-commerce platforms due to increasing consumer spending and surge in internet connectivity all over the world. (Statista, 2021), Also, to note, 40% of the mileage driven in Europe could be covered by autonomous vehicles in 2030. (DHL, 2019), 80% of warehouses today are manually operated. The transportation industry has shown growth in August 2020, as several countries have slowed down restrictions and several leading transportation companies have taken initiatives to support the E-commerce business as well as the agriculture sector. The global transportation industry market is highly competitive with the presence of several international and local markets. According to Global System for Mobile Communications in 2018, an estimated around 3.8 billion total number of mobile internet users globally propel the rental and ride-sharing technology segmental growth. Companies are entering into collaborations, acquisitions, mergers, and licensing for increasing their market penetration. America's highly integrated supply chain network links producers and consumers through multiple transportation modes, including air and express delivery services, freight rail, maritime transport, and truck transport. (CNBC, 2018), Moreover, in 2018, Amazon introduced a pair of new robots at its sortation center in Denver, Colorado. (Amazon), Besides, approximately 25% of US consumers are will to pay higher for the privilege of instant or same-day delivery. Whether you are an LSP or are looking to hire one, these stats will help you overcome the industry challenges. Download JPEG image Posicin: Quieres aumentar tus ganancias? 2023 CliftonLarsonAllen. Lately, the fast pace of technological innovation, volatile economic times, and the disruption of the COVID-19 pandemic have made it difficult for businesses in the transport and logistics industry to thrive. The FASBs updated guidance generally applies to all entities industry-wide, including private companies, public companies, and non-profit organizations. Using a reliable fleet management software can be a good start. Each CLA Global network firm is a member of CLA Global Limited, a UK private company limited by guarantee. In fact, the different sectors of the freight industry are growing, albeit rather at widely segmented rates. There were also 35,140 workers employed in the installation, maintenance, and repair occupations group, earning an average annual wage of $64,170. (DHL, 2019), According to DHL, drivers spend up to 60% of their time away from the distribution center, not driving. However, the industry is embroiled in multiple disruptions and uncertainty, and firms that are digitally unfit risk obsolescence. CLA Global Limited does not practice accountancy or provide any services to clients. The rising trend of the tours and travels around the globe which propels the transit and ground passenger segment accounted for the largest share of the global transportation industry market in 2019. The most common occupations in the industry are transportation and material moving occupations, which comprised 293,470 employees earning an average annual wage of $45,670 in 2019. From increasing international freight traffic to the adoption of smart containerization, change has been constant. Learn how this will impact the transportation and logistics industry. These services are not distinct from freight services, as they are highly interrelated to the trip completed by the carrier. Our take: Under the new standards, as long as the carrier has enforceable rights, simply following customary business practices would constitute a contract, which could be represented as individual customer orders supported by pricing negotiated with the shipper. According to the International Air Transport Association (IATA) in 2019, the number of international passenger trips in China and India are 50 million and 30 million respectively. The industry is morphing into an intricate space, not just for logistics service providers (LSPs) and other industry stakeholders but also for business in general. This will replace the various divergent methods existing currently, as the literature surrounding the generally accepted accounting principles (GAAP) is primarily based on an entitys industry focus. (McKinsey & Company, 2018), Interestingly, an analysis of large ocean carriers websites revealed that more than 50% took 13 seconds to load, whereas 20% took more than 20 seconds to load. (United Nations Conference on Trade and Development, 2020), Interestingly, ground transportation industry statistics, road freight the dominant segment, controlling nearly one-third of the total global logistics spend ($1972.9 billion). To comply with the new revenue recognition standard, calculate the revenue in transit as of the end of a reporting period using a method such as the number of days completed for each trip at year-end, or the distance traveled as of year-end in comparison to the total trip distance of each respective trip in progress. During the evolution of U.S. GAAP, both transaction- and industry-specific guidance evolved. (Transport Intelligence, 2019), Interestingly, despite being the catchwords, buses and trucks emit 25% of carbon dioxide emissions from road transport. (Supply Chain Quarterly, 2020), After a 4% decline in 2020, truck loadings are expected to increase to more than 5% in 2021. The robot leverages advanced AIpowered algorithms to sort recyclable items on the conveyor belt at the rate of 4,000 times per hour. In the basis of conclusion in the standard, the FASB noted freight revenue should theoretically be recognized over the period of time the shipments are provided for customers shippers receive the benefits of goods being moved from origin to the destination versus at the point in time at delivery. According to the International Organization of Motor Vehicle Manufacturers, the automotive industry is the 6th largest economy in the world approaching to US$ 2.3 trillion mark among only the top 26 countries including the United States, Belgium, UK, Thailand Canada, Brazil, Sweden, Slovenia and many more. All that said, the future of this industry isnt altogether promising. (McKinsey & Company, 2018), Interestingly, in 2013, Walmart made losses of up to $3 billion because of poor inventory management. Light commercial Vehicle sale increased to 20223655 numbers of units around the globe, airlines, road & rail and! Million miles and logistics industry boat, demand responsive, and immersive technologies has led innovations... Vehicle sale increased to 20223655 numbers of units around the globe can be a good.... Be a good start transportation industry revenue U.S. GAAP, both transaction- and industry-specific evolved! 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