Logistics Real Estate Cycles to be less Volatile

Prologis, a global leader in logistics real estate, today released new research findings, “What’s next: Four forces shaping the logistics real estate cycle”.

Businesses moving goods across the globe are still digesting and trying to cope with the rapid changes in economies, supply chains and logistics real estate affected from the past three years. In
this report, Prologis Research updates our views on demand, supply and the long-term outlook for logistics real estate.

Prologis Research finds four forces shaping the logistics real estate cycle at a global scale:

• Future logistics real estate cycles will be less volatile because of the multiplier effect on demand (20%+ more logistics space needed for every unit of GDP vs. pre-pandemic) and structural discipline in supply.
• Service levels are fuelling demand again. Customer network expansion needs are rooted in offering the speed and choice demanded by the end consumer to compete for revenue.
• The future of supply chain is resilience to persistent disruption through higher inventory carry, diversification of sourcing and near-shoring. We are now past the pandemic bullwhip, but long-range planning is subject to economic headwinds.
• New building deliveries will contract by 35% or more in the U.S. and Europe in 2024, creating a window for positive demand to take market vacancies further below historic norms in late 2024 and 2025.

The research underscores Prologis Europe’s ability to support business growth and supply chain expansion by being where their customers need them to be — and leveraging access, healthy balance sheet and scale to support them at every step of their warehouse journey, be it built-to-suit developments, energy efficiency solutions or operational optimisations.

Read the full report here.

Logistics Real Estate Cycles to be less Volatile

Prologis, a global leader in logistics real estate, today released new research findings, “What’s next: Four forces shaping the logistics real estate cycle”.

Businesses moving goods across the globe are still digesting and trying to cope with the rapid changes in economies, supply chains and logistics real estate affected from the past three years. In
this report, Prologis Research updates our views on demand, supply and the long-term outlook for logistics real estate.

Prologis Research finds four forces shaping the logistics real estate cycle at a global scale:

• Future logistics real estate cycles will be less volatile because of the multiplier effect on demand (20%+ more logistics space needed for every unit of GDP vs. pre-pandemic) and structural discipline in supply.
• Service levels are fuelling demand again. Customer network expansion needs are rooted in offering the speed and choice demanded by the end consumer to compete for revenue.
• The future of supply chain is resilience to persistent disruption through higher inventory carry, diversification of sourcing and near-shoring. We are now past the pandemic bullwhip, but long-range planning is subject to economic headwinds.
• New building deliveries will contract by 35% or more in the U.S. and Europe in 2024, creating a window for positive demand to take market vacancies further below historic norms in late 2024 and 2025.

The research underscores Prologis Europe’s ability to support business growth and supply chain expansion by being where their customers need them to be — and leveraging access, healthy balance sheet and scale to support them at every step of their warehouse journey, be it built-to-suit developments, energy efficiency solutions or operational optimisations.

Read the full report here.

Warehouse Portfolio in Southeast Europe

As one of the leading transport and logistics providers in Southeast Europe, cargo-partner has traditionally placed a strategic focus on this region. In recent months, the company has upgraded its warehouse facilities in Croatia, Slovenia and Türkiye.

Expansion in Zagreb: from 12,900 to 17,500 m²

In late August 2023, cargo-partner expanded its warehouse in Zagreb by 4,600 m² due to rapidly growing customer demand in Croatia. The warehouse was opened in June 2022 and is located ten minutes from the international airport in Zagreb. The latest expansion brings the logistics center’s capacity from the previous 12,900 m² to a total of 17,500 m². The modern facility now includes 20,000 pallet slots as well as a 900 m² mezzanine where the local team provides e-fulfillment and value added services. In addition to short- and long-term storage, the Zagreb warehouse offers daily pallet and parcel distribution to EU- and non-EU countries, a customs bonded area and customs brokerage services. Following the expansion, the warehouse now contains 28 truck docks and three drive-in gates for oversized shipments.

“As we celebrate 40 remarkable years of cargo-partner, it is important to recognize the invaluable role Southeast Europe has played in shaping our company’s enduring success. This expansion is a testament to the extraordinary journey we’ve embarked on together with our customers and our expert teams throughout the region,” said Stefan Krauter, CEO & Founder of cargo-partner.

Zoran Starcevic, Managing Director of cargo-partner in Croatia, stated: “The added storage capacity in Zagreb will allow us to stock a wider range of products – from foodstuffs to pharmaceuticals and a variety of other goods – and respond promptly to market fluctuations and customer needs. Thus, the expansion not only strengthens our market position, but also reinforces our promise to deliver top-notch products and services to our customers.”

Otto Zsivkovits, Regional Director SEE, added: “Our expansion in Zagreb is part of our strategic plan to strengthen our footprint in Southeast Europe, as this region holds immense importance for cargo-partner. In this context, Zagreb serves as a gateway connecting Eastern and Western Europe. As we continue to expand our network, we benefit from growing synergies between our logistics centers in Croatia, Slovenia, Türkiye, Bulgaria, Serbia, and Bosnia and Herzegovina.”

Rooftop delivers clean energy in Ljubljana

Earlier in August, cargo-partner installed a photovoltaic system with 1,192 panels on the roof of its iLogistics Center Ljubljana. The system will produce an estimated 575 MWh of energy per year, covering 34 percent of cargo-partner’s energy consumption in Slovenia. In addition, the solar power plant will save 146 tons of CO₂ annually, which is equivalent to planting 6,698 trees. The iLogistics Center Ljubljana was opened in 2019 and expanded in 2022, bringing its total capacity from 25,000 m² up to 39,100 m².

New iLogistics Center in Istanbul

In July 2023, cargo-partner opened a new iLogistics Center with 20,000 m² of warehouse space in Istanbul. With 25,000 pallet slots and 17 loading docks, the facility provides ideal conditions for customs bonded warehousing, handling of oversized goods and high-tech products, fast trans-shipment and distribution as well as comprehensive e-fulfilment services, including a parcel pickup and return point. In addition to the warehouse facility, the building also contains modern office spaces, providing the new base of operations for cargo-partner’s head office in Türkiye.

Strong warehouse network in Southeast Europe

Aside from these recent expansions, cargo-partner has long had a solid warehouse network in Southeast Europe. In Bulgaria, the logistics provider’s iLogistics Center Sofia offers 22,000 pallet slots on 16,700 m². In Serbia, cargo-partner maintains a strategically located warehouse near the Belgrade airport with 8,000 m² of storage space. In Bosnia and Herzegovina, cargo-partner operates a 1,000 m² warehouse, to which the company has recently added a separate 300 m² area for temporary customs bonded storage.

Warehouse Portfolio in Southeast Europe

As one of the leading transport and logistics providers in Southeast Europe, cargo-partner has traditionally placed a strategic focus on this region. In recent months, the company has upgraded its warehouse facilities in Croatia, Slovenia and Türkiye.

Expansion in Zagreb: from 12,900 to 17,500 m²

In late August 2023, cargo-partner expanded its warehouse in Zagreb by 4,600 m² due to rapidly growing customer demand in Croatia. The warehouse was opened in June 2022 and is located ten minutes from the international airport in Zagreb. The latest expansion brings the logistics center’s capacity from the previous 12,900 m² to a total of 17,500 m². The modern facility now includes 20,000 pallet slots as well as a 900 m² mezzanine where the local team provides e-fulfillment and value added services. In addition to short- and long-term storage, the Zagreb warehouse offers daily pallet and parcel distribution to EU- and non-EU countries, a customs bonded area and customs brokerage services. Following the expansion, the warehouse now contains 28 truck docks and three drive-in gates for oversized shipments.

“As we celebrate 40 remarkable years of cargo-partner, it is important to recognize the invaluable role Southeast Europe has played in shaping our company’s enduring success. This expansion is a testament to the extraordinary journey we’ve embarked on together with our customers and our expert teams throughout the region,” said Stefan Krauter, CEO & Founder of cargo-partner.

Zoran Starcevic, Managing Director of cargo-partner in Croatia, stated: “The added storage capacity in Zagreb will allow us to stock a wider range of products – from foodstuffs to pharmaceuticals and a variety of other goods – and respond promptly to market fluctuations and customer needs. Thus, the expansion not only strengthens our market position, but also reinforces our promise to deliver top-notch products and services to our customers.”

Otto Zsivkovits, Regional Director SEE, added: “Our expansion in Zagreb is part of our strategic plan to strengthen our footprint in Southeast Europe, as this region holds immense importance for cargo-partner. In this context, Zagreb serves as a gateway connecting Eastern and Western Europe. As we continue to expand our network, we benefit from growing synergies between our logistics centers in Croatia, Slovenia, Türkiye, Bulgaria, Serbia, and Bosnia and Herzegovina.”

Rooftop delivers clean energy in Ljubljana

Earlier in August, cargo-partner installed a photovoltaic system with 1,192 panels on the roof of its iLogistics Center Ljubljana. The system will produce an estimated 575 MWh of energy per year, covering 34 percent of cargo-partner’s energy consumption in Slovenia. In addition, the solar power plant will save 146 tons of CO₂ annually, which is equivalent to planting 6,698 trees. The iLogistics Center Ljubljana was opened in 2019 and expanded in 2022, bringing its total capacity from 25,000 m² up to 39,100 m².

New iLogistics Center in Istanbul

In July 2023, cargo-partner opened a new iLogistics Center with 20,000 m² of warehouse space in Istanbul. With 25,000 pallet slots and 17 loading docks, the facility provides ideal conditions for customs bonded warehousing, handling of oversized goods and high-tech products, fast trans-shipment and distribution as well as comprehensive e-fulfilment services, including a parcel pickup and return point. In addition to the warehouse facility, the building also contains modern office spaces, providing the new base of operations for cargo-partner’s head office in Türkiye.

Strong warehouse network in Southeast Europe

Aside from these recent expansions, cargo-partner has long had a solid warehouse network in Southeast Europe. In Bulgaria, the logistics provider’s iLogistics Center Sofia offers 22,000 pallet slots on 16,700 m². In Serbia, cargo-partner maintains a strategically located warehouse near the Belgrade airport with 8,000 m² of storage space. In Bosnia and Herzegovina, cargo-partner operates a 1,000 m² warehouse, to which the company has recently added a separate 300 m² area for temporary customs bonded storage.

German Chemical Logistics Partnership

The German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) and DACHSER Chem Logistics have extended their purchasing partnership in logistics ahead of time by five years. Johann-Peter Nickel, Executive Director at VCI, and Michael Kriegel, Department Head DACHSER Chem Logistics, signed the agreement at Dachser’s Head Office in Kempten.

VCI and Dachser established their purchasing partnership for European groupage logistics back in 2009. As the chemical industry became more and more international, in 2015 the partnership was expanded to include air and sea freight transports. With some 1,900 member companies employing a total of almost 550,000 people in the chemical and pharmaceutical industry and related economic sectors, VCI one of the Germany’s three largest industry associations.

“Dachser is a competent partner for our member companies, one that can handle their European logistics safely with uniform quality standards using its own network while also supplying the intercontinental markets from a single source,” Nickel says in describing the long-standing partnership. Gisa Omlor, who is in charge of the purchasing partnership at VCI, adds: “With some sensitive products and numerous special legal regulations, the chemical industry is very demanding, especially when it comes to logistics. Having a long-standing partner that has the requisite expertise and commitment as well as the ability to communicate with German SMEs as an equal provides crucial added value and a competitive edge.”

Strong partners

The energy crisis and the current state of the global economy present the chemical industry with enormous challenges, particularly in Germany. “That’s why our members need a reliable logistics partner capable of ensuring a secure, resilient supply chain—now more than ever,” Nickel says. Both the logistics provider and the association believe their partnership has a bright future. “We greatly appreciate that VCI acknowledges our commitment to logistics for the chemical industry,” Kriegel says with regard to the early five-year extension of the contract. “DACHSER Chem Logistics is a specialized industry solution that offers all the benefits of Dachser’s global logistics network combined with a central pool of expertise specific to chemical logistics. We speak the chemical industry’s language. By investing in the expansion of our network, in digital innovations, and in climate protection, we’re also ideally placed to tackle the challenges of the future.”

Expertise across the board

In 2022, Dachser transported around four million shipments containing chemical products; 1.18 million of those shipments contained dangerous goods. Dachser dovetails the network’s standardized core groupage services—transport, contract logistics, and IT support systems—with service modules tailored to the chemical industry. The logistics provider underpins its dangerous goods expertise with its central dangerous goods management teams for overland transport and air and sea freight, plus some 250 regional dangerous goods safety advisers in its operational branches. Dachser has 23 branches in seven countries ready to handle the storage of hazardous materials. A total of 29 European branches have been evaluated for Safety and Quality Assessment for Sustainability (SQAS) certification by the European Chemical Industry Council (CEFIC). This means that Dachser is ideally placed to continue offering its customers in the chemical industry top-quality logistics services in the future.

German Chemical Logistics Partnership

The German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) and DACHSER Chem Logistics have extended their purchasing partnership in logistics ahead of time by five years. Johann-Peter Nickel, Executive Director at VCI, and Michael Kriegel, Department Head DACHSER Chem Logistics, signed the agreement at Dachser’s Head Office in Kempten.

VCI and Dachser established their purchasing partnership for European groupage logistics back in 2009. As the chemical industry became more and more international, in 2015 the partnership was expanded to include air and sea freight transports. With some 1,900 member companies employing a total of almost 550,000 people in the chemical and pharmaceutical industry and related economic sectors, VCI one of the Germany’s three largest industry associations.

“Dachser is a competent partner for our member companies, one that can handle their European logistics safely with uniform quality standards using its own network while also supplying the intercontinental markets from a single source,” Nickel says in describing the long-standing partnership. Gisa Omlor, who is in charge of the purchasing partnership at VCI, adds: “With some sensitive products and numerous special legal regulations, the chemical industry is very demanding, especially when it comes to logistics. Having a long-standing partner that has the requisite expertise and commitment as well as the ability to communicate with German SMEs as an equal provides crucial added value and a competitive edge.”

Strong partners

The energy crisis and the current state of the global economy present the chemical industry with enormous challenges, particularly in Germany. “That’s why our members need a reliable logistics partner capable of ensuring a secure, resilient supply chain—now more than ever,” Nickel says. Both the logistics provider and the association believe their partnership has a bright future. “We greatly appreciate that VCI acknowledges our commitment to logistics for the chemical industry,” Kriegel says with regard to the early five-year extension of the contract. “DACHSER Chem Logistics is a specialized industry solution that offers all the benefits of Dachser’s global logistics network combined with a central pool of expertise specific to chemical logistics. We speak the chemical industry’s language. By investing in the expansion of our network, in digital innovations, and in climate protection, we’re also ideally placed to tackle the challenges of the future.”

Expertise across the board

In 2022, Dachser transported around four million shipments containing chemical products; 1.18 million of those shipments contained dangerous goods. Dachser dovetails the network’s standardized core groupage services—transport, contract logistics, and IT support systems—with service modules tailored to the chemical industry. The logistics provider underpins its dangerous goods expertise with its central dangerous goods management teams for overland transport and air and sea freight, plus some 250 regional dangerous goods safety advisers in its operational branches. Dachser has 23 branches in seven countries ready to handle the storage of hazardous materials. A total of 29 European branches have been evaluated for Safety and Quality Assessment for Sustainability (SQAS) certification by the European Chemical Industry Council (CEFIC). This means that Dachser is ideally placed to continue offering its customers in the chemical industry top-quality logistics services in the future.

XPO Logistics Rolling out Hunic Exoskeleton

XPO, a leading provider of innovative and sustainable end-to-end logistics solutions across Europe, has successfully completed a pilot trial of Hunic exoskeleton suit safety equipment at specific business sites and will deploy the technology across the UK and Ireland before the end of this year.

The suits were introduced to XPO Logistics network sites and some dedicated warehouses in January, including Crick (Scania), the Leicester shared user warehouse (Samsung), and the Volkswagen Group UK National Parts Distribution Centre in Dordon, Glen Dimplex, and Daimler in Milton Keynes. Current users at each site are helping to train wider groups on how to use the suits.

Hunic Exoskeleton technology assists wearers with heavy lifting duties, ensuring their posture is correct to reduce the chance of injury. It significantly reduced the fatigue felt by those working in the five XPO depots where the suits were tested. Productivity improved as well: After using the suits at the Samsung operations, there was a 15-20% reduction in unloading time.

Ian Fox, head of health and safety – UK and Ireland, XPO Logistics, said: “The feedback from our XPO colleagues using the exoskeletons during the pilot was hugely positive. The wearers reported significantly less fatigue and effort required in the routine handling activities, which has supported the decision to expand the use and invest in the equipment for the benefit of our colleagues. Additionally, we found that the exoskeleton assists in forming good postural habits that will benefit the wearer even while not using the equipment.”

The Hunic Exoskeleton is designed to prevent the wearer from lifting with incorrect posture. It will only allow the body to move in connection with safe manual handling techniques. For example, it will not allow the back to make an incorrect posture movement. The suit helps the wear undertake repetitive lifting safely while also improving turnaround time.”

XPO’s innovative, end-to-end service offerings include technology-enabled logistics, truckload, less-than-truckload, truck brokerage, managed transport, last mile and freight forwarding. The company tailors its solutions to customer-specific needs across consumer, trade and industrial sectors.

XPO Logistics Rolling out Hunic Exoskeleton

XPO, a leading provider of innovative and sustainable end-to-end logistics solutions across Europe, has successfully completed a pilot trial of Hunic exoskeleton suit safety equipment at specific business sites and will deploy the technology across the UK and Ireland before the end of this year.

The suits were introduced to XPO Logistics network sites and some dedicated warehouses in January, including Crick (Scania), the Leicester shared user warehouse (Samsung), and the Volkswagen Group UK National Parts Distribution Centre in Dordon, Glen Dimplex, and Daimler in Milton Keynes. Current users at each site are helping to train wider groups on how to use the suits.

Hunic Exoskeleton technology assists wearers with heavy lifting duties, ensuring their posture is correct to reduce the chance of injury. It significantly reduced the fatigue felt by those working in the five XPO depots where the suits were tested. Productivity improved as well: After using the suits at the Samsung operations, there was a 15-20% reduction in unloading time.

Ian Fox, head of health and safety – UK and Ireland, XPO Logistics, said: “The feedback from our XPO colleagues using the exoskeletons during the pilot was hugely positive. The wearers reported significantly less fatigue and effort required in the routine handling activities, which has supported the decision to expand the use and invest in the equipment for the benefit of our colleagues. Additionally, we found that the exoskeleton assists in forming good postural habits that will benefit the wearer even while not using the equipment.”

The Hunic Exoskeleton is designed to prevent the wearer from lifting with incorrect posture. It will only allow the body to move in connection with safe manual handling techniques. For example, it will not allow the back to make an incorrect posture movement. The suit helps the wear undertake repetitive lifting safely while also improving turnaround time.”

XPO’s innovative, end-to-end service offerings include technology-enabled logistics, truckload, less-than-truckload, truck brokerage, managed transport, last mile and freight forwarding. The company tailors its solutions to customer-specific needs across consumer, trade and industrial sectors.

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