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Specialist cargo offers financial incentive

By: Chris Taylor
16 December 2011

Logistics companies are rapidly diversifying the kinds of cargo they can handle in search of greater profit margins, reports CargoNewsAsia.com.

Specialist cargo, such as that from electronic components suppliers or biochemical firms, requires a more delicate touch than transporting a pallet of food goods, therefore, logistic operators are able to charge a premium for their safe delivery.

Andreas Baader at consultancy Barkawi Management Consultants, whose firm focuses on supply chain and after sales services, confirmed to Reuters that "speciality freight always has a higher margin."

Pharmaceuticals for example are a challenge for even those with an extensive amount of logistics training. Some drugs, like biotech ones, are tolerant to a tighter range of temperatures than traditional chemical drugs, meaning that they need to be transported in specialised temperature-controlled vehicles. This industry alone is is estimated to grow at an annual rate of about 10 percent through 2015.

Other industries tipped to boom are green ones, Baader says: "If you can transport wind turbines [for example], you are doing pretty well. There are only about 10 to 15 companies that are specialised in wind turbines."

Despite predictions that global trade growth may slow, those who turn to these specialised freights are the most likely to prosper concluded Baader.

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