Global logistics costs continue to trend upward

Logistics Costs to Climb by $320 Billion Annually

Over recent years, companies worldwide have implemented various strategies to trim logistics expenses, streamline operations, and adapt to market fluctuations. Technologies like automation, improved inventory management, optimized multimodal transportation, and a shift toward green logistics have achieved notable results. However, global logistics costs remain substantial.

Key factors such as increasing demand for goods, supply chain disruptions, labor shortages, and rising fuel prices continue to drive up logistics expenditures. A survey by Statista Market Insights reveals that businesses globally will allocate $12.8 trillion to logistics in 2024, a $330 billion rise from 2023.

Statista forecasts that global logistics spending will continue to grow by an average of $320 billion annually, resulting in an additional $1.8 trillion by 2029. After reaching $12.8 trillion in 2024, logistics costs will rise to $13.5 trillion within two years and approach $14.4 trillion by 2029.

China and India to Lead in Logistics Cost Growth

Although rising costs will affect the entire logistics market, there are notable disparities among countries. Statista data indicates that while all major logistics markets face double-digit growth, China will experience the highest cost increase.

By 2029, China’s total logistics market costs are projected to surge by 17%, reaching $3.88 trillion—27% of the world’s total logistics spending. India, the third-largest logistics market, follows closely with a 14.6% increase, bringing its logistics expenditure to $601.7 billion over the next five years.

The U.S. market is expected to grow by 10.5%, raising logistics costs from $2.2 trillion in 2024 to $2.42 trillion in 2029. Meanwhile, Japan and Russia will each see approximately 10% growth during this period, with logistics expenditures reaching $466 billion and $442 billion, respectively, by 2029.