OREANDA-NEWS. November 8, 2010. UVK made analysis of Ukrainian logistic services market as part of preparation of its development strategy program for 2011-2013. The analysts studied performance indicators for the first half of 2010, market trends, and forecasts of industry experts.

UVK experts placed priority emphasis on the market’s statistical indicators.

Thus, according to the State Statistics Committee, in transport logistics sphere in January-June 2010 the carriers (including private enterprises) achieved freight turnover of 17.7 billion t/km, which is 16.7% more than a year ago.

As for the warehouse logistics, number of warehouse rentals in the first half of 2010 grew by 3-5%. According to UVK Development Department, as of today, rental rates for class A and B storage facilities have finally stabilized at the average level of USD 5-6 per sq.m per month. The company experts do not expect substantial changes on the warehouse market by the end of 2010: rental rates will remain at the current level.

Assessing development trends of the logistics market, particularly contract logistics, UVK experts arrived at the conclusion that the share of logistics outsourcing is rising. But at the same time, large international companies continue a standard practice of contracting professional logistics operators to handle storage, transportation, and processing of their products, while small and medium businesses only begin to realize all (first of all, economic) benefits of outsourcing. Therefore, share of outsourcing in the Ukrainian logistics industry remains low – several times lower than in European countries and the United States.

We at UVK incline toward positive logistics market development forecasts. The logistics continue to be an attractive sector of economy for investors. Despite the bankruptcy and change of management in several logistics companies in a short span of time, the overall turnover in the contract (comprehensive, 3РL) logistics segment in Ukraine continues to grow. The main underlying reason for this positive development is the transition of a whole number of retail and production and retail companies to the outsourcing of their ancillary, including logistics-related, business functions.