In this article, we are going to share with you a list of the 25 biggest logistic companies in the world. If you want to skip our comprehensive analysis on these companies, go directly to the 5 Biggest Logistics Companies in the World.
Logistics is the process that defines the coordination, allocation, and management of goods from a point of origin to a destination. Logistics is the key player when it comes to efficient and effective transportation, as well as storage of goods and services. The responsibilities of logistics companies are not as trivial as most people think. Logistics companies don't only transport things from one place to another. They also have to optimize procedures that include, but are not limited to, supply chain, production, packaging, inventory management, warehousing, security, material handling, inbound and outbound transportation, and integration of information. Companies like FedEx Corporation (NYSE: FDX), United Parcel Service (NYSE: UPS), and XPO Logistics, Inc. (NYSE: XPO) are not just responsible for getting your parcels to your doorstep, but much more.
Like all industries, the logistics industry suffered a major blow with the advent of Covid-19. Before the coronavirus pandemic, the logistics sector was critical for manufacturing industries. China was the most affected manufacturing hub. Supply chains were disrupted as lockdowns and travel restrictions were enforced. In India, the onset of Covid-19 led to a scarcity of drivers, which resulted in containers piling up on ports. According to the World Bank’s reports, in China, from January to February the trucking sector volumes fell below 15% of the volumes recorded in 2019, and recovery was not seen until March of 2020. In April of 2020, global airfreight rates peaked as restrictions were placed on air travel and global airfreight capacity saw a decline of 38.7%.
Despite the implications of Covid-19, the logistics industry is projected for growth and recovery. The true value of the global logistics industry falls in the range of $8 to $12 trillion. According to a report published by Allied Market Research, the global logistics market was worth $7.6 trillion in 2017 and is expected to reach $12.9 trillion by 2027, which gives it a compound annual growth rate (CAGR) of 6.5%. Researchers at Armstrong and Associates Inc. valued the global logistics industry at $9.6 trillion in 2018. In the United States, the logistics market borders on $2 trillion currently. Armstrong and Associates Inc. estimates show that the logistics sector contributed 8% to the United States’ GDP in 2019, and 10% to the global GDP.
New Trends in the Logistics Industry
The growth of the logistics industry stems from the fact that logistics companies are heavily involved in incorporating new technology to better their services. Logistics companies are making use of the internet of things (IoT) which is stepping up the tracking game. Now it is possible to track packages in real-time and know their instantaneous location. Artificial Intelligence and machine learning algorithms are enhancing the way these companies deal with tedious information processing. The use of robotics for automating warehouses has stripped logistics companies of wasting human resources on mundane tasks. Automating warehouse procedures can help companies cut down their operational costs. Autonomous vehicles are now a reality and this gave rise to smart self-driving trucks, which are free from human errors and can predict traffic conditions and devise optimum, traffic-free routes. FedEx Corporation (NYSE: FDX) developed the FedEx SameDay Bot to help make last-mile deliveries.
Photo by Shaah Shahidh on Unsplash
Our Methodology
To compile this list of the 25 biggest logistic companies in the world, we made use of three evaluation measures: market capitalization, number of employees, and net revenues generated. The metrics are listed in their order of importance, with the market capitalization, which represents a company’s worth on the open market, being the most important metric. The number of employees comes second since it hints at the size of a company; the higher the number of employees, the bigger the organization. The net revenues generated by a company help determine the cash flow for an organization. For our list, we focused on pure logistics firms, those that are responsible for the transportation and delivery of goods and not retail businesses that provide logistic services for their business only. We sourced market capitalization from Yahoo Finance and Google Finance, while the other two metrics were taken from official company reports.
So without further ado, let’s dive into our list of the 25 biggest logistics companies in the world.
25. Blue Dart Express Limited (NSE: BLUEDART.NS)
Headquartered in Mumbai, Blue Dart Express is an Indian logistics services company that has over 12000 employees and generates over $450 million in revenues. It has an airline subsidiary as well which goes by the name of Blue Dart Aviation. Blue Dart is worth $1.84 billion on the open market.
24. Hub Group, Inc. (NASDAQ: HUBG)
Hub Group, Inc. (NASDAQ: HUBG) is a company that provides supply chain, transportation, and logistics services. The company has 58 locations but is based in North America. Hub Group, Inc. (NASDAQ: HUBG) generates over $3.5 billion in net revenues, has over 5000 employees, and is worth $2.4 billion on the open market.
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In its Q1 2021 investor letter, Diamond Hill Capital highlighted a few stocks and Hub Group Inc. (NASDAQ:HUBG) is one of them. Here is what the fund said:
"Freight transportation management company Hub Group, Inc. (Cl A) outperformed after it reported strong quarterly earnings and highlighted company-specific cost reduction opportunities for 2020, which should help partially offset expected weakness in volumes and revenues due to the economic impact of COVID-19.”
23. CJ Logistics Corporation (KRX: 000120)
CJ Logistics is a supply chain and logistics firm based in Seoul, the capital of South Korea. They have over 10,000 employees and have a market capitalization of $3.65 billion.
22. Schneider National, Inc. (NYSE: SNDR)
Schneider National, Inc. (NYSE: SNDR) is a transportation and logistics company that provides services for cross-dock logistics, intermodal, long-haul, supply chain management among others, throughout the United States, Canada, North America, and China. The company has its corporate headquarters in Green Bay, Wisconsin.
The number of employees at Schneider National, Inc. (NYSE: SNDR) as of 2021 are above 15,000. It generated revenues up to $4.5 billion. The market capitalization for Schneider National, Inc. (NYSE: SNDR) stands at a $3.88 billion figure.
21. Ryder System, Inc. (NYSE: R)
At number 21 in our list of the 25 biggest logistics companies in the world, we have Ryder System, Inc. (NYSE: R). Ryder is a leading American logistics company that is known for its services in fleet management, supply chain management, and dedicated transport management. It has its headquarters in Miami, Florida. Ryder System, Inc. (NYSE: R) has operations throughout the United States, Mexico, Canada, and the United Kingdom. It has over 36,000 employees who manage its fleet of over 240,000 vehicles and 50 million square feet of warehouse space spread over more than 300 warehouses. Ryder System, Inc. (NYSE: R) generated revenues up to $8.9 billion in 2019 and is currently worth $3.95 billion on the open market.
Like FedEx Corporation (NYSE: FDX), United Parcel Service, Inc. (NYSE: UPS), J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), Expeditors International of Washington, Inc. (NASDAQ: EXPD) and Schneider National, Inc. (NYSE: SNDR), Ryder System, Inc. (NYSE: R) is one of the biggest logistics companies in the world.
20. Hitachi Transport System, Ltd. (TYO: 9086)
Hitachi Transport System is a Japanese logistics company that provides services like third-party logistics (3PL), inventory control, warehousing and we can go on. The company has over 43,000 employees and a market capitalization of $4.16 billion which merits its inclusion in our list of the 25 biggest logistics companies in the world.
19. Mainfreight Limited (NZE: MFT)
Mainfreight is a publicly-traded logistics company headquartered in Auckland, New Zealand. It is also one of the biggest freight companies in New Zealand and provides services that deal with providing and supplying freight, warehousing, and logistics. Mainfreight has over 260 locations spread out all across the globe, has over 8000 employees, and generated over $2 billion in revenues in 2019. Even though it has a relatively low number of employees as compared to Ryder System, Inc. (NYSE: R), it bests it by having a market capitalization of $5.37 billion which merits its 19th position in our list of the 25 biggest logistics companies in the world.
18. Sinotrans Limited (HKG: 0598)
Sinotrans is one of the largest logistics services companies in China, with its corporate headquarters in Beijing. As of 2021, Sinotrans has over 35,000 employees and a market capitalization of $5.4 billion.
17. Kerry Logistics Network Limited (OTC: KRRYF)
Kerry Logistics provides services in freight forwarding, warehousing, supply-chain management solutions, and third-party logistics. The company has its corporate headquarters in Hong Kong and over 42,000 employees that serve worldwide.
Kerry logistics generated over $2.8 billion in revenues in 2020. The company went public in the fall of 2013 and is currently worth $5.62 billion on the open market.
16. Hyundai Glovis Co., Ltd. (KRX: 086280)
Hyundai Glovis is a South Korean logistics company headquartered in Seoul. The company is a part of the Hyundai Kia Automotive Group. It provides domestic and international services for transportation, logistics consulting, storage, and vehicle logistics. With only about 7000 employees, the company generates revenues up to $14.8 billion and has a market capitalization of $6.75 billion.
Like FedEx Corporation (NYSE: FDX), United Parcel Service, Inc. (NYSE: UPS), J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), Expeditors International of Washington, Inc. (NASDAQ: EXPD) and Schneider National, Inc. (NYSE: SNDR), Hyundai Glovis is one of the biggest logistics companies in the world.
15. Nippon Express Co., Ltd. (TYO: 9062)
Nippon Express is a global logistics company with its headquarters in Tokyo, Japan. The company provides logistics and transportation services that include door-to-door parcel delivery, freight transportation via its road, rail, marine, and air transportation networks, international intermodal transportation among others.
Nippon Express has over 73,000 employees, claims annual revenues of up to $18.9 billion, and has a market capitalization of $7.15 billion which brings it at number 15 in our list of the 25 biggest logistics companies in the world.
14. Nippon Yusen Kabushiki Kaisha (TYO: 9101)
Nippon Yusen KK is a Japanese company that provides services in logistics and transportation. It is worth $7.97 billion on the open market.
13. C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW)
C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) is one of the world's largest logistic platforms to date, providing services in third-party logistics and multimodal transportation. Its corporate headquarters are set up in Minnesota, United States. C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) has a consumer base of more than 100,000 clients, served by more than 15,000 employees spread out over 300 locations.
C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) stands at number 13 in our list of the 25 biggest logistics companies in the world, boasting annual revenues of more than $16 billion and a market capitalization of $12.6 billion.
12. XPO Logistics, Inc. (NYSE: XPO)
XPO Logistics, Inc. (NYSE: XPO) is an American logistics services provider that provides pivotal supply chain solutions to more than 50,000 customers worldwide. Among its 50,000 customers are more than 60 Fortune 100 companies. XPO Logistics, Inc. (NYSE: XPO) earned first place on the Fortune 500 transportation and logistics companies, dominating the logistics industry for 5 years in a row.
XPO Logistics, Inc. (NYSE: XPO) has about 140,000 employees that serve in its more than 1600 locations spread over 30 countries. The company generated $16.2 billion in annual revenues in 2020, which earned it a place among the top 200 in the Fortune 500 overall. On the open market, XPO Logistics, Inc. (NYSE: XPO) is worth $15.75 billion, which merits its inclusion in our list of the 25 biggest logistics companies in the world.
Like FedEx Corporation (NYSE: FDX), United Parcel Service, Inc. (NYSE: UPS), J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), Expeditors International of Washington, Inc. (NASDAQ: EXPD) and Schneider National, Inc. (NYSE: SNDR), XPO Logistics, Inc. (NYSE: XPO) is one of the biggest logistics companies in the world.
Adestella Investment Management, in their Q4 2020 investor letter, mentioned XPO Logistics, Inc. (NYSE: XPO). Here is what the fund said:
"XPO Logistics (XPO) – the XPO thesis was very simple, but it proved very successful. As the stock irrationally sold off in the spring and made only a tepid recovery in the following months, we were able to buy into a well-operated business with plenty of growth drivers at a compelling price. Sentiment surrounding the company improved thanks to a strong earnings, the resumption of asset sale plans that had been shelved in the spring, and the announcement of a spinoff to unlock the SOTP value. As the stock approached our estimate of a $115 fair value, we exited with more than a clean double from our cost basis.”
11. J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT)
J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) is an American, fortune 500 company that provides transportations and logistics services. It is also one of the logistics giants in North America. J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) competes with FedEx Corporation (NYSE: FDX), C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW), and Hub Group, Inc. (NASDAQ: HUBG).
Having over 30,000 employees, J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) boasts annual revenues of $9.6 billion and a market capitalization of $17.9 billion.
10. Expeditors International of Washington, Inc. (NASDAQ: EXPD)
Expeditors International of Washington, Inc. (NASDAQ: EXPD) is an American global logistics services and freight forwarding company with its corporate headquarters in Seattle, Washington. The company has more than 18,000 employees that serve in its more than 250 locations.
Expeditors International of Washington, Inc.'s (NASDAQ: EXPD) main competitors are J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), United Parcel Service, Inc. (NYSE: UPS), C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) and, a lot of others that we mentioned in our list.
The market capitalization for Expeditors International of Washington, Inc. (NASDAQ: EXPD) is an astounding $21.6 billion that ranks it at number 10 in our list of the 25 biggest logistics companies in the world.
9. ZTO Express (Cayman) Inc. (NYSE: ZTO)
ZTO Express (Cayman) Inc. (NYSE: ZTO) was founded in 2002 and has its corporate headquarters in Shanghai, China. ZTO Express (Cayman) Inc. (NYSE: ZTO) is a provider of express delivery and value-added logistic services. As of 2021, ZTO Express (Cayman) Inc. (NYSE: ZTO) has over 22,000 employees and a market capitalization of $24.4 billion.
8. Old Dominion Freight Line, Inc. (NASDAQ: ODFL)
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) is a leading American transport and logistics services company headquartered in North Carolina, United States. It offers logistics services for regional, inter-regional and national routes. Old Dominion Freight Line, Inc. (NASDAQ: ODFL) has over 20,000 employees and boasts a market capitalization of $30 billion.
Like FedEx Corporation (NYSE: FDX), United Parcel Service, Inc. (NYSE: UPS), J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), Expeditors International of Washington, Inc. (NASDAQ: EXPD) and Schneider National, Inc. (NYSE: SNDR), Old Dominion Freight Line, Inc. (NASDAQ: ODFL) is one of the biggest logistics companies in the world.
Wedgewood Partners, in their Q1 2021 investor letter, mentioned Old Dominion Freight Line, Inc. (NASDAQ: ODFL). Here is what the fund said:
"We first bought shares of Old Dominion Freight Line in the third quarter 2018. Worried over the impact of the unfolding industrial downtown on the trucking industry, we sold the stock shortly thereafter during the second quarter of 2019. That was a mistake. We were correct to be worried about the trucking industry in 2019, but we were very wrong on how resilient Old Dominion’s business model would power through the industry downturn in 2019, as well as the Company’s exceptional performance during pandemic-laden 2020. Bucking the industry, the Company actually grew earnings per share by +3.8% and +11.4% in 2019 and 2020, respectively. Licking our wounds, we are shareholders once again in this terrific Company.
Old Dominion Freight Line has been a family run business for decades. Old Dominion was founded in 1934 in Richmond, Virginia by Earl and Lillian Congdon, running a single truck between Richmond and Norfolk. The founding year was fortuitous as the U.S. economy was in the early innings of its slow recovery from the Great Depression. The trucking industry boomed during the first half of the 1940s because of new congressional industry regulations and World War II armament spending..." (Click here to see the full text).
7. Kuehne + Nagel International AG (SWX: KNIN)
Kuehne + Nagel International AG is a global transport and logistics services company headquartered in Switzerland. It boasts a market capitalization of $42.2 billion which places it at number 7 in our list of the 25 biggest logistics companies in the world.
6. S.F. Holding Co., Ltd. (SHE: 002352)
S.F. Holding Co. is a Chinese MNC that provides logistics services. It is the second-largest courier service in China and boasts a market capitalization of $47.5 billion.
Like FedEx Corporation (NYSE: FDX), United Parcel Service, Inc. (NYSE: UPS), J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT), Expeditors International of Washington, Inc. (NASDAQ: EXPD) and Schneider National, Inc. (NYSE: SNDR), S.F. Holding Co is one of the biggest logistics companies in the world.
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Disclosure: None. 25 Biggest Logistics Companies in the World is originally published on Insider Monkey.
