Market Trends of nordics courier, express, and parcel (cep) Industry
Sweden's port of Gothenburg leads with 51% market share handling 828,000 TEUs
- The Nordic transportation and storage sector saw a substantial YoY increase, rising from 11.57% to 19.71%, due to Nordic countries' strong rankings in the Logistic Performance Index and their excellent trade infrastructure. Among these nations, Sweden stands out as the primary contributor to the sector's GDP. Sweden's robust high-income economy has fostered a modern and technologically advanced transportation industry, with Gothenburg emerging as a prominent logistics hub, supported by the Port of Gothenburg and new logistics facilities. The Port of Gothenburg, Sweden's largest, has consistently gained a larger market share, growing from 48% to 51% in 2021 and handling 828,000 TEUs.
- The expansion of cold storage is due to the expansion of the global or European trade market. Companies are relying more on cold storage warehouses to extend the life of a product. However, the logistics market in Sweden is the largest in the Scandinavia region. Investments in infrastructure have made the country one of the top logistics markets in Europe. GDP (nominal) from transport in Sweden increased to USD 4.62 billion in the first quarter of 2022 from USD 4.47 billion in the fourth quarter of 2021.
- The Danish government has unveiled Denmark Forward, a new plan to invest DKK 160 billion (USD 22.96 billion) in infrastructure through 2035. The plan is in place to improve the national road and railway systems, which will benefit both people and businesses. In recent years, Norway's public investment in transportation has significantly increased, which could have significant economic benefits, especially since good transportation infrastructure can aid in Norway's transition away from oil-related activities. However, effective methods for choosing and completing projects are needed in order to realize these gains.
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Owing to the impact of the Russia-Ukraine war on fuel prices globally, fuel prices in the Nordic countries are rapidly increasing
- In 2021, a liter of diesel was more expensive in Sweden, from SEK 0.15 (USD 0.014) increase to SEK 19.37 (USD 1.85). The reason for the hikes was a global rise in market prices for oil, which is currently at a three-year high. Diesel was particularly affected because it is an expensive fossil fuel with more biofuels than others and due to policies aimed at protecting the environment. In 2022, the price continuously increased due to the increased demand for diesel. The Ukraine-Russia war also impacted the fuel price globally however, the government has adopted a reduced energy tax on diesel and gasoline.
- The average value for gasoline in Finland from May to August 2022 was EUR 2.33 (USD 2.48), with a minimum of EUR 2.11 (USD 2.25) on August 15, 2022, and a maximum of EUR 2.54 (USD 2.71) on June 13, 2022. The average value for gasoline in Denmark from May to August 2022 was DKK 17.29 (USD 2.48), with a minimum of DKK 15.47 (USD 2.22) on August 8, 2022, and a maximum of DKK 18.97 (USD 2.72) on June 6, 2022. The average value for gasoline in Iceland from May to August 2022 was ISK 330.43 (USD 2.32), with a minimum of ISK 303.34 (USD 2.13) on May 9, 2022, and a maximum of ISK 345.71 (USD 2.43) on June 13, 2022.
- The average value for gasoline in Sweden from May to August 2022 was SEK 22.06 (USD 2.11), with a minimum of SEK 19.94 (USD 1.90) on August 1, 2022, and a maximum of SEK 24.14 (USD 2.31) on June 6, 2022. The average value for gasoline in Norway from May to August 2022 was NOK 24.63 (USD 2.35), with a minimum of NOK 21.71 (USD 2.07) on April 25, 2022, and a maximum of NOK 26.93 (USD 2.57) on June 6, 2022.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The Nordic region's population witnessed 0.49% YoY growth in 2021 and is projected to achieve a 9.7% increase by 2030
- The oil and gas, mining, and quarrying sector contributes the highest to economic development in the region, led by Norway
- E-commerce in the region is expected to register a CAGR of 8.67% during 2023-27, supported by rising social commerce
- Nordic countries registered substantial export growth in 2022, driven majorly by fuel exports
- Finland ranked 2nd in the Logistics Performance Index due to its extensive rail network connectivity of 1.07 meters
- Nordic countries are working toward transforming the regional economy with a focus on sustainable manufacturing
- Ukraine's invasion by Russia sharply impacted Nordic PPI and CPI
- The manufacturing industry accounts for more than 50% of the exports from Nordic countries
- The Nordic region registered growth in imports in 2022, led by high imports of food, machinery, and transport equipment
- Denmark's ambitious USD 22.95 billion investment is expected to drive green transportation by 2035
