Diverging European logistics markets

Freight volumes processed across main European logistics markets have recovered most of post-COVID declines but remain below pre-COVID levels. Importantly, a wide spread has emerged in activity compared to the relatively even growth pattern pre-COVID. The chart illustrates the distribution of market activity for top 25 markets measured as freight volumes (benchmarked to 100 pre-COVID); average, 75th/25th and 90th/10th percentile ranges respectively, both of which have roughly doubled. The pace of recovery has stagnated at least as of now, which implies that investors will need to become more selective in their allocations to the sector and consider specific geolocation dynamics to a higher extent in the next phase of the cycle.

Kania Advisors tracks logistics activity for over 1,000 freight handling locations across Europe and North America and transport traffic on main highways to identify favourable asset level geolocations and aggregate market level dynamics. For information please contact info@kaniaadvisors.com

About Kania Advisors

Kania Advisors is an independent research and advisory firm focused exclusively on institutional real assets allocations and investment programmes. We provide advice and solutions to improve outcomes in real assets investment programmes. We conduct detailed industry research and custom studies typically focused on quantitative analysis and provide insights which form a critical part of a client's decision process.