Logistics Sector Begins To Normalise Following Post-Pandemic Surge

Global Logistics sector shows signs of normalisation after post-pandemic boom

• · UPS is the most valuable logistics brand ranked for a decade, valued at USD34.6 billion
• · JR remains strongest logistics brand ranked, followed by JINGDONG Logistics and MTR
• · CPKC’s brand value surges by 28% while DoorDash and dpd trail behind
• · UPS has the highest Sustainability Perceptions Value at USD3 billion and also holds the Highest Positive Gap Value at USD224 million

This year, the logistics industry is showing signs of normalization following the post-pandemic boom, according to a new report by Brand Finance, the world’s leading brand valuation consultancy. Leading logistics brands like UPS and FedEx have reported lower shipment volumes and reduced consumer spending compared to the high-demand periods immediately after the pandemic.

Despite this trend, the Brand Finance Logistics 25 2024 ranking is still led by UPS, which retains its position as the most valuable logistics brand for the 10th consecutive year, with a brand value of USD34.6 billion (down 2%). FedEx follows as the second-most valuable brand, with a brand value of USD28.6 billion (down 1%), and Germany’s DHL is third, valued at USD12.2 billion (down 3%).

Japan-based JR remains the strongest global logistics brand, despite a 14% drop in brand value to USD11.9 billion, earning a AAA rating and a Brand Strength Index (BSI) score of 86.9 out of 100. China’s JINGDONG Logistics (JD Logistics or JDL) is the second strongest, with a 1% rise in brand value to USD3.5 billion, improving its brand strength rating from AA+ to AAA and scoring 85.2 out of 100 in its BSI. MTR ranks third, with a 3% decline in brand value to USD3.5 billion, retaining its AAA- rating and obtaining a BSI score of 83.1 out of 100.

Richard Haigh, Managing Director of Brand Finance commented:

Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index. The study determines the role of sustainability in driving brand consideration across sectors and offers insight into which brands global consumers believe to be most committed to sustainability.

For individual brands, the Index displays the proportion of brand value attributable to sustainability perceptions. This Sustainability Perceptions Value is the financial value contingent on a brand’s reputation for acting sustainably. From here, Brand Finance’s perceptual research is analysed alongside CSRHub’s environmental, social and governance performance data to determine a brand’s ‘gap value’. This is the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance.

The 2024 Sustainability Perceptions Index finds that in the logistics sector, UPS has the highest Sustainability Perceptions Value of USD3 billion and the highest positive gap value of USD224 million among brands in the rankings. A positive gap value means that brand sustainability performance is stronger than perceived: brands can add value through enhanced communication about their sustainability efforts, so that perceptions are raised to fully account for the brand’s actual sustainability performance. UPS’s gap value suggests that it could generate an additional USD224 million in potential value through enhanced communication of its impact and accomplishments in sustainability.