UPS continues to be best logistics brand: Brand Finance

Maersk fastest-growing logistics brand with a 53% year-on-year brand value growth

Update: 2023-10-01 06:52 GMT
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UPS tops the Brand Finance Logistics 25 2023 ranking despite an eight percent year-on-year brand value decrease to $35.4 billion.

"FedEx follows as the world’s second-most valuable logistics brand with a 11% increase to $28.9 billion. Japan's JR is third with a 12% brand value increase to $13.8 billion."

UPS experienced comparatively lower projected financial growth this year, leading to a negative influence on its brand value. "Various factors contributed to this outcome, including rising inflation, a global recession, and persistent supply chain challenges. Despite challenges, UPS has made significant improvements in its operations and services, which may help mitigate the economic and geopolitical challenges it continues to face."

UPS also faced labour issues, and business shifted to other logistics players. UPS finally agreed to a nearly $30 billion deal with Teamsters, and existing full-time and part-time UPS Teamsters will get $2.75 more per hour in 2023, and $7.50 more per hour over the length of the contract. UPS reported a 21 percent decline in operating profit to $2.8 billion for Q22023.

Richard Haigh, Managing Director, Brand Finance says: "The logistics sector witnessed an unprecedented rise in online shopping during the pandemic as restrictions necessitated a shift in consumer behaviour. While we have observed a moderation in this trend due to the gradual easing of the pandemic and the return of some consumers to offline shopping, the shift towards e-commerce is expected to persist, albeit not at the same accelerated rate experienced during the height of the pandemic. Although there are hard times ahead, logistics brands can anticipate that this continued transition to online retail could serve as a driving force in sustaining revenue growth within the e-commerce segment, thereby offering some respite amidst the prevailing geopolitical challenges faced by the industry."

Maersk fastest-growing logistics brand
Globally integrated logistics brand Maersk achieved a 53 percent year-on-year brand value growth, taking it to $7.4 billion. "The brand achieved record revenues this year with forecasts increasing in a similar manner. Maersk has now more than doubled (up 121 percent) in brand value from its pre-pandemic level. Maersk has expanded its air cargo business, and has also acquired LF Logistics, the brand’s most consequential acquisition to date, further enhancing its footprint in Asia.

"This has boosted Maersk’s logistics business revenue and increased its warehouse footprint to six million sq.m across more than 452 warehouses. This is a significant milestone in Maersk’s strategic ambition to connect and simplify its customers’ global supply chains by offering integrated end-to-end logistics."

JR strongest logistics brand
JR became the strongest logistics brand in 2023 with a brand strength index score of 87 out of 100 and AAA rating. "JR plays a crucial role in the advancement of Japan's primary transportation networks and infrastructure. Consequently, it has garnered an exceptional level of brand equity within Japan. The company enjoys a high awareness score of 95.10 out of 100, and it also boasts a high reputation score of 8.01 out of 10."

JD Logistics highest on sustainability perceptions score
Chinese brand JD Logistics has the highest sustainability perceptions score in the ranking – 5.51 out of 10 as it looks to counter the sector’s high emissions and increase sustainability perception among consumers.

"In addition to being the most valuable logistics brand, UPS also has the highest perceptions value – $2.7 billion. UPS’ position at the top of the sustainability perceptions value table is not an assessment of its overall sustainability performance. It rather indicates how much brand value UPS has tied up in sustainability perceptions."


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