Dive Brief:
- UPS has been named the world's most valuable logistics brand for the fourth year in a row with a total brand value of $22 billion, according strategy consultancy Brand Finance.
- FedEx is the second most valuable logistics brand, with a value of $18.2 billion. The company's value grew 6% from the previous year.
- Other logistics providers in the top 10 include DHL, Japan Railways, Union Pacific and CSX. Generally, brand valuation was stagnant in 2017, with the top six showing only a 0.2% aggregate growth.
Dive Insight:
It's no surprise a company that once used "We Love Logistics" as its tagline is the most valuable logistics brand in the world. Despite holding the top spot several years in a row, however, UPS' growth is stagnant. In fact, its value decreased by 1% in 2018.
UPS' profits dipped last year, even with high demand for e-commerce, although the company could recuperate losses, given its long-term investments in its supply chain and an electric fleet.
World’s 10 Most Valuable Logistics Brands
| 2018 Rank | Brand Name | Brand Value (USD billions) | % Change From 2017 |
|---|---|---|---|
| 1 | UPS | 22.0 | -1% |
| 2 | FedEx | 18.2 | 6% |
| 3 | Japan Railways | 11.1 | -9% |
| 4 | DHL | 10.7 | 5% |
| 5 | Union Pacific | 7.9 | -2% |
| 6 | McLane Co. | 4.9 | 0% |
| 7 | Poste Italiane | 4.8 | 20% |
| 8 | CN | 4.4 | 16% |
| 9 | Deutsche Post | 4.3 | 29% |
| 10 | CSX | 4.0 | 4% |
Supply Chain Dive/Brand Finance
Overall, however, growth was sluggish in the logistics sector. The top six brands saw aggregate value growth of just 0.2%, not a promising number for an industry with high demand that also is facing numerous disrupters.
"Powerful brands alone will not be enough to prevent Amazon from gaining a foothold in the industry," Richard Haigh, Managing Director of Brand Finance, said in the release.
Another potential disruptor, much more unforeseen than Amazon, is be Hong Kong's public transport brand, MTR. Brand Finance ranked it the strongest brand this year and 18th most valuable. The brand is renowned worldwide for its high quality, efficient transit system.
At this time, most analysts don't believe Amazon has the logistics infrastructure to compete on a high level with UPS or FedEx. But MTR has an established and reliable network, giving it the potential to break into the top 10.
If growth plateaus among top logistics providers, they won't be the top brands for much longer.
