The global dangerous/hazardous goods logistics market is characterized by the presence of many global, regional, and local companies. The market is highly fragmented in nature. The tier-1 players have vertically integrated operations, right from warehousing, value-addition, to transportation and customer-supply operations, which gives them a competitive edge. Also, some companies collaborate with transportation, shipping containers, and packaging companies to ensure a smooth distribution of dangerous products. Moreover, these companies have safety certifications of their respective countries which further ensures safe & secure transportation of hazardous goods.
The leading player in terms of number of key developments in the global dangerous/hazardous goods market are Hellmann and Suttons Groups with two and three key developments respectively.
Threat Of New Entrants
The dangerous/hazardous goods logistics market is fragmented with large presence of well-established and small-scale domestic players operating across the globe. High capital investment in warehousing, transportation-domestic as well as international, and packaging costs, is likely to hinder the entry of new incumbents. In addition, presence of stringent regulations pertaining to the supply of dangerous goods is further expected to limit the entry of entrants.
Bargaining Power of Suppliers
There is a moderate presence of suppliers of dangerous goods shipping containers, tanks, packaging boxes, labelling products, etc. Customers rely on specific shipping containers such as refrigerated or insulated containers to ship specific goods, to ensure high safety. This results in a moderate bargaining power of suppliers. Also, the logistic companies sign long-term supply agreements with container and packaging companies to ensure smooth inventory.
Bargaining Power of Buyers
The bargaining power of buyers is moderate to high due to the presence of large number of dangerous goods logistic companies to choose from. Additionally, brand loyalty of well-established companies results in a moderate bargaining power of buyers.
Threat of Substitutes
There are no direct substitutes for dangerous/hazardous goods logistics market.
Intensity of Rivalry
The market is fragmented with a presence of few established players such as DSV, DHL, DB Schenker, Bollore Logistics, etc. These players have strong brand image which intensifies the rivalry among them. Geographic footprint and strong distribution network of well-established players is further expected to intensify the competition. Also, these companies are emphasizing on collaboration and partnership agreements with other warehousing and packaging companies, thus strengthening their market position.
