Thanks to a COVID-19 pandemic-led supply and demand imbalance, most logistics operators have witnessed solid demand worldwide. In addition, record freight demand for consumer goods due to capacity shortages and port congestion is helping logistic companies increase their profits.
Investors’ interest in the logistics stocks is evident in the SPDR S&P Transportation ETF’s (XTN) 3.4% gains over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 1.6% loss. Furthermore, the increasing adoption of IoT-enabled linked devices and tech-driven logistics services are expected to drive the logistic industry’s growth in the coming months. According to a report by Valuates Reports, the global logistics market is expected to grow at a 6.5% CAGR through 2027.
