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Nov.10, 2014

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Page 60 of 79 THE JOURNAL OF COMMERCE 61 TOP 50 GLOBAL TRANSPORTATION PROVIDERS SPECIAL REPORT COMBINED GROWTH AMONG the 50 largest transportation and logistics companies worldwide slowed to a halt in 2013 amid global economic uncertainty. The combined revenue of the 50 companies slipped 0.1 per- cent after increasing 2.6 percent in 2012 and 8.4 percent in 2011. The total revenue of the world's larg- est parcel carriers, logistics providers, ocean carriers and rail, intermodal and trucking operators declined $478 mil- lion in 2013 to $655.1 billion, according to transportation research and advisory firm SJ Consulting Group. The flat-lining of Top 50 revenue ref lects stunted and uneven global economic growth in 2013, the impact of fluctuations in currency value and decelerating g rowth in emerging economies such as Brazil and China. Advanced economies, still feeling the pain of the 2008 global financial crisis, faced high debt burdens and unem- ployment in 2013. Adjusting for foreign exchange fluctuations, the combined revenue of the world's largest logistics and trans- portation companies rose 2.2 percent, according to SJ Consulting. "Currency changes mask the quality in some com- pany results," President Satish Jindel said. For example, several Japanese companies that lost revenue in U.S. dollars saw revenue increase before conversion from the Japanese yen, according to the research firm. "Currency-adjusted growth was 2.2 percent and global gross domes- tic product grew 2.2 percent in 2013, which shows a strong correlation between what's going on with the global economy and these companies," said Michael Scheid, a senior analyst for SJ Consulting. The good news is global growth has strengthened this year, and 2015 looks even better, according to the Interna- tional Monetary Fund. The IMF expects global GDP to grow 3.3 percent in 2014 and 3.8 percent in 2015. GDP growth in advanced economies should rise from 1.8 percent in 2014 to 2.3 percent in 2015, aided by a stronger U.S. economy. The 2013 list is the third annual ranking of the Top 50 Transporta- tion and Logistics Companies by SJ Consulting and The Journal of Com- merce. The list ranks companies from five continents by revenue and provides GROWTH , INTERRUPTED Economic uncertainty flattened expansion among the largest transportation and logistics firms in 2013, but it's likely to be a brief pause By William B. Cassidy

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