Logistics in Germany

World Bank Logistics Performance Index (LPI) 2023: Germany has been a consistent top performer since 2012 and ranks third overall in a 2023 comparison of 139 countries - only Singapore and Finland score higher.

Germany is Europe’s largest economy and the third largest exporting and importing nation 
worldwide.

Germany has Europe’s greatest number and density of freight villages. Freight villages provide medium-sized companies with an excellent opportunity to integrate logistic services and cost-effectively meet market requirements by cooperating with suitable partners.

Germany’s logistics market employs over 3.3 million people and is home to both global players (including Deutsche Post World Net, DHL, Schenker and Dachser) and small and medium-sized companies alike. It offers fast and flexible logistics services with trade-specific solutions and expertise in all logistics segments.
 

Opportunities

Germany's logistics industry is vital to its economy – given its central location in Europe and its status as a global trade hub. The sector offers a variety of investment opportunities, particularly thanks to ongoing technological advancements and shifts in global supply chain dynamics. 

Key Investment Segments

Digitalization and Smart Logistics
Digitalization in the form of the Internet of Things (IoT) and  artificial intelligence (AI) and blockchain technologies is transforming the logistics landscape. This is providing investment opportunities for companies offering real-time tracking, predictive analytics and supply chain optimization solutions such as fourth-party logistics service providers (4PLs).

Green and Sustainable Logistics
Increasing regulatory pressure and consumer demand to lower carbon emissions call for increasing eco-friendly logistics solutions; providing companies with further incentive to develop more advanced electric and hydrogen-powered vehicles, energy-efficient warehouse technologies, and sustainable packaging solutions.

E-commerce and Last Mile Logistics
The continued rise of e-commerce has significantly boosted demand for efficient logistics solutions. Companies focusing on efficient last-mile delivery, intralogistics and fulfillment services are particularly well-positioned to take advantage of investment opportunities in automated warehouses, advanced inventory management systems, and urban distribution solutions.

Automation and Robotics
Automation is key to improving efficiency and further reducing costs in logistics operations.
Companies that further innovate robotic intralogistic solutions for automated sorting, packing and picking processes within warehouses will certainly profit from opportunities in the German market.

Business Environment for Germany’s Logistics Industry

Germany’s logistics industry is characterized by a dynamic and favorable business environment spported by strong infrastructure, technological innovation and strategic location – making it a pivotal player in the global and European logistics marketplaces.

Transport Infrastructure
Germany boasts a well-developed and integrated transport infrastructure. Major ports like Hamburg, Bremerhaven and Wilhelmshaven play a critical role in global trade, particularly in container shipping and handling including Europe’s largest inland port – Duisburg. And only Germany has three major air freight hubs in the EU’s top 10 – FRA, LEJ, CGN. The country also has an extensive rail network that supports efficient cargo transport across Europe, with Deutsche Bahn being a key player.

Technological Advancements
Germany is at the forefront of implementing advanced technologies in logistics. The Fraunhofer Institute for Material Flow and Logistics IML is the partner of choice for integrated logistics research in automation, Internet of Things (IoT), data analytics, and AI. German logistics firms invest heavily in research and innovation.

Strategic Location
Germany’s central EU location makes it a key logistics hub for Europe; providing access to both western and eastern European markets and serving as a hub across the continent.