The logistics investment in Europe has been increased to a seven-year high of US$46.5 billion in 2020 thanks to the rise of e-commerce. Data from an online trading portal Comprar Acciones revealed that by the end of the year, the figure had risen to €38.64 billion – the highest figure since 2013.
According to the portal, the growth rate was fueled by a record number of warehouses being taken up in the region with the United Kingdom leading the way.
As a result, it claims that warehouse vacancy rates in Europe have reached a new low of 5%.
In 2020, leasing activity in Europe increased by 69 percent, with agreements totaling 11 million square feet. Amazon and Alibaba, according to Comprar Acciones, are two key players driving the trend.
Alibaba’s cross-border e-commerce transactions are primarily handled by its Cainiao logistics arm and AliExpress, according to the company. Cainiao reported a 51 percent increase in revenue to US$1.74 billion in the final three months of 2020.
Alibaba’s profits from global e-commerce wholesale significantly improved by 53% during that time. Amazon also reported unequalled fourth-quarter 2020 results, owing to a never previously achieved during festive season.
It shipped more than 1 billion goods to its customer worldwide during that time. Amazon expects profits in the range of US$100 billion to US$107 billion in 1Q21. For the period, it expects net margin of between US$3.0 billion and US$6.5 billion.