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UPS is the most valuable Logistics brand, valued at USD35.4 billion
The Brand Finance Logistics 25 2023 ranking is topped by UPS, despite an 8% year-on-year brand value decrease to USD35.4 billion. Fellow American brand FedEx follows as the world’s second-most valuable logistics brand, with an 11% increase to USD28.9 billion. Japan’s JR is in third with a 12% brand value increase to USD13.8 billion.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest logistics brands are included in the annual Brand Finance Logistics 25 2023 ranking.
UPS experienced comparatively lower projected financial growth this year, leading to a negative influence on its brand value. Various factors contributed to this outcome, including rising inflation, a global recession, and persistent supply chain challenges. Despite challenges, UPS has made significant improvements in its operations and services, which may help mitigate the economic and geopolitical challenges it continues to face.
Richard Haigh, Managing Director, Brand Finance commented:
“The logistics sector witnessed an unprecedented rise in online shopping during the pandemic as restrictions necessitated a shift in consumer behavior. While we have observed a moderation in this trend due to the gradual easing of the pandemic and the return of some consumers to offline shopping, the shift towards e-commerce is expected to persist, albeit not at the same accelerated rate experienced during the height of the pandemic. Although there are hard times ahead, logistics brands can anticipate that this continued transition to online retail could serve as a driving force in sustaining revenue growth within the e-commerce segment, thereby offering some respite amidst the prevailing geopolitical challenges faced by the industry.”
Maersk is the fastest-growing logistics brand, up 53%
Globally integrated logistics brand, Maersk, has achieved 53% year-on-year brand value growth, taking it to USD7.4 billion. The brand achieved record revenues this year, with forecasts increasing in a similar manner. Maersk has now more than doubled (up 121%) in brand value from its pre-pandemic level. Maersk has expanded its air cargo business, and has also acquired LF Logistics, the brand’s most consequential acquisition to date, further enhancing its footprint in Asia.
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JR is the strongest logistics brand, earning AAA rating
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
JR has become the strongest logistics brand in 2023 with a Brand Strength Index score of 87 out of 100 and AAA rating. JR plays a crucial role in the advancement of Japan’s primary transportation networks and infrastructure. Consequently, it has garnered an exceptional level of brand equity within Japan. The company enjoys a high awareness score of 95.10 out of 100, and it also boasts a high reputation score of 8.01 out of 10.
JD Logistics has highest Sustainability Perceptions Score, while UPS tops the ranking for sustainability Perception Value
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
Chinese brand JD Logistics has looked to counter the sector’s high emissions and increase its sustainability perception amongst consumers. The brand has the highest Sustainability Perceptions Score in the ranking – 5.51 out of 10.
In addition to being the most valuable Logistics brand, UPS also have the highest perceptions value – USD2.7 billion. UPS’ position at the top of the Sustainability Perceptions Value table is not an assessment of its overall sustainability performance. It rather indicates how much brand value UPS has tied up in sustainability perceptions.
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