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Most valuable logistics brands 2018LONDON: March 06, 2018. According to Brand Finance (BF), an independent brand valuation and strategy consultancy, UPS remains the world's most valuable logistics brand, despite a one percent year-on-year drop in brand value to US$22.0 billion.

BF calculates the brand value (BV) of 25 logistics companies using the 'Royalty Relief' approach that estimates future revenues attributable to a brand by calculating a royalty rate that would be charged for its use.

Based on this methodology, FedEx remains in No.2 position with a BV of US$18.17 billion, up 6.0 percent in the past 12 months; followed by Japan Railways (US$11.01 billion), down nine percent; DHL (US$10.7 billion), a rise of five percent; Union Pacific (US$7.87 billion), minus two percent; Mclane (US$4.88 billion), no change; Post Italiane (US$4.84 billion), plus 20 percent; Canadian National Railway (US$4.41 billion), up 16 percent; Deutsche Post (US$4.25 billion), an increase of 29 percent; and CSX (US$4.00 billion), rounding out the top ten places at plus 4.0 percent.

BF suggests the top six brands stagnated last year with aggregate brand value growth of just 0.2 percent between them - despite increased online retailing and consequent demand for delivery services.

"There is no doubt that forging a distinct brand helps a business to build resilience," commented BF managing director Richard Haigh. "As Amazon prepares to launch 'Shipping with Amazon', having a strong brand can help protect incumbents from this new competition.

"Powerful brands alone will not be enough to prevent Amazon from gaining a foothold in the industry, however they will allow breathing room for the existing brands to riposte and limit their loss of market share," he added.

Largely driven by expected business growth and focus on serving domestic markets, China Railways Signal & Communication Corporation (CRSC) increased its brand value 54 percent (to US$1.3 billion) last year, while Shanghai International Port (SIPG) rose 47 percent (to US$1.2 billion) to place 24th and 25th respectively on the BF league table. Bolloré Logistics was the third first-time entrant in 23rd position.

Britain's Royal Mail dropped 20 percent in brand value to US$2.2 billion last year because of declining letter delivery and "fierce competition" from other delivery services, while France's La Poste (down 6.0 percent to US$3.7 billion) faces similar challenges. This is in contrast to Poste Italiane and Deutsche Post that have recorded significant brand value growth in the past year, according to BF.

Other winners and losers last year included Viterra (up 65 percent) and Kuehne + Nagel (up 43 percent), while BNSF and C.H. Robinson saw their respective BV drop 14 percent and 11 percent in 2017.

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