Are Logistics Stocks a Defensive Investment?

Are Logistics Stocks Recession-Proof?

– Steady demand in essentials, pharma, FMCG
– Infrastructure-based stocks often have longer cycles
– B2B contracts bring some revenue visibility

Traits of Defensive Stocks

– Consistent cash flows
– Low volatility during downturns
– Essential service demand (transport, warehousing)

When Logistics Can Be Defensive

– Cold chain for healthcare & food
– Rail-based logistics with government contracts
– Last-mile delivery in essential categories

Defensive Limitations

– Global trade dips hit container logistics
– E-commerce slowdown affects volume players
– Asset-heavy models see cash flow stress

Investment Insights

– Focus on 2–3 year horizon
– Buy low, wait for re-rating