ASEAN: Last-mile logistics poised for fresh demand

A new report by the Japanese investment bank Nomura outlines fresh opportunities for third-party logistics providers (3PLs) in ASEAN countries where courier revenues are forecast to double by 2020

By ·

According to Nomura analyst Ahmad Usman, the rapid growth of e-commerce transactions in South East Asia will require more 3PL expertise. The report also notes that ASEAN’s B2C retail market is still at a “nascent stage” compared to Japan and China but has untapped e-commerce potential.

“While ASEAN’s post and parcel numbers are nowhere near the billions of postal mails and parcels handled in Japan and the United States, they suggest a similar story,” says Usman. “With surging internet and smartphone penetration and higher online spending, we foresee ASEAN’s parcel market size to see a compound annual growth rate of 23% by 2020.”

Furthermore, Nomura researchers estimate that both Vietnam and the Philippines will see the highest growth rates over the next five years within ASEAN.

As we’ve been covering in Logistics Management, most of the world’s leading couriers and 3PLs have been expanding in South East Asia in recent years in a bid to access the region’s fast-growing consumer markets. According to Nomura, global integrators will face strong competition from Asian companies already boasting a strong foothold in ASEAN, most notably SingPost, LBC Express, GD Express and Pos Malaysia.

According to Nomura reports, the revenue opportunity for courier players should double to $7.54 billion by 2020, from the current $3.69 billion in 2015—a 15% compound annual growth rate over 2015-2020.

Logistics analysts say escalating e-commerce demand in Asia also means growth of heavy freight movements—for example, parts for mobile phones trucked from Vietnam to China for assembly, then shipped out by air or truck, leading eventually to last-mile deliveries.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

3PLs · ASEAN · Last-Mile Delivery · All Topics
Latest Whitepaper
Face security threats head-on. Protect data beyond perimeter.
Traditional Data Loss Protection (DLP) solutions present a number of serious shortcomings and challenges for companies deploying them, creating a clear gap in the market.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Securing IoT data across the connected supply chain
Learn why a holistic approach to IAM is the most effective way to govern access to your systems and information requested by your partners, vendors, customers, and connected devices.
Register Today!
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...