Double-digit growth in Asia Pacific logistics set to continue

This is one of the key conclusions of Asia Pacific Transport and Logistics 2011, the latest report from specialist research company Transport Intelligence

By ·

The dynamism and complexity of the Asia Pacific transport and logistics market offer investors and operators the industry’s best prospects for growth and returns. This is one of the key conclusions of Asia Pacific Transport and Logistics 2011, the latest report from specialist research company Transport Intelligence.

While logistics companies in Europe and North America are coming to terms with a long-term weak economic environment, Asia offers many more opportunities. The report identifies three key drivers of growth:

*The rapid development of the Chinese economy shows little sign of slowing, and its progression from low cost manufacturing base to high value production location is marking a new stage in its evolution. As labor costs rise in China, production is spilling over into neighboring, lower cost markets. Both trends offer numerous opportunities to freight forwarders and contract logistics providers.

*The Integration of the leading Asian economies is proceeding fast with free trade agreements reducing barriers to international commerce. Logistics companies can increasingly view parts of the region as a “single market.”

*Governments throughout the region are investing in numerous transport infrastructure projects as intra-regional trade increases, facilitating the provision of logistics services. Emerging countries such as Laos, Cambodia and Sri Lanka have seen major boosts in their economies as the number of manufacturing operations increase and disposable income rises. Consequently, these countries are rapidly ramping up projects to build airports, roads and rail networks in order to compete in the global economy.

“Although the region will remain an export leader for years to come, the growing intra-regional trade is creating an intricate supply chain particularly as China advances to more skilled manufacturing and lower-value production migrates to other Asian countries,” said Cathy Roberson, the report’s principal author. “Growth in contract logistics, express and freight forwarding services is expected to maintain double-digit increases through 2014 with China and India leading the way.”

BIMCO, an independent international shipping association based in Bagsvaard, Denmark, also reported today that increasing freight rates on the Far East - Europe trading lane is “a very positive sign.”

Bimco’s chief shipping analyst, Peter Sand, told SCMR that rates would continue to decline “on the forward curve” in the transpacific trade.


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 pburnson@peerlessmedia.com.

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

All Topics
Latest Whitepaper
Boost your retail performance with an integrated solution
From outbound and inbound route planning to inventory management, and workforce optimization to home delivery planning, your planners need the full picture to make the best decisions.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...