Singapore Freight & Logistics Market Study - Market Trends, Analysis & Forecasts to 2023
The Singapore freight & logistics market is expected to reach a market value of USD 114.81 billion by 2023. Singapore has developed into a major transshipment hub for the Asian region, boasting well-developed port infrastructure and strong container shipping connections. In terms of liner connectivity, the country is ranked second, globally, with a score of 122.7, after China (167.5). The well-developed and strong port connections have ensured that it plays a premier global role, with Singapore the world number one, in terms of container throughput, prior to 2010 when Shanghai overtook the country. Singapore is seeking to reclaim its number-one position with the facility hoping to attract new customers and retain existing clients by cutting port fees.
Insights on Freight Forwarding
Singapore is a major international trading hub due to its centralized position in Southeast Asia. The country is positioned as a global transshipment hub. As such, the logistics industry is expected to grow over the forecast period with continued higher contribution of logistics sector to the overall GDP of the country. Singapore Changi Airport had recorded a strong performance in 2016, with air freight throughput increasing by 6.3% to reach a new high of 1.97 million metric ton. In terms of airfreight throughput, growth was recorded across imports, exports, and transshipments. Perishables and pharmaceuticals were segments that performed well, contributing a significant portion of Changi’s total cargo throughput.
The top five country markets for air freight were China, Australia, Hong Kong, the United States, and India. To strengthen its pharmaceutical cargo handling capabilities, Changi Airport formed a community of cargo partners to undergo the attainment of International Air Transport Association’s (IATA) Centre of Excellence for Independent Validators on Pharmaceutical Handling (CEIV Pharma) certification. In October 2016, the DHL Express South Asia Hub, a 24-hour express hub facility located within Changi Airfreight Centre, was officially opened. This has tripled DHL Express’ cargo handling facility in Singapore and allows shipments to be processed six times faster. Together with SATS’ upcoming e-commerce AirHub expected to open later this year, these developments will boost Changi’s position as a leading air cargo hub in Asia.
Insights on E-Commerce Fulfilment
With the speedy growth of e-commerce in Southeast Asia, many online stores are expected to prioritize last-mile delivery services, considering it as the part of the business strategy. Because last-mile delivery service is often a company’s first point attraction for its customer. Additionally, having a smooth and efficient last-mile fulfillment will enable e-commerce companies to build stronger levels of trust and brand loyalty with its rapidly expanding consumer markets. Keppel T&T; one of the leading logistics service providers in Singapore; has acquired 59.6% stakes of Courex Pte Ltd; a Singapore-based e-commerce logistics service provider. This acquisition is likely to help Keppel T&T's to grow its complementary capabilities logistics division to tap into significantly growing market sectors, such as e-commerce. There is trend growing among multi-nationals to elect Singapore as their regional headquarter. The country is leveraging its geocentric positioning within Southeast Asia by presenting itself as a distribution hub for the regional market. There is also an increasing focus around innovation and technology-enabled logistics solutions, due to the higher level of labor costs in Singapore and the need to keep its competitive edge against neighboring countries. Opening into the Strait of Malacca, Singapore has plans to be the international/global nodal center for e-commerce logistics, similar to how the country has become a regional distribution hub for countries across the globe.
Key Developments in the Market
2016: Global logistics provider, Kuehne + Nagel opened its Singapore Logistics Hub facility. Within the facility, 46,000 sq. m of the 50,000 sq. m facility is dedicated to warehousing space, and 40% of the facility is furnished with advanced chilled storage, redressing, and postponement facilities to support the growing base of pharmaceutical and healthcare companies in Singapore.
2016: DHL Supply Chain opened its logistics center in Singapore in anticipation of increases in pharmaceutical and high-tech air cargo traffic in the Southeast Asian region. The 90,000- sq. ft. facility incorporates 130 robotic shuttles to retrieve and store products from up to 72,000 locations arranged in 26 levels. Other logistics providers, including UPS, CEVA, and Schenker have also established a pharmaceutical logistics presence in Singapore.
Major Players: DB Schenker, DHL, Yusen Logistics, C & P Holdings PTE Ltd, YCH Group PTE Ltd, and Ceva, amongst others.
Reasons to Purchase the Report
Current and future of Singapore freight & logistics market outlook
Analyzing various perspectives of the market with the help of Material Flow & Trade analysis
Identifying the segment that is expected to dominate the market
End-use Industries that are expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
Market size estimation and forecasts included – by segment-level, such as mode of transport, logistics function, end-user industry, etc.
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