Singapore Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecas(2022 - 2027)

Singapore Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecas(2022 - 2027)

The Singapore freight and logistics market is anticipated to register a growth rate of 5% during the period (2021-2026). During this time of crisis (COVID - 19), the Maritime and Port Authority of Singapore (MPA) ensured minimum disruption to the shipping industry, as it is critical to supporting Singapore in overcoming the pandemic. The Port of Singapore remains open for cargo operations and marine services, including bunkering, ship supplies, and shipyard repairs, to ensure commerce by sea and global supply chains remain undisrupted.

Singapore has strengthened its status as a global logistics hub amid the COVID -19 pandemic, riding on its competitive advantages such as the efficiency, reliability, and resilience of its network.

As Singapore is a major transshipment hub and serves as a gateway to some of the key regions, any changes in the global shipping industry affect Singapore's logistics market, majorly in sea and air. Singapore is also significantly affected by the changes in the global manufacturing sector.

Government agencies have worked to ensure that any disruptions in Singapore's supply chain network are quickly overcome by providing options in other parts of the network. Singapore has moved toward higher value-added logistics services such as contract logistics that provide customized and end-to-end solutions for companies.

The logistics sector is a key pillar of Singapore's economy and contributed USD 6.8 billion, or 1.4%, to Singapore's gross domestic product in 2019. It employs over 86,000 workers across more than 5,300 enterprises.

Leading international logistics firms, such as DHL, UPS, and DB Schenker, have made Singapore their regional headquarters, while multinational corporations, like GlaxoSmithKline and Unilever, have located their regional supply chain management teams.

Key Market TrendsGrowing E-commerce in Singapore

In February 2021, Singapore’s Minister of Trade and Industry, Chan Chun Sing, introduced the latest strategy to transform the country into a regional and global e-commerce hub. The initiative was announced in 2021. Online sales in Singapore, as a proportion of total retail sales, increased from 5.8 % in January 2020 to 14.3% in November 2019.

The first initiative will strengthen Singapore’s digital infrastructure, particularly in digital connectivity, data analytics, payment systems, and new business innovation.

A key initiative will be developing 5G infrastructure, the backbone of the country’s digital economy. About 50% of the country will have 5G coverage within two years, and there will be two nationwide 5G networks by 2025. The greater bandwidth from the networks will enable an increase in capacity to handle large e-commerce orders.

Singapore is ramping up its cybersecurity capabilities to protect businesses and ensure that the flow of cross-border data is secure.

In order to strengthen this aspect, the country signed the world’s first digital-only trade agreement through the Digital Economy partnership Agreement (DEPA) with New Zealand and Chile. Through this agreement, Singapore aims to develop international frameworks to support businesses engaging in cross-border digital trade and e-commerce. The DEPA came into force in January 2021.

Development of Logistics Infrastructure and Connectivity

The government of Singapore continues to invest in transport infrastructure to maintain the country’s position as a world-class city and key transport mode between Asia and the world.

Singapore identified key underlying infrastructures that it believes will pave the way for the country to become a global and regional e-commerce hub. Its five-pronged strategy includes building out the local 5G networks, supply chain capabilities, and payment platforms.

Singapore will continue to build up its digital infrastructure and encourage more firms to adopt digital solutions such as PayNow Corporate and E-Invoicing Network.

Singapore will also continue to develop its supply chain capabilities. In this regard, Enterprise Singapore and other government agencies will work with the logistics sector to value-add to cold-chain management, retail, and pharmaceutical logistics. A data infrastructure foundation will be built up for sharing secure data across supply chains.

In 2019, Singapore began transforming logistics to reinforce its place in APAC's logistics industry by integrating the technologies with the existing processes. The Singapore government already started transforming logistics as part of its USD 4.5 billion Industry Transformation Programme. The program's primary objective is to drive excellence in logistics operations and become leaders in innovation while also building a strong core of local logistics talent, making Singapore attractive to inward investment. This scheme is named the Logistics Industry Transformation Map (ITM), and it follows similar plans for Singapore's food and beverage and precision engineering sectors.

Competitive Landscape

The market is fragmented in nature. Most manufacturing companies base their supply chain control towers and distribution centers in Singapore to orchestrate their regional and global supply chains. This scenario has attracted global logistics companies to mark their footprint in the Singaporean logistics industry. Changi Airport is home to four major express players, DHL Express, FedEx Express, TNT Express, and UPS. Furthermore, Airport Logistics Park of Singapore (ALPS) has the leading global third-party logistics companies (3PLs), like Expeditors, DB Schenker, and Nippon Express, with sizeable facilities. This report provides detailed profiles of global and local players with country-level developments. The document also consists of the market concentration of these players with significant merger and acquisition activities.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

United Parcel Service
Deutsche Post DHL Group
Singapore Post Limited
APL Logistics Ltd (Subsidiary of Kintetsu World Express Inc.)
ACW Logistics Pte. Ltd
Keppel Logistics Pte. Ltd
CWT Pte. Ltd
YCH Group Pte. Ltd
Yamato Transport
Deutsche Post DHL Group
DSV
Kuehne + Nagel International AG
Nippon Express Co. Ltd
Expeditors International
Yusen Logistics Co. Ltd
FedEx Corporation
Deutsche Bahn AG
Agility Logistics
CEVA Logistics*

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