LATEST UPDATES AND TRENDS OF SOUTH EAST ASIA’S LOGISTICS INDUSTRY

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Forecasted Rush of Last Mile Logistics Demand in Southeast Asia

Last-Mile Logistics Demand in Southeast Asia

Japanese investment bank Nomura reported today that the online retail sales in both B2C ( Business to Consumers) and C2C (Consumer to Consumer) is forecasted by 2020 to have a five-year compound annual growth rate of 34% to hit a total of USD $36.1 billion

Due to the surge of smartphones and availability of internet almost anywhere higher online spending is foreseen for Asean’s parcel (market) size and reach a compound annual growth rate) of 23% by 2020, from 396m to 1,104m.

Major beneficiaries of the burst in logistic demand due to the forecasted growth of e-commerce transactions in Southeast Asia are none other than Leading third-party logistics operators (3PLs) and last-mile couriers

It is estimate both Philippines and Vietnam will experience the highest growth rates over the next five years, within Asean.”

e-commerce is seen as the main revenue growth driver, with shipment revenues translating to 7-8% of total online retail sales.

With the rise of logistics demand due to the region’s rapid growing ecommerce Majority of the world’s leading couriers and 3PLs have been expanding in Southeast Asia to take advantage. These international companies has to face strong competition from already established asian logistics company like LBC, and GD Express. All are competing for the revenue opportunity that’s estimated to double from USD$3.69 billion to USD$7.54 billion by 2020.

Logistics analysts is also predicting growth of freight with the rising e-commerce demand in Asia − foreseen movements for example, parts will be trucked from Thailand to China for assembly, then forwarded to Regional Distribution Centers, then shipped out by air, and eventually to last-mile deliveries.

Photo from : freepik.com


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