According to Business Wire (Apr 16, 2018), Singapore freight & logistics market is expected to reach a market value of US$114.81 billion by 2023.
As an international trading hub, Singapore has the world’s busiest transshipment hub, and Changi Airport is one of Asia’s largest cargo airport, with capacity to handle 3 million tonnes of cargo.
Growing number of multinationals selected Singapore as the regional headquarters transforming it into a distribution hub for regional market.
The Singapore government’s Logistics Industry Transformation Map (ITM) scheme aims to optimise current logistics systems through more effective resource allocation and leveraging of technology e.g. deployment of federated lockers and cloud based supply chain management.
The logistic industry is expected to contribute higher to the overall GDP.
Even so, freight and logistics companies will face numerous issues. With falling freight rates, smaller players are forced out of business or compelled to merge. This presents opportunity for players with strong balance sheet to acquire niche players in important trade routes and geographical markets.
Going forward, there is a need for increasing focus on innovation and technology-enabled logistic solutions in order to keep up with the competition.