Press release
How Singapore Logistics Market is aiming to keep itself globally at No.1? : Ken Research
Singapore logistics market, is projected to achieve ~7%, by 2028, owing to its enlarged networks of Free Trade Agreement (FTA), having more than 25 major trading partners to enhance the access to major markets, and also an increase in the transport and e-commerce section, shifts the weightage towards Singapore.STORY OUTLINE
Singapore Freight and Logistics market are paving the way towards an allover growth of the market.
Singapore has an enlarged network of Free Trade Agreement, having more than 26 trading partners, increasing its access to large market sectors.
The rise in E-commerce sectors with the increase in internet and smartphone penetration.
Click to know more about the Singapore's logistic sectors
According to Ken Research, the size of the Singapore logistics market is increasing its market growth every year, with increasing trucks, vans etc. for the transport sector.
An increase in the number of shipments going on in the E-commerce sector and due to the Free Trade Agreement, association of more than 26 trading partners sum up to avail the access of Singapore to the major market sectors globally.
Singapore Logistics market is one of the largest sectors in the country, effectively shipping and transporting products and shipping them to a large number of countries.
Increasing effectiveness and amount of workers and moving towards automation and digitization is among the main targets that Singapore aims to achieve in the coming time. In order to effectively handle large industry works through machines and automation techniques to achieve greater speed and efficiency in the future.
E-commerce line is another stronghold that the country is aiming to flourish as with the online shipment and delivery, tracking and proper delivery of the products are ensured and guarantees safety as the records are stored in data and allows people to track their shipment online.
1. Singapore Logistics market shows its versatility in through its ports.
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Singapore is currently the home to the world's largest shipment container port, which is linked to more than 600 ports With Singapore Changi Airport, voted to be the best port globally, serving over 6,800 flights to 330 major global cities, summing up the nation's trade value to be ~3.5 times more than its GDP.
The PSA terminal of Singapore, has four 4 container terminals, 1 multi-purpose terminal and 1 vehicle transshipment terminal, carrying out a huge network of shipping workflow of 200 shipping lines, connecting 123 countries with vessels, with a frequency 60 vessels per day.
Built in a way to move cargo effectively around the globe, the cold chain facilities, warehouses and offices in Changi Airfreight Centre (CAC), coupled to the Airport Logistics Park of Singapore (ALPS), are well equipped to handle all types of shipment and storage of the data, handling over 97 million metric ton annually.
2. Singapore has an enlarged network of Free Trade Agreement, having more than 26 trading partners, increasing its access to large market sectors.
Other Free Trade agreements like Singapore-United States Free Trade Agreement (USSFTA), Singapore-Japan Economic Partnership Agreement (SJEPA), and many more to reduce the tariffs on trade, investments and other governing techniques, allowing the country to successively grow with other countries such as Japan, United Kingdom, United States of America etc.
SAFTA or Singapore-Australia Free Trade Agreement is free trade agreement, aims for the elimination of tariffs on goods traded between Singapore and Australia, also covering trade in services, government procurement,
Singapore is a currently in a contract agreement with the Association of South-East Asian Nations (ASEANS). This established a regional FTA called ASEAN Free Trade Area (AFTA) which includes countries like Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar expanding the shipment reach to all these countries.
3. The rise in E-commerce sectors with the increase in internet and smartphone penetration.
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Singapore's Minister of Trade and Industry, Chan Chun Sing, introduced an innovative strategy of changing Singapore's digital infrastructure, mainly the digital connectivity, data analytics, payments system The key goal will be to transform the industry into a 5G infrastructure, to receive larger and better bandwidths, enabling a 5% increase in the capacity to handle large e-commerce orders and keep a proper track of them.
The country signed the World's first digital- only trade agreement via the Digital Economy Partnership Agreement (DEPA), with New Zealand and Chile, aiming to form an international frameworks to support the businesses which are engaging in nationwide digital trade and e-commerce.
With the increase in the number of users buying goods from online stores, shipment and delivery increases hand to hand. Since almost 92% of the population in Singapore are having smartphones, smartphones and internet penetration has risen by 94%.
Conclusion
According to this research, a strong increase in the number of warehouses to the number of ships and ports, are a result of the extensive network of Free Trade Agreements with many countries, increasing number of infrastructure with high speed bandwidth and 5G connectivity, enabling online purchase with proper delivery tracking and data storage, via the internet, resulting in an overall market expansion and people's engagement towards the market.
For more insights on market intelligence, refer to the link below: -
https://www.kenresearch.com/industry-reports/singapore-logistics-market
Ken Research
Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.
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