Statistics for the 2023 & 2024 Asia Pacific Freight and Logistics market trends, created by Mordor Intelligence™ Industry Reports. Asia Pacific Freight and Logistics trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.
Market Trends of asia pacific freight and logistics Industry
Asia Pacific faces surging freight demands driven by global seaborne trade, which is triggering transport sector investments
The region's new Regional Action Program (RAP) addresses issues like increasing freight and passenger volumes and reflecting the rising freight transport and mobility demand. Two-thirds of global seaborne trade is concentrated in Asia Pacific, also home to nine of the world's busiest container ports. The region is responsible for more than 40% of the global surface freight transport flows, and by 2050, the region's demand for freight transport is projected to triple.
India's transportation sector, primarily road-dominated, contributes about 3.75% to the GDP. Over 50% of freight and 90% of passenger traffic rely on roads, driven by government and private investments, rising exports, the FMCG sector, and growing disposable income. India promotes connectivity with 100% FDI in the roads and highway sector. Japan's FY 2021 saw increased domestic freight transportation by commercial motor vehicles, totaling about 2.6 billion metric tons, with road transport leading in volume.
International freight transport continued to operate with the support of policy measures. In the Asia Pacific region, networks like the Asian Highway, Trans-Asian Railway, and dry ports, established under ESCAP, play a vital role in land transport connectivity and logistics. These networks are increasingly integrated with inter-regional transport corridors and shipping networks. China emphasized ensuring smooth transportation and logistics to stabilize the economy, with the Industrial and Commercial Bank of China's Shandong branch extending over USD 1.19 billion in loans to support the logistics sector in 2022.
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Owing to global uncertainties crude oil prices are soaring in the Asian economies as most of them are net oil importers
Crude oil reached USD 130 per barrel in March 2022, its highest level since 2008, before retreating to USD 100 per barrel in April of the same year. Russia is the third-largest producer of liquid fuels and petroleum, so when the country invaded Ukraine in late February 2022, it had an immediate impact on crude oil prices. As the conflict continued, the prices of crude oil settled on an upward trajectory. The increase in oil price also reflects supply limitations by the OPEC. Though the overall economic impact has been modest in Asia-Pacific, the situation can change quickly, subject to the magnitude and duration of oil price increases.
Due to global geopolitical uncertainties and tight supply conditions oil prices surpassed USD 80 in November 2021, double the price in 2020. Countries in Asia rely on coal to generate power, but shortages have turned them into natural gas. Due to high demand natural gas prices soared in 2021 and remained high in 2022 and affected countries have turned to gas to oil switching to reduce power generation costs. Higher oil prices are often economically damaging for net oil importers. Most countries are net oil importers except for a few oil exporters, such as Brunei, Malaysia, and Vietnam.
For the short term, the region is prioritizing the rising oil prices and global interest rates and maintain a stable macroeconomic environment of low inflation and prudent fiscal balances. The average price of gasoline around the world remains at Rs 106.90 per liter (USD 1.29). The price of petrol stands at Rs 104.18 per liter (USD 1.25) in India, Rs 99 per liter (USD 1.19) in China, Rs 249 per liter (USD 1.9) in Pakistan and Rs 240 (USD 2.9) in Hongkong. The differences in prices across countries are due to the various taxes and subsidies for gasoline.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
The diverse population of 4.7 billion in Asia Pacific in 2023 faces a decline due to aging demographics
Oil and gas and wholesale and retail trade sectors are the fastest-growing sectors contributing to economic growth in APAC countries
China is the leading e-commerce market, accounting for over 50% of all retail e-commerce sales worldwide
Asia Pacific economies are striving toward robust export growth by 2030, driven by government initiatives to boost trade
Rising fuel prices, along with global semiconductors shortages, increase overall operational costs
The Asia Pacific region is investing in transportation infrastructure to boost its connectivity and business opportunities
Supportive trade policies and initiatives coupled with investments driving growth in the region
Japan, South Korea, Malaysia, Singapore, and China are the main bilateral maritime partners driving connectivity in the APAC region
Price fluctuations were witnessed across various modes of transport due to the introduction of new container vessels and the Russia-Ukraine War
Asian countries are boosting investments in economic and infrastructure development
India and China among the leading nations to boost agriculture, fishing, and forestry as economic drivers in APAC
India, Australia, and Japan witnessed record high and fastest annual producer and consumer price increases in 2022 largely owing to high energy and utilities cost
Manufacturing industry in the region contributed around 14% to the GDP and grew by 5% YoY in 2022
Asia Pacific economies are registering huge growth in LNG imports, driven by scarce domestic production
Electric trucks are driving the road transport market in the APAC region as many countries are adopting net zero emission standards
Prominent players in the region are primarily focusing on new product launches to expand their market share
China became the world's largest maritime fleet owner in 2023, whereas Japan's shipbuilding declined by 16.4% amid rising costs in 2022
Ports in Asia-Pacific battling port congestion, led by strikes and supply chain disruptions
The volume of goods transported is expected to grow during the forecast period, owing to growing initiatives to support the increasing demand in the region
Asia Pacific Freight and Logistics Market Report Snapshots
Asia Pacific Freight and Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029
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