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

Market Overview

The Singapore freight and logistics market is anticipated to register a growth rate of 8% during 2022-2027. During the COVID-19 pandemic, 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.

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.

Scope of the Report

Freight refers to goods, items, or commodities transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to managing how resources are acquired, stored, and transported to their final destination.

The Singapore freight and logistics market is segmented by function (freight transport, freight forwarding, warehousing, and value-added services and other services) and end user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade, healthcare and pharmaceutical, and other end users). The report offers market size and forecast for the Singapore freight and logistics market in value (USD billion) for the above-mentioned segments.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Growing 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.

The first initiative will strengthen Singapore’s digital infrastructure, particularly 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 increase the capacity to handle large e-commerce orders.

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

The country signed the world’s first digital-only trade agreement through the Digital Economy partnership Agreement (DEPA) with New Zealand and Chile to strengthen this aspect. 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.

To understand key trends, Download Sample Report