Singapore Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecast (2021-2026)

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).

Market Snapshot

Singapore Freight and Logistics Market Bar Graph
Study Period: 2017- 2026
Base Year: 2020
CAGR: 5 %

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Market Overview

The Singapore freight and logistics market is anticipated to register a growth rate of 5% during the period (2021-2026). During this time of crisis (COVID - 19), 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.

The logistics sector is a key pillar of Singapore's economy and contributed USD 6.8 billion, or 1.4%, to Singapore's gross domestic product in 2019. It employs over 86,000 workers across more than 5,300 enterprises.

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 any type of goods, items, or commodities transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to the overall process of 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.

By Function
Freight Transport
Road
Sea
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Others
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail)
Healthcare and Pharmaceutical
Other End Users

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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. Online sales in Singapore, as a proportion of total retail sales, increased from 5.8 % in January 2020 to 14.3% in November 2019.

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

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

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

Singapore Freight and Logistics Market Share

Development of Logistics Infrastructure and Connectivity

The government of Singapore continues to invest in transport infrastructure to maintain the country’s position as a world-class city and key transport mode between Asia and the world.

Singapore identified key underlying infrastructures that it believes will pave the way for the country to become a global and regional e-commerce hub. Its "five-pronged" strategy includes building out the local 5G networks, supply chain capabilities, and payment platforms.

Singapore will continue to build up its digital infrastructure and encourage more firms to adopt digital solutions such as PayNow Corporate and E-Invoicing Network.

Singapore will also continue to develop its supply chain capabilities. In this regard, Enterprise Singapore and other government agencies will work with the logistics sector to value-add to cold-chain management, retail, and pharmaceutical logistics. A data infrastructure foundation will be built up for sharing secure data across supply chains.

In 2019, Singapore began transforming logistics to reinforce its place in APAC's logistics industry by integrating the technologies with the existing processes. The Singapore government already started transforming logistics as part of its USD 4.5 billion Industry Transformation Programme. The program's primary objective is to drive excellence in logistics operations and become leaders in innovation while also building a strong core of local logistics talent, making Singapore attractive to inward investment. This scheme is named the Logistics Industry Transformation Map (ITM), and it follows similar plans for Singapore's food and beverage and precision engineering sectors.

Singapore Freight and Logistics Market Growth

Competitive Landscape

The market is fragmented in nature. Most manufacturing companies base their supply chain control towers and distribution centers in Singapore to orchestrate their regional and global supply chains. This scenario has attracted global logistics companies to mark their footprint in the Singaporean logistics industry. Changi Airport is home to four major express players, DHL Express, FedEx Express, TNT Express, and UPS. Furthermore, Airport Logistics Park of Singapore (ALPS) has the leading global third-party logistics companies (3PLs), like Expeditors, DB Schenker, and Nippon Express, with sizeable facilities. This report provides detailed profiles of global and local players with country-level developments. The document also consists of the market concentration of these players with significant merger and acquisition activities.

Recent Developments

March 2021: Collins Aerospace in Singapore awarded a two-year in-factory logistics support contract to the global logistics and supply chain company, CEVA Logistics. The contract will see CEVA Logistics deliver various contract logistics services, including inbound receiving to inventory, pick and kit, as well as the outbound dispatch of overhaul aerospace parts.

March 2021: Braskem is partnering with the logistics firm, A.P. Moller - Maersk, and port operator, PSA Corp., to open a new logistics hub in Singapore, as it seeks to better manage its polymers supply for the region.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Market Opportunities

    5. 4.5 Value Chain / Supply Chain Analysis

    6. 4.6 Porters Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Government Regulations and Initiatives

    8. 4.8 Technological Trends and Automation

    9. 4.9 Brief on Freight Rates

    10. 4.10 Insights on Bunkering Services

    11. 4.11 Review and Commentary on Singapore’s Relation with Other ASEAN Countries (Analyst’s View)

    12. 4.12 Spotlight- Role of Singapore as a Transshipment Hub

    13. 4.13 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION (Market Size By Value)

    1. 5.1 By Function

      1. 5.1.1 Freight Transport

        1. 5.1.1.1 Road

        2. 5.1.1.2 Sea

        3. 5.1.1.3 Air

        4. 5.1.1.4 Rail

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Others

    2. 5.2 By End User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail)

      6. 5.2.6 Healthcare and Pharmaceutical

      7. 5.2.7 Other End Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 United Parcel Service

      2. 6.2.2 Deutsche Post DHL Group

      3. 6.2.3 Singapore Post Limited

      4. 6.2.4 APL Logistics Ltd (Subsidiary of Kintetsu World Express Inc.)

      5. 6.2.5 ACW Logistics Pte. Ltd

      6. 6.2.6 Keppel Logistics Pte. Ltd

      7. 6.2.7 CWT Pte. Ltd

      8. 6.2.8 YCH Group Pte. Ltd

      9. 6.2.9 Yamato Transport

      10. 6.2.10 Deutsche Post DHL Group

      11. 6.2.11 DSV

      12. 6.2.12 Kuehne + Nagel International AG

      13. 6.2.13 Nippon Express Co. Ltd

      14. 6.2.14 Expeditors International

      15. 6.2.15 Yusen Logistics Co. Ltd

      16. 6.2.16 FedEx Corporation

      17. 6.2.17 Deutsche Bahn AG

      18. 6.2.18 Agility Logistics

      19. 6.2.19 CEVA Logistics*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity

    2. 8.2 Insights on Capital Flows

    3. 8.3 Economic Statistics – Transport and Storage Sector and Contribution to Economy

    4. 8.4 External Trade Statistics – Export and Import, by Product

    5. 8.5 Insights on Key Export Destinations

    6. 8.6 Insights on Key Import Origin Countries

**Subject to Availability

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Frequently Asked Questions

The Singapore Freight and Logistics Market market is studied from 2017 - 2026.

The Singapore Freight and Logistics Market is growing at a CAGR of 5% over the next 5 years.

United Parcel Service, Deutsche Post DHL Group, Nippon Express Co. Ltd, Kerry Logistics Network Limited, YCH Group Pte Ltd are the major companies operating in Singapore Freight and Logistics Market.

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