Singapore Freight And Logistics Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Singapore Freight And Logistics Market Trends and Insights

Government investment in port and logistics infrastructure

Singapore is channeling significant capital into backbone assets. The Tuas Port complex, built for 65 million TEU ultimate capacity, began Phase 1 operations in September 2024 and is already handling automated yard moves that reduce berth time by 20%. A SGD 647.5 million (USD 476.65 million) Supply Chain Hub scheduled for 2027 completion will integrate autonomous cranes with the SGTraDex data layer, enabling real-time inventory repositioning for manufacturers. Complementing port upgrades, the Land Transport Authority is piloting a Green Freight Corridor that offers SGD 40,000 incentives per heavy battery-electric truck from 2026, supported by battery-swap stations along key industrial routes. These initiatives reinforce Singapore freight and logistics market competitiveness by unlocking capacity, trimming dwell time, and sharpening the city-state’s cost advantage over regional rivals^{[1]“Green Freight Corridor Factsheet 2024,” Land Transport Authority, lta.gov.sg}.

Explosive B2C e-commerce parcel volumes

Online shopping penetration reached 88%, pushing the domestic e-commerce value to SGD 7.9 billion (USD 5.81 billion) in 2023 and a projected SGD 11.3 billion (USD 8.31 billion) by 2028. Parcel volumes rose in double digits, with SingPost handling more than 200 million items in 2024. Capacity pressure triggered investment in automated sortation hubs and last-mile micro-fulfillment sites by DHL and SF Express, which together deployed electric cargo bikes to shave urban delivery costs by 15%. Cross-border flows add momentum as ASEAN e-commerce is forecast to touch USD 211 billion by 2025, routing high-yield parcels through Changi Airport’s express facilities^{[2]“Productivity Solutions Grant Update 2025,” Enterprise Singapore, enterprisesg.gov.sg} .

Singapore’s role as trans-shipment hub for ASEAN + Indo-Pacific

Container volume reached 39.47 million TEU in 2024, cementing Singapore’s place as the world’s second-busiest box port. A liner shipping connectivity index of 117.8 highlights direct calls from more than 200 carriers. Red Sea disruptions diverted long-haul strings via the Cape of Good Hope, adding Singapore stops and showcasing the port’s agility. PSA is layering cold-chain, hazardous-cargo, and digital bunkering services onto Tuas operations, opening margin-rich adjacencies while the Maritime Singapore Green Initiative grants of SGD 200 million (USD 147.22 million) incentivize low-carbon propulsion.

Accelerated digitalization and 3PL outsourcing by SMEs

Enterprise Singapore’s Productivity Solutions Grant co-funds up to 50% of logistics tech adoption, allowing SMEs to deploy cloud WMS and TMS tools without high upfront costs. YCH Group and ST Logistics operate control towers that blend shipment data across modes, cutting lead time as much as 20% for electronics exporters. SGTraDex processed more than 35 million transactions by end-2024 and is on track to deliver SGD 100 million annual value by 2026 through paperless trade flows.

Acute labor shortage and escalating manpower costs

Transport job vacancies rose to 3,800 in Q3 2024 from 2,800 a year earlier, and median sector wages climbed 5.4% in 2023. Foreign-worker quota ceilings hold at 38% of headcount, pushing logistics operators toward automation. SATS deployed autonomous mobile robots that trimmed manual cargo handling by 30%. Smaller firms face cash-flow pressure because robotics outlays entail multi-year payback horizons. The Progressive Wage Model will add further cost escalation through 2026, possibly driving basic warehousing activities to lower-cost sites over the border^{[3]“Labour Market Report Q3 2024,” Ministry of Manpower, mom.gov.sg}.

Land scarcity limiting new warehousing capacity

JTC allocates a finite 12,800 hectares for industrial use, and prime sites near Tuas and Changi saw rents rise 10–15% in 2024. Vertically stacked warehouses improve land yield but elevate build cost and restrict heavy-vehicle movement. Cold-storage capacity, at about 1.2 million m³, lags growing pharmaceutical and perishable imports that jumped 8% in 2024. Lead times for new facilities stretch beyond two years, encouraging operators to lease space in Johor where rents are 50–60% lower yet cross-border links remain tight^{[4]“Industrial Rent Index 2024,” JTC Corporation, jtc.gov.sg}.

Segment Analysis

By End-User Industry: Wholesale and Retail Trade leads but Manufacturing accelerates

Wholesale and Retail Trade generated 30.96% of 2025 revenue, driven by omnichannel grocery and electronics distribution. Manufacturing, however, delivers the fastest 6.76% CAGR (2026-2031), buoyed by USD 177.8 billion in 2024 factory output spread across semiconductors and biomedical products. Precision sectors require strict climate control and short turnaround, lifting demand for specialized freight. 

Oil, Gas, Mining, and Quarrying provides steady petrochemical flows from Jurong Island. Construction activity tied to Tuas Port and rapid transit infrastructure sustains heavy-haul demand, though growth moderates once flagship projects near completion. Agriculture remains minor but gains attention under the “30 by 30” local food plan, adding niche cold-chain requirements.

Note: Segment shares of all individual segments available upon report purchase

By Logistics Function: Freight Transport dominates but CEP surges on e-commerce tailwinds

Freight Transport held 61.26% of Singapore freight and logistics market share in 2025, anchored by maritime and air-cargo flows that benefit from the city-state’s trans-shipment strength. The segment will continue expanding, though its share inches lower as CEP accelerates. CEP revenue is set to climb at a 7.20% CAGR (2026-2031) on the back of domestic online retail and ASEAN cross-border orders. Warehousing follows in the mid-teens share, posting a 6.50% CAGR (2026-2031) as real-time visibility tools foster just-in-time stocking. Freight Forwarding gains incremental value from SME digitization, with TradeNet documentation cuts translating into faster customs release. Operators bundle insurance, brokerage, and packaging services to support compliance in data-localization regimes.

Parcel giants are blurring the line between CEP and forwarding. DHL and Kuehne+Nagel already cross-utilize linehaul capacity, boosting load factors and lowering unit cost. This convergence will reshape how the Singapore freight and logistics market allocates capital because express carriers now compete head-to-head with traditional forwarders for mid-weight cargo. Yet regulatory light-touch remains; IMDA’s data rules drive specialized compliance work but do not create significant entry barriers for tech-enabled challengers.

By CEP Destination Type: Domestic parcels dominate but International outpaces on ASEAN e-commerce

Domestic parcels formed 64.95% of the 2025 value as shoppers accustomed to same-day service demand dense urban coverage. Still, International parcels grow faster at a 7.46% CAGR (2026-2031) aligned with ASEAN cross-border trade. Higher yields per item make international traffic the profit engine. SingPost and SF Express operate cross-border hubs that link directly into partner postal networks, removing intermediate stops and improving reliability. Locker networks within residential precincts cut failed deliveries, yet free-shipping thresholds from platforms compress margins. To defend returns, operators introduce premium options featuring carbon-neutral certification, an offering likely to gain traction once carbon tax bands rise.

Blockchain-enabled track-and-trace will become table stakes. Maersk and DHL pilot programs show 60% dispute-resolution time savings, reinforcing visibility as a competitive differentiator in the Singapore freight and logistics market.

By Warehousing Temperature Control: Non-Temperature-Controlled dominates but Cold Chain accelerates

Non-Temperature-Controlled sites own 91.56% of capacity, catering to electronics and general merchandise. Automation investments in robotic picking, autonomous cranes, and productivity offset manpower constraints. Cold chain, although small, posts a 7.06% CAGR (2026-2031) as pharmaceutical imports and premium food demand climb. Land scarcity complicates cold-store expansion; rents near Changi run 30–40% above ambient equivalents. Operators respond with multi-story builds incorporating high-density racking and efficient refrigeration. The Health Sciences Authority enforces GDP certification, raising the floor for service quality and capital intensity.

Emerging players view the cold chain as the quickest path to margin expansion. GEODIS’s 2024 purchase of Keppel Logistics underscores the premium placed on temperature-controlled assets within the Singapore freight and logistics market.

By Freight Transport Mode: Road leads but Air gains on premium express demand

Road transport commanded a 64.31% share in 2025, reflecting dense urban distribution and short-haul connectivity to Johor. Growth is leveling as Electronic Road Pricing lifts operating cost, and diesel prices remain elevated. Air freight, the smallest mode by tonnage, outpaces all others with a 7.05% CAGR (2026-2031) courtesy of electronics and pharmaceutical express demand. Belly-hold capacity recovery trails passenger traffic rebounds, meaning dedicated freighters keep rates buoyant. Sea and Inland Waterways hold a steady footing through mega-carrier alliances and vessel upsizing that favor deep-draft Tuas berths. Pipelines serve niche petrochemical flows, and rail remains negligible due to geography.

The Singapore freight and logistics market size tied to Air freight will rise disproportionately because higher-yield cargo offsets volume gaps. That dynamic incentivizes Changi Airport to enlarge dedicated freighter stands and enhance perishables processing. Meanwhile, road fleets face green pressure. The Green Freight Corridor will compel fleet renewal toward electric trucks, adding capital needs yet reducing per-kilometer energy expense over time.

Note: Segment shares of all individual segments available upon report purchase

By Freight Forwarding Mode: Sea dominates but Air gains on express consolidation

Sea forwarding comprised 50.34% of 2025 values, propelled by direct liner links to 600 ports. Alliance consolidation keeps unit economics favorable for mega-forwarders. Air forwarding, though smaller, records a 6.31% CAGR (2026-2031) as express consolidation tightens lead times for high-value goods. Digital platforms offer instant booking and tracking, compressing the traditional brokerage space.

Maersk’s TradeLens and CMA CGM’s SHIPNEXT cut administrative time by half, letting operators focus on value-added services such as bonded warehousing and customs consultancy. Road forwarding retains relevance on Singapore-Malaysia links, especially once the RTS opens in 2026.

Geography Analysis

Singapore’s freight network spans only 730 km² yet punches above its weight. The western Tuas corridor, the eastern Changi cluster, and the central Jurong belt anchor national throughput. A 6.26% CAGR stems from automated capacity gains and digital orchestration that mitigate labor and land constraints. 

Cross-border synergies with Johor intensify; the RTS Link will streamline cargo and labor flows, while lower rents across the strait encourage secondary storage. International CEP riding ASEAN growth funnels through Changi’s 24-hour customs clearance, making the city-state the default hub for time-sensitive goods.

Carbon taxation, climbing from SGD 25 (USD 18.40) per ton in 2024 to as high as SGD 80 per ton by 2030, raises the compliance bar but also sharpens the green premium commanded by low-emission services. Digital bunkering becomes mandatory in April 2025, cementing Singapore’s first-mover status in maritime sustainability.