Prospect of Singapore’s logistics industry

Singapore is well known to possess one of the busiest ports in the world. This in turn has led to an abundance of international maritime trades brought into Singapore. Many ships from the western countries in Europe and Americas stopped over at Singapore’s port for refueling before they continue their journey to other Asian countries. Some ships even unload all their containers at Singapore’s port and segment their containers into different destination countries in Asia. After which, they will engage third party sea freight to transport the containers to the respective countries. This has resulted in a lot of sea freight business for companies situated in Singapore.

These sea freight businesses make up part of Singapore’s logistics industry.

Next, there is also a huge land-based logistics industry in Singapore too, in particular the heavy machinery land-based logistics. Heavy machinery land-based logistics is supporting major companies and business activities in Singapore. For instance, huge machinery is needed to carry out big scale logistics activities such as moving of containers at ports. Real estate construction is also one area where these heavy machinery are needed to carry huge building materials around. Heavy duty logistics services are also required by manufacturing companies to transport mainly the raw materials to their factories.

Apart from heavy machinery logistics, there is also a sizable market specializing in small and medium size goods transportation. These transportation are typically carried out by cars, vans, motorbikes and lorries. As E-Commerce businesses grow in Singapore, the logistics market for this sector will definitely continue to grow. There is a growing demand for logistics service to transport these small and medium sized items. Many E-Commerce business owners outsource their logistics operations to third party logistics companies. These logistics companies will be able to offer a good rate due to the volume they are getting. The individual companies’ volume will pale in comparison to these logistics companies’ volume.

Finally, we have the air logistics services. Air logistics services are not offered by many Singaporean companies in the Singapore market. It is one area which is dominated by international air logistics players such as FedEx and DHL. These large corporations have huge network and tie up with lots of airlines around the world. Besides, they have existing infrastructure and huge volume that allow them to offer low price to customers. There is a huge barrier to entry to new start-ups in the air logistics service industry.