Asia draws more logistics capacity

Asia draws more
logistics capacity

The Asia/Pacific logistics market is expected to grow 15.7% through 2007, reaching $1.336 billion, according to Transport Intelligence. Express operators DHL, FedEx, TNT and UPS have all announced plans to expand throughout the region, closely followed by third-party logistics providers Kuehne & Nagel, Exel, Maersk and Tibbett and Britten.

Though Japan has the larger economy, logistics costs in the undeveloped Chinese market are estimated to be four times higher (about 20% of GDP).

Neighboring economies have benefited from China's growth. Economies which have undergone liberalization and encouraged foreign investment from western manufacturers and retailers will also see high rates of growth in excess of 20% per year. These include Vietnam, Thailand and Malaysia, says Joel Ray, author of the report Asia Pacific Logistics 2004.

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June, 2004

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