Market Trends of asia pacific courier, express, and parcel (cep) Industry
Asia-Pacific's Plan Aims to Tackle Soaring Freight Demand, Anticipates Tripled Transport Needs by 2050
- The region's new Regional Action Programme (RAP) addresses issues like increasing freight and passenger volumes and reflecting the rising demand for freight transport and mobility. Two-thirds of global seaborne trade is concentrated in the Asia-Pacific region, which is also home to nine of the world's busiest container ports. The region is responsible for more than 40% of the global surface freight transport flows, and by 2050, the region's demand for freight transport is projected to triple.
- Full-year new logistics supply for Asia-Pacific is expected to reach 167 million sq. ft in 2022, 58% higher than the previous three-year average. The logistics and warehousing sector is undergoing significant changes with increased mergers and acquisitions. Both innovation and sustainability are key factors for the sector, where shorter turnaround times and efficiency in operations are in demand. In 2021, the Suez Canal blockage and new waves of COVID-19 infections constrained manufacturing capacity in India, Thailand, Vietnam, and Indonesia.
- International freight transport remained largely operational throughout the pandemic as countries implemented policy measures to preserve freight transport connectivity to support supply chains. The Asian Highway, Trans-Asian Railway, and dry port networks established under ESCAP auspices serve as the backbone for the region's land transport infrastructure connectivity and logistics. They are also increasingly integrated with inter-regional transport corridors and port and shipping networks. In 2020 and 2021, these links brought countries together to capture and analyze their responses to the pandemic and the impacts of those actions on regional connectivity.
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Crude oil prices are soaring in the Asian economies owing to global uncertainties
- Crude oil reached USD 130 per barrel in March 2022, its highest level since 2008, before retreating to USD 100 per barrel in April of the same year. The factors behind the rise include protracted low investment in global oil production, a decline in the global inventory, and a rise in the demand related to economic recovery from the COVID-19 pandemic. Though the overall economic impact has been modest in Asia-Pacific, the situation can change quickly, subject to the magnitude and duration of oil price increases. Crude oil prices may overshoot, like many commodity and financial prices.
- Due to a strong economic recovery in Asia, oil prices surpassed USD 80 in November 2021, more than double the price in 2020. The price may increase further due to global geopolitical uncertainties and tight supply conditions. Reaching USD 200 is not so farfetched considering that the historic high of USD 140 oil in 2008 translates to over USD 180 in current dollars. Higher oil prices are often economically damaging for net oil importers, impacting real income and hurting growth. Most regional economies are net oil importers except for a few oil exporters, such as Brunei, Malaysia, and Vietnam.
- For the short term, the region must prioritize the rising oil prices and global interest rates and maintain a stable macroeconomic environment of low inflation and prudent fiscal balances. The average price of gasoline around the world remains at USD 116.94 per liter. The price of petrol stands at USD 1.16 per liter in India, USD 0.93 per liter in China, and USD 1.002 per liter in Pakistan. The differences in prices across countries are due to the various taxes and subsidies for gasoline.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- India and China among the leading nations to boost agriculture, fishing, and forestry as economic drivers in APAC
- Record high increases witnessed largely owing to supply chain disruptions amid increasing demand
- The GVA of the manufacturing industry in the region grew by over 5% YoY in 2022
- Asia Pacific economies are registering huge growth in LNG imports, driven by scarce domestic production
- Oil and gas & wholesale and retail trade sectors are the fastest-growing sectors contributing to economic growth in APAC countries
- China is the leading e-commerce market, accounting for over 50% of all retail e-commerce sales worldwide
- Asia Pacific economies are striving toward robust export growth by 2030, driven by government initiatives to boost trade
- Asia-Pacific Investing in Transportation Infrastructure to Boost its Connectivity and Business Opportunity
