Asia-Pacific Container Drayage Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 14.36 Billion |
| Market Size (2029) | USD 21.21 Billion |
| CAGR (2024 - 2029) | 8.23 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Container Drayage Market Analysis
The Asia-Pacific Container Drayage Market size is estimated at USD 14.36 billion in 2024, and is expected to reach USD 21.21 billion by 2029, growing at a CAGR of 8.23% during the forecast period (2024-2029).
- The Asia-Pacific container drayage market is mainly driven by the surge in demand for shipping containers due to rapid trade activities. Asia-Pacific, bolstered by its expansive coastal lines and a concentration of manufacturers, particularly in China, is witnessing heightened demand for these containers. Moreover, as governments in regional countries ramp up initiatives and untapped markets like India and Indonesia show promise, future market growth looks promising.
- Asian countries maintain their dominance in cargo handling, with 18 of the top 25 global ports located in Asia. This data, sourced from the Container Port Performance Index (CPPI) by the World Bank and S&P Global Market Intelligence, highlights that Eastern Asia boasts 11 of these top ports, while Western Asia hosts four.
- Asian economies dominated the global connectivity landscape in Q2 2023, with China leading the market. The Republic of Korea, Singapore, and Malaysia followed closely. Each of these nations saw their Liner Shipping Connectivity Index (LSCI) rise by 3% to 5% compared to the previous year, hitting all-time highs in their index values.
- In 2023, China dominated the Asia-Pacific shipping container market, underpinned by its robust demand for commodities and heavy reliance on seaborne trade. While factors like a surge in cargo transportation demand and trade agreements bolster the market, fluctuations in transportation and inventory costs pose challenges. However, the market is poised for growth, with automation trends in marine transportation and heightened safety norms offering further opportunities.
Asia-Pacific Container Drayage Market Trends
Port Congestion Easing in Key Asian Hubs, Surge in Demand for Container Drayage Driving the Transportation Segment
- By June 2024, major ports in North and Southeast Asia have seen a notable drop in vessel delays, with China also marking an uptick in equipment availability. However, reports from ocean carriers and forwarders underscore a mounting congestion challenge in India. Executives in the shipping industry across Asia have highlighted that while ports like Singapore, Ningbo, Qingdao, and Klang in Malaysia are witnessing fewer vessel delays, the demand for container drayages is on the rise.
- Although congestion in Singapore has slightly alleviated, carriers are increasingly turning to Malaysian ports like Klang and Tanjung Pelepas. Tanjung Pelepas, in particular, saw a 20% surge in container volumes in the first half of 2024, partly due to diversions from Singapore. Similarly, Northport in Klang recorded a notable 26% uptick in container volumes in May 2024, reaching 335,361 TEUs compared to the previous year, largely fueled by ad-hoc carrier calls.
- While there has been a modest improvement in wait times in Singapore, ranging from two to three days, the wait times, though reduced, still vary significantly based on the carrier and service. Notably, research highlighted delays in the Asia-Europe Far East Pacific 1 service, primarily due to severe congestion in Singapore. Although delays peaked at eight days by the end of May 2024, they have since reduced to a maximum of five days on some FP1 sailings.
- Elsewhere, Hapag-Lloyd reported that wait times had decreased to two days in Ningbo and less than 24 hours in Qingdao, compared to up to three days at the end of April 2024. Data indicates an improvement in Singapore, with vessels waiting at anchorage dropping from 350,281 TEUs on June 15, 2024, to 286,778 TEUs by the end of June. However, the total capacity waiting to berth has seen an uptick since early May 2024.
- While equipment availability in China has shown signs of improvement, especially in ports like Dalian and Taiwanese ports for 20-foot containers, there is still a noticeable tightness in central China, particularly in areas like Wuhan. On the other hand, Mundra, India's primary container gateway, is grappling with mounting pressure from escalating transshipment volumes. Some carriers plying between Singapore and Dubai have curtailed sailings at Mundra to prioritize other Asian ports.
- Recent trade updates underscore that container dwell times at Mundra have significantly lengthened, attributed to sluggish import clearance in congested container yards. Indian container rail operators (CTOs) are pointing fingers at the port for train turnaround disruptions, leading to additional charges for importers. CTO sources reveal that yard backlogs for railed freight have doubled, now averaging 15 to 20 days, up from the usual seven to nine days. Notably, approximately half of Mundra's traffic is rail-bound.
- With the circumstances escalating, the Association of Container Train Operators has hinted at a potential force majeure declaration from the port authority. Simultaneously, the Container Shipping Lines Association (India) is urging swift action from the port to smoothen cargo flows.
Surge in Demand for Trade in China Driving the Market
- US Retail Inventories and Sales Growth: From January to April 2024, US retail inventories climbed steadily, starting at USD 769.3 billion and reaching USD 793.5 billion. Notably, sectors like motor vehicles and building materials saw pronounced upticks.
- Continued Retail Sales Growth: In May 2024, retail sales in the United States inched up by 0.1% from the previous month and 2.3% from the prior year. Core retail sales, which exclude automobile dealers, gasoline stations, and restaurants, saw a 0.3% monthly increase and a 2.9% yearly rise. These figures closely mirror the NRF's projected 2.5% to 3.5% growth for 2024.
- The surge in US retail inventories, especially in motor vehicles and building materials industries, signals a robust demand for container shipping services. This uptick is poised to drive an increased necessity for container shipments from China, a pivotal manufacturing hub.
- China's ports, recording a 9% Y-o-Y surge, processed a staggering 104.03 million TEUs in the initial four months of 2024. Simultaneously, foreign trade cargo saw a 9.1% Y-o-Y upswing.
- Noteworthy is the overall cargo throughput, which hit 5.55 billion tonnes in 2024, marking a 5.2% uptick from the preceding year's figures.
Asia-Pacific Container Drayage Industry Overview
The Asia-Pacific container drayage market is fragmented. Key players in this market include Maersk Asia Pacific, Agility, C H Robinson Worldwide Inc., FedEx Corp., and Deutsche Post DHL Group.
The leading companies are focusing on various strategic areas to maintain their competitive edge. Digital transformation and automation in operational processes are increasingly emphasized to improve efficiency and reduce operational costs.
Asia-Pacific Container Drayage Market Leaders
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Maersk Asia Pacific
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Agility
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C H Robinson Worldwide Inc.
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FedEx Corp.
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Deutsche Post DHL Group etc.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Container Drayage Market News
- July 2024: DP World, the Dubai-based ports and logistics leader, unveiled 51 fresh freight forwarding offices in the Asia-Pacific. These new offices, specializing in air and ocean freight, leverage DP World's robust infrastructure, spanning ports, terminals, warehouses, trucks, rail, and vessels.
- February 2024: HERE Technologies, a leading provider of location data and technology solutions, partnered with PSA Singapore, the operator of the world's largest transshipment hub, to transform Singapore's container truck ecosystem. Their goal is to boost the efficiency of goods transportation within Singapore's terminals. Singapore, a global maritime leader, hosts the world's second busiest container port, the Port of Singapore. PSA's network spans 600+ ports globally, and in the previous year, it managed an impressive 38.8 million TEUs.
Asia-Pacific Container Drayage Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Increasing Railway Trade
4.2.1.2 Growing E-commerce Sector
4.2.2 Restraints
4.2.2.1 Port Congestion Delaying Cargo Pick-up and Delivery
4.2.2.2 Risk of Incurring Avoidable Costs
4.2.3 Opportunities
4.2.3.1 Technological Advancements Driving the Market
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain/Supply Chain Analysis
4.5 Insights into Industry Policies and Regulations
4.6 Insights into Technological Integration
4.7 Insights into E-commerce Industry in Asia-Pacific
4.8 Brief on Asia-Pacific Container Datapoints
4.9 Spotlight - Freight Transportation Costs/Freight Rates
4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Mode of Transport
5.1.1 Rail
5.1.2 Road
5.1.3 Other Modes of Transport
5.2 By Geography
5.2.1 China
5.2.2 Japan
5.2.3 India
5.2.4 South Korea
5.2.5 Indonesia
5.2.6 Vietnam
5.2.7 Australia
5.2.8 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Maersk Asia Pacific
6.2.2 Agility
6.2.3 C H Robinson Worldwide Inc.
6.2.4 FedEx Corp.
6.2.5 Deutsche Post DHL Group
6.2.6 Hitachi Ltd
6.2.7 CMA CGM SA Group
6.2.8 DB Schenker
6.2.9 United Parcel Services Inc.
6.2.10 Ceva Logistics
6.2.11 Yusen Logistics Co. Ltd*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OUTLOOK OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators
8.2 Insight into Capital Flows (Investments in Transport and Storage Sectors)
8.3 External Trade Statistics
Asia-Pacific Container Drayage Industry Segmentation
Container drayage shipping involves the short-distance movement of container freight within metropolitan areas, typically under 50 miles. It serves as a vital link, connecting ports, facilities, rail yards, and other shipping hubs. This transportation, predominantly handled by trucks, is an integral component of intermodal transport. Drayage operations commonly involve transporting containers or cargo from the port of discharge to the customer's location or the nearest rail depot. Conversely, at the point of origin, drayage entails moving cargo from the manufacturer's site to the loading port. Furthermore, drayage encompasses movements to and from warehouses and container freight stations. Given its significance, drayage plays a pivotal role in enabling crucial first- and last-mile deliveries, making it a focal point for many transport providers aiming to provide comprehensive end-to-end logistics solutions.
The Asia-Pacific container drayage market is segmented by mode of transport (rail, road, and other modes of transport) and geography (China, Japan, India, South Korea, Indonesia, Vietnam, Australia, and Rest of Asia Pacific). The Asia-Pacific container drayage market report offers market sizes and forecasts in value (USD) for all the above segments.
| By Mode of Transport | |
| Rail | |
| Road | |
| Other Modes of Transport |
| By Geography | |
| China | |
| Japan | |
| India | |
| South Korea | |
| Indonesia | |
| Vietnam | |
| Australia | |
| Rest of Asia-Pacific |
Asia-Pacific Container Drayage Market Research FAQs
How big is the Asia-Pacific Container Drayage Market?
The Asia-Pacific Container Drayage Market size is expected to reach USD 14.36 billion in 2024 and grow at a CAGR of 8.23% to reach USD 21.21 billion by 2029.
What is the current Asia-Pacific Container Drayage Market size?
In 2024, the Asia-Pacific Container Drayage Market size is expected to reach USD 14.36 billion.
Who are the key players in Asia-Pacific Container Drayage Market?
Maersk Asia Pacific, Agility, C H Robinson Worldwide Inc., FedEx Corp. and Deutsche Post DHL Group etc. are the major companies operating in the Asia-Pacific Container Drayage Market.
What years does this Asia-Pacific Container Drayage Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Container Drayage Market size was estimated at USD 13.18 billion. The report covers the Asia-Pacific Container Drayage Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Container Drayage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Container Drayage Industry Report
Statistics for the 2024 Asia-Pacific Container Drayage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Container Drayage analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
