New Zealand Freight And Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 17.71 Billion |
| Market Size (2029) | USD 20.75 Billion |
| CAGR (2024 - 2029) | 3.21 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
New Zealand Freight And Logistics Market Analysis
The New Zealand Freight And Logistics Market size is estimated at USD 17.71 billion in 2024, and is expected to reach USD 20.75 billion by 2029, at a CAGR of 3.21% during the forecast period (2024-2029).
- In the Waikato region, vital transport corridors like State Highway 1 and the main trunk rail line underscore the significance of the Freight and Logistics sector as a key economic driver. In New Zealand, road freight leads the way, constituting nearly 70% of freight movement by ton-kilometre and surpassing 90% by volume. While rail may be on a smaller scale, it plays a crucial role in connecting major cities such as Auckland, Tauranga, and Hamilton.
- Looking forward, projections indicate that over 90% of freight will continue to be road-based. The Golden Triangle region, encompassing Auckland, Tauranga, and Hamilton, is set to manage 42% of the nation's total freight. This demand surge over the next 25 years is attributed to population growth and economic expansion. Between 2020 and 2030, freight volumes in the Waikato and Bay of Plenty regions could witness a rise of 47% to 65%, underscoring the urgent need for enhanced logistics infrastructure and workforce development.
- In Waikato, the sector boasts a workforce of over 7,000, with a pronounced demand for skilled positions such as truck drivers and logistics planners. The workforce leans male and is predominantly low-skilled, increasingly leaning on migrant labor, especially in postal and courier services. Yet, challenges loom with intensifying workforce shortages in truck driving and logistics. In response, there's a concerted effort to expand training programs and higher education avenues.
- A pivotal initiative, the Freight Action Plan for the Golden Triangle, underscores the urgency to bolster network capacity, tackle skills shortages, and adopt emerging technologies like hydrogen. While the sector stands on the brink of growth, it grapples with challenges in workforce attraction and infrastructure expansion.
New Zealand Freight And Logistics Market Trends
Increase in cross-border trade driving the market
- The EU-New Zealand Free Trade Agreement (FTA) is poised to reshape the freight and logistics landscape, bolstering trade volumes and unveiling fresh prospects for logistics providers in both territories. With the FTA dismantling trade barriers, there's an anticipated surge in demand for transporting goods—ranging from agricultural produce and consumer items to premium exports like wine and specialty foods.
- EU exporters, benefiting from zero tariffs on exports to New Zealand and streamlined access to New Zealand's government contracts, are set to amplify shipments in sectors such as agriculture, electronics, and machinery. Projected annual growth of up to EUR 4.5 billion in EU exports to New Zealand signals a notable uptick in freight volumes between the two regions. This escalation will challenge current logistics infrastructures, necessitating expanded capacities in shipping, air freight, and overland transport, especially for in-demand goods like pork, wine, and specialty items.
- To manage this heightened trade volume, logistics providers must refine operations and boost efficiency. The FTA's emphasis on digital trade and streamlined cross-border transactions heralds a wave of innovation in logistics. This includes harnessing digital tools for shipment tracking, optimizing customs processes, and minimizing paperwork. Coupled with technological advancements, this will forge a more agile and efficient supply chain between the EU and New Zealand.
- Moreover, the FTA's dedication to sustainability might steer the logistics sector towards greener technologies, such as low-emission vehicles and energy-efficient shipping, aligning with environmental benchmarks.
- An anticipated 80% surge in EU investments in New Zealand could further amplify the demand for infrastructure enhancements—think freight hubs, warehouses, and transport networks—propelling the logistics sector's growth. In essence, the EU-NZ FTA is set to invigorate the freight and logistics market, amplifying trade volumes and ushering in a wave of digital and sustainable innovations.
E-commerce Growth in New Zealand is Driving the Logistics Sector
- New Zealand's booming e-commerce scene is reshaping its freight and logistics landscape. Factors like widespread internet access, rising smartphone adoption, and the allure of omnichannel shopping are propelling online sales. Projections indicate e-commerce sales will jump from NZD 5.55 billion in 2023 to NZD 6.53 billion in 2024, pushing logistics firms to scale up operations to manage the surge in goods transport.
- Grocery shopping, which makes up 25% of online purchases, intensifies the demand for logistics. As online grocery shopping gains traction, retailers are pressed to establish supply chains adept at handling perishables and offering swift delivery options. Beyond groceries, sectors like clothing and general retail are witnessing a surge in online spending, necessitating expanded warehousing and distribution capabilities to manage the influx of orders.
- Omnichannel shopping, where consumers scout online before purchasing in-store, amplifies logistics demands. Businesses must adeptly manage inventory across platforms, integrating systems for real-time stock tracking and smooth order fulfillment, be it direct shipping or in-store pickups.
- The international e-commerce surge, coupled with diverse payment methods, is amplifying cross-border logistics. Both local and international retailers are racing to transport goods efficiently, meeting consumer demands. Embracing technologies like AI and blockchain is streamlining supply chains, enhancing route optimization, real-time tracking, and bolstering security, aligning logistics firms with e-commerce expectations.
- With rising consumer demand for eco-friendly practices, sustainability is becoming paramount in New Zealand's logistics. From green shipping and reduced packaging waste to optimized delivery routes, logistics firms are innovating to resonate with the eco-conscious consumer. In essence, as e-commerce flourishes in New Zealand, the freight and logistics sector is evolving, emphasizing efficiency, scalability, and sustainability.
New Zealand Freight And Logistics Industry Overview
The New Zealand freight and logistics market is fragmented, with the presence of both international and local players. The market is rapidly evolving, driven by e-commerce growth, heightened consumer expectations, and a push for efficiency and sustainability. Competition is shaped by factors like service diversification, tech innovation, customer service, and a commitment to environmental sustainability. Major players include Mainfreight, Toll Group, and NZ Post, with a notable emphasis on e-commerce. As the market grows, challenges like labor shortages and rising operational costs persist, but the outlook remains positive, especially for those prioritizing integrated solutions and sustainability.
New Zealand Freight And Logistics Market Leaders
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Deutsche Post DHL Group
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FedEx Corporation
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Mainfreight Limited
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New Zealand Post Ltd.
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Toll Group
*Disclaimer: Major Players sorted in no particular order
New Zealand Freight And Logistics Market News
- June 2024: GAC Group, a prominent player in shipping, logistics, and marine services across the Asia-Pacific, has inked a deal with Quadrant Pacific to take over its agency business. Quadrant Pacific was previously GAC's network partner in New Zealand. This move underscores GAC's deep-rooted commitment and presence in the region.
- May 2024: Kotahi, New Zealand's top containerized freight manager, inked a second long-term freight agreement with global logistics giant Maersk. This deal, extending to December 2034, aims to bolster a stable, resilient, and sustainable global supply chain for New Zealand's primary industry exporters in international trade.
New Zealand Freight And Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Developments in the Market
4.3 Government Regulations and Initiatives
4.4 Industry Value Chain/Supply Chain Analysis
4.5 Brief on Freight Transportation Costs/Freight Rates in New Zealand
4.6 Spotlight on the E-commerce Market
4.7 Brief on the 3PL Market in New Zealand
4.8 Insights into the Courier, Express, and Parcel (CEP) Market
4.9 Demand and Supply Analysis
4.10 Commentary on Trucking Operating Costs
4.11 Spotlight on Key Logistics Hubs and Cities in New Zealand
4.12 Impact of Geopolitics and Pandemic on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in global trade activites
5.1.2 Increase in infrastrustrure and construction
5.2 Market Restraints
5.2.1 Geographical challenges contribute to increased transportation costs
5.3 Market Opportunities
5.3.1 Expanding demand for its agriculture and other export products
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitutes
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Function
6.1.1 Freight Transport
6.1.1.1 Road
6.1.1.2 Shipping and Inland Water
6.1.1.3 Air
6.1.1.4 Rail
6.1.2 Freight Forwarding
6.1.3 Warehousing
6.1.4 Value-added Services and Other Functions
6.2 By End-User
6.2.1 Manufacturing and Automotive
6.2.2 Oil and Gas, Mining, and Quarrying
6.2.3 Agriculture, Fishing, and Forestry
6.2.4 Construction
6.2.5 Distributive Trade (Wholesale and Retail Segments (FMCG Included))
6.2.6 Other End-Users (Telecommunication, Pharmaceuticals, and F&B)
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Deutsche Post DHL Group
7.2.2 Yusen Logistics Co. Ltd.
7.2.3 Hellmann Worldwide Logistics Limited
7.2.4 CEVA Logistics
7.2.5 Linfox Pty Ltd.
7.2.6 Kuehne + Nagel International AG
7.2.7 FedEx Corporation
7.2.8 DB Schenker
7.2.9 DSV
7.2.10 Mainfreight Limited
7.2.11 Cardinal Logistics
7.2.12 Carrolls Cartage Limited
7.2.13 First Global Logistics
7.2.14 TIL Logistics Group Limited
7.2.15 Toll Group
7.2.16 K&S Corporation Limited
7.2.17 Online Distribution Ltd.
7.2.18 Freightways Ltd.
7.2.19 New Zealand Post Ltd.*
- *List Not Exhaustive
7.3 Other Companies (Key Information/Overview)
8. FUTURE OUTLOOK OF THE MARKET
9. APPENDIX
9.1 GDP Distribution, by Activity and Region
9.2 Insights into Capital Flows
9.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy
9.4 External Trade Statistics - Export and Import, by Product
9.5 Insights into Key Export Destinations
9.6 Insights into Key Import Origin Countries
New Zealand Freight And Logistics Industry Segmentation
Freight and logistics refer to the transportation of goods in the domestic and international markets via various modes of transportation, including air, rail, and roadways.
The report includes a complete background analysis of the New Zealand freight and logistics market, including an assessment of the economy and the contribution of sectors to the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends.
The New Zealand Freight and Logistics Market is segmented by function (freight transport [air, shipping, and inland water, road, and rail], freight forwarding, warehousing, and value-added services and other functions) and end-user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade [wholesale and retail], and other end users [telecommunication, pharmaceuticals, and F&B]).
The report offers market size and forecasts for the New Zealand freight and logistics market in terms of value (USD) for all the above segments.
| By Function | ||||||
| ||||||
| Freight Forwarding | ||||||
| Warehousing | ||||||
| Value-added Services and Other Functions |
| By End-User | |
| Manufacturing and Automotive | |
| Oil and Gas, Mining, and Quarrying | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Distributive Trade (Wholesale and Retail Segments (FMCG Included)) | |
| Other End-Users (Telecommunication, Pharmaceuticals, and F&B) |
New Zealand Freight And Logistics Market Research FAQs
How big is the New Zealand Freight And Logistics Market?
The New Zealand Freight And Logistics Market size is expected to reach USD 17.71 billion in 2024 and grow at a CAGR of 3.21% to reach USD 20.75 billion by 2029.
What is the current New Zealand Freight And Logistics Market size?
In 2024, the New Zealand Freight And Logistics Market size is expected to reach USD 17.71 billion.
Who are the key players in New Zealand Freight And Logistics Market?
Deutsche Post DHL Group, FedEx Corporation, Mainfreight Limited, New Zealand Post Ltd. and Toll Group are the major companies operating in the New Zealand Freight And Logistics Market.
What years does this New Zealand Freight And Logistics Market cover, and what was the market size in 2023?
In 2023, the New Zealand Freight And Logistics Market size was estimated at USD 17.14 billion. The report covers the New Zealand Freight And Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the New Zealand Freight And Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
New Zealand Freight And Logistics Industry Report
Statistics for the 2024 New Zealand Freight and Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. New Zealand Freight and Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
New Zealand Freight And Logistics Market Report Snapshots
