Latest news from Heavy Lift & Project Forwarding International Magazine

Opportunities in emerging markets

The logistics industry forecasts that emerging markets will grow at a healthy rate of 5 percent in 2019 but many executives are bracing for a crisis, according to Agility’s emerging market index.

In Agility’s annual index, compiled in cooperation with Transport Intelligence (Ti), 47.1 percent of logistics executives surveyed said an emerging markets crisis is ‘likely’ or ‘highly likely’, as US-China trade tensions continue amid interest rate and currency volatility, as well as Brexit uncertainty.

“Companies looking for opportunity are finding it in emerging markets, where small and medium-sized enterprises with access to technology and mobile banking are increasingly driving growth,” said Essa Al-Saleh, ceo of Agility Global Integrated Logistics. “At the same time, logistics professionals worry that these markets are vulnerable to ripple effects from big geopolitical setbacks.”

He added that, while these concerns are valid, emerging markets are growing at roughly twice the rate of developed economies. “What’s most heartening is that many now appear resilient enough to avoid the sort of contagion we saw spreading among emerging markets in 2013 and 2008,” said Al-Saleh.

The index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.

China topped the rankings for both domestic and international logistics, followed by India in each category. The UAE, Malaysia and Qatar, meanwhile, were the top three countries in terms of business fundamentals, which include regulatory environment, anti-corruption safeguards, price stability and market access.

The strongest clusters of emerging markets are in the Middle East Gulf and Southeast Asia, said Agility, which attributed this to business-friendly conditions and core strengths – the Gulf’s energy wealth and Southeast Asian manufacturing power – attracting logistics activity.

John Manners-Bell, chief executive of Ti, concluded: “This year’s index highlights the range of challenges and opportunities many markets face. The uncertainty which surrounds trading relationships, combined with implementation of new trade barriers, threatens to derail integration of emerging markets with the rest of the world.

“It is essential that obstructive trade policy does not stand in the way of commercial opportunities which help drive growth in emerging markets.”

www.agility.com

www.ti-insight.com


 

Heavy Lift | News

Multipurpose charter rates rise thumbnail image

Multipurpose charter rates rise

August 13 - Time charter rates in the multipurpose shipping sector have improved slightly over the last month, according to the latest data from shipbroker Toepfer Transport.
Views: 997
Tariffs taking their toll thumbnail image

Tariffs taking their toll

August 9 - Last week, US President Donald Trump said that an additional 10 percent tariff will be imposed on Chinese-origin goods effective September 1, 2019.
Views: 1228
Mixed fortunes in North America  thumbnail image

Mixed fortunes in North America 

August 8 - In announcing its second-quarter financial results, heavy haulage and crane solutions provider, Entrec, said the outlook for its business in the USA continues to be positive, but warns that a more cautious approach is needed in Canada. 
Views: 1243
Maersk sets ambitious logistics goals thumbnail image

Maersk sets ambitious logistics goals

July 10 - A.P. Møller Mærsk reportedly wants half of its earnings to come form inland logistics, according to a report in the Wall Street Journal (WSJ).
Views: 3824

Heavy Lift Across The World

Discover heavy lift and project logistics industry news from around the world by region.