Report : recession concerns and market diversification in global logistics
Major players in international logistics remain wary of recession threats in 2024 and seek to reduce their reliance on China. Despite these challenges, most are looking to explore new opportunities in Africa, albeit with cautious outlooks on emerging markets.
By the Editorial Team
Leaders in the international logistics sector, still concerned about recession, state that they are combating rising costs, reducing their dependence on China, and planning to increase investments in Africa, though they view investments in emerging markets overall as riskier.
According to the 2024 Agility Emerging Markets Logistics Index, about half of the 830 surveyed professionals anticipate a global recession in the coming year, a decrease from the previous year. This trend accompanies supply chain restructuring, with over 63% of respondents considering spreading production across multiple sites or relocating it to domestic or neighboring markets. China, as a major player in global production, is most likely to be affected by these changes, with nearly 37.4% of professionals considering moving their production out of the country or reducing their investments.
Tarek Sultan, Vice Chairman of Agility, emphasizes that logistics players are striving to minimize risks and find new growth opportunities. Challenges persist, notably due to the ongoing consequences of the COVID-19 pandemic, geopolitical tensions, and global economic uncertainties.
Agility’s annual index evaluates the competitiveness of emerging markets based on their logistics strengths, business climate, and digital readiness. While transportation and logistics costs continue to rise, freight forwarders anticipate increased use of digital freight transportation to address this situation.
Africa is emerging as an attractive investment market, with nearly 62% of professionals considering additional or initial investments on the continent
« Africa is emerging as an attractive investment market, with nearly 62% of professionals considering additional or initial investments on the continent, » says Sultan.
Meanwhile, Africa is emerging as an attractive investment market, with nearly 62% of professionals considering additional or initial investments on the continent. This contrasts with the caution observed towards emerging markets as a whole.
In the country rankings, China and India maintain their top positions, while the United Arab Emirates, Malaysia, Indonesia, Saudi Arabia, Qatar, Vietnam, Mexico, and Thailand complete the top 10. South Africa and Kenya stand out as the highest-ranked countries in sub-Saharan Africa.
Logistics players are gearing up for diverse challenges and opportunities in 2024, with particular attention to risk reduction, market diversification, and exploring new avenues of growth.
Agility is a global leader in supply chain services, infrastructure, and innovation with over 45,000 employees across six continents. As a multi-enterprise operator and investor, Agility specializes in operational business growth and expansion. Agility’s businesses include the world’s largest aviation services company (Menzies Aviation); a global fuel logistics company (Tristar); the leading market player in logistics parks in the Middle East, South Asia, and Africa (Agility Logistics Parks); and a commercial real estate company developing a mega shopping center in the United Arab Emirates (UPAC). Other Agility companies offer customs digitization services, remote site infrastructure services, defense and government services, as well as e-commerce and digital logistics services. Agility invests in innovation, sustainability, and supply chain resilience and holds minority stakes in a growing portfolio of listed and unlisted companies.
For more information : www.agility.com
