Most expect expansion in Africa despite cautious outlook in emerging markets
DUBAI, United Arab Emirates, Feb. 6, 2024 /PRNewswire/ — Global logistics leaders, still worried about the recession, say they are suffering from higher costs, reducing their reliance on sourcing from China and plan to breathe life into investment in Africa in Despite the overall increase in investment in emerging markets, it seems a bit riskier.
Half of the 830 industry professionals surveyed for the 2024 Agility Emerging Markets Logistics Index expect a global recession in the coming year – down from nearly 70% a year ago.
More than 63% of respondents say their companies continue to redesign their supply chains, distributing production across locations or relocating it to domestic markets and neighboring countries. China, the world’s largest producer, will be the most affected: 37. 4% of professionals in the sector. they say they plan to move their production/source out of China or reduce their investments there.
“Shippers and shippers are struggling to minimize the dangers of the origin chain and new opportunities for growth. The dangers of inflation and recession have subsided, but the industry continues to live with the aftershocks of the COVID pandemic. At the same time, corporations are preoccupied with geopolitics. industrial relations between China, the United States and Europe, and sanctions against a number of developing countries,” said Tarek Sultan, vice president of Agility.
The survey and index are Agility’s 15th annual snapshot of industry sentiment and rating of the world’s 50 most sensitive emerging markets. The index ranks countries based on their overall competitiveness, logistical strengths, business climate, and virtual readiness, points that get them excited about logistics. suppliers, freight forwarders, air and sea carriers, distributors and investors.
Shipping and logistics prices triggered by the COVID pandemic and its aftermath continue to rise, albeit at a slower pace, according to the survey. One of the tactics that shippers plan to address this challenge is to increase the use of virtual transportation by 37. 8%. today at 52% in five years.
Meanwhile, the industry is gearing up for further investment in Africa. Nearly 62% of professionals say their corporations are making additional plans or initial investments in Africa, compared to only about 7% who are abandoning or cutting back on their investments in Africa.
China and India, the world’s two largest countries, held their spots at No. 1 and 2 in the overall rankings. UAE, Malaysia, Indonesia, Saudi Arabia, Qatar, Vietnam, Mexico, and Thailand rounded out the top 10. No. 24 South Africa and 25 Kenya were highest among countries in Sub-Saharan Africa.
Three of the four countries with the most productive trade situations in emerging markets are in the Persian Gulf: the United Arab Emirates (1), Saudi Arabia (3) and Qatar (4). Malaysia (2) and Jordan (5) moved in the business fundamentals rating.
China and India led the way in domestic and foreign logistics. In terms of virtual preparedness, China moved up three places to the most sensible list, followed by the United Arab Emirates, Malaysia and Qatar. India has risen from the top position a year ago to 5th place this year.
Outside of the sensible top 10, many of the significant maximum adjustments in ratings year-over-year are for countries in conflict, facing foreign economic sanctions, or suffering from chronic economic instability. Among them: Ukraine, Russia, Iran, Ethiopia, Argentina, Lebanon, Tunisia.
2024 Index Highlights
RESEARCH
COUNTRY RANKINGS
Transport Intelligence (Ti), a leading logistics industry analyst and company, has been compiling the index since its publication in 2009.
John Manners-Bell, CEO of IT, said: “Supply chain managers are still grappling with the political and economic instability that characterises the post-COVID global economy. Geopolitical relations are rapidly transforming, which has a primary effect on foreign relations. “
Agility Emerging Markets Logistics Index 2024: agility. com/2024index
About Agility
Agility is a global leader in supply chain services, infrastructure, and innovation with 45,000+ employees across six continents. A multi-business operator and investor, Agility specializes in growing and scaling operating businesses. Agility’s companies include the world’s largest aviation services company (Menzies Aviation); a global fuel logistics business (Tristar); the market leader in logistics parks across the Middle East, South Asia, and Africa (Agility Logistics Parks); and a commercial real-estate company developing a mega-mall in the UAE (UPAC). Other Agility companies offer customs digitization services, remote-site infrastructure services, defense and government services, and ecommerce-enablement and digital logistics. Agility invests in supply chain innovation, sustainability, and resilience, and has minority holdings in a growing portfolio of listed and non-listed companies.
To learn more about Agility, visit: www. agility. com
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