(MENAFN-PR Newswire) Most expect expansion in Africa despite cautious outlook in emerging markets
DUBAI, UAE, Feb. 6, 2024 /PRNewswire/ — Global logistics executives, still worried about recession, say they are battling higher costs, reducing dependence on sourcing from China, and planning to boost investment in Africa despite seeing emerging markets investment overall as somewhat 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 carriers are struggling to minimize supply chain risk and find new growth opportunities. Inflation and recession risks have eased, but the industry is still living with the aftershocks of the COVID pandemic. At the same time, businesses are worried about geopolitics — troubled trade relations between China and the U.S. and Europe, and the thicket of sanctions against a growing number of countries,” says Agility Vice Chairman Tarek Sultan.
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 two largest countries in the world, rank first and second in the overall rankings. The United Arab Emirates, Malaysia, Indonesia, Saudi Arabia, Qatar, Vietnam, Mexico, and Thailand rank tenth. South Africa, ranked 24th, and Kenya at 25th, lead among sub-Saharan African countries.
Three of the four countries with the most productive trading 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 up 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 first position a year ago to 5th position 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
CONSULTATION
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. “
2024 Agility Emerging Markets Logistics Index: agility/2024index
About agility
Agility is a global leader in origin chainArray infrastructure and innovation with more than 45,000 workers across six continents. Agility, a multi-business operator and investor, specializes in the expansion and progression of operating businesses. Agility’s corporations include the world’s largest aviation company (Menzies Aviation); a global gas logistics company (Tristar); the market leader in logistics parks in the Middle East, South Asia and Africa (Agility Logistics Parks); and an announcement of a real estate company to be built in a mega shopping mall in the United Arab Emirates (UPAC). Other Agility corporations obtain customs scanning, remote site infrastructure from Array, defense and governance from Array, as well as e-commerce and virtual logistics, Array Agility invests in innovation, sustainability, and supply chain resilience and owns minority stakes in an upcoming portfolio of indexed and non-indexed corporations.
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