Challenges in business volumes and transportation hindered the logistics sector’s growth.
In November 2024, Singapore’s logistics sector showed a slight deceleration, with the Logistics Growth Index (LGI) dropping from 52.2 to 51.9 points, signaling slower growth compared to the previous month. Despite this, the sector has continued to expand for 51 consecutive months, beginning from August 2020.
Contributing Factors to Slower Growth
The decline in business volumes, transportation, and warehousing were significant factors behind the slowdown. The business volume index decreased by 0.7 points to 52.7, while the transportation index fell by 0.5 points to 53.3. The warehousing index also saw a slight dip of 0.2 points to 50.3.
Additionally, there was a decrease in growth rates for business sentiment, transport capacity, logistics costs, warehouse capacity, and goods for sale, reflecting a more cautious outlook in the sector. Of note, the logistics cost index saw the most significant decline, dropping by 1.1 points to 53.6, although it remained in expansionary territory for the 40th consecutive month.
Regional Performance
While Singapore’s logistics sector faced some challenges, the Asia-Pacific region experienced a faster pace of growth for the same period, suggesting that the global logistics industry remains resilient despite local setbacks.
In conclusion, while Singapore’s logistics sector continues to expand, the slower growth in November reflects ongoing challenges, particularly in transportation and warehousing. The industry will need to navigate these obstacles to maintain its upward trajectory into 2025.
