China most promising emerging logistics market, India ranks 2nd: Study

China and India were at the top positions for both domestic and international logistics. India jumped four spots to No. 1 in digital readiness, followed by UAE, China, Malaysia, and Qatar, according to the 2023 Agility Emerging Markets Logistics Index.

Arabian Gulf countries—UAE, Qatar, Saudi Arabia, and Oman—again offered the best business conditions. Malaysia, with the fourth best environment for business, was the only non-Gulf country in the top five. 

Nearly 70 per cent of global logistics executives say they are bracing for recession amid higher costs, slowing demand, and ongoing supply chain disruption arising from China’s battle to contain COVID, Russia’s war in Ukraine, and the impact of climate change. 

Ninety percent of the 750 industry professionals surveyed for the 2023 Agility Emerging Markets Logistics Index also say their shipping, storage, and other logistics costs remain well above pre-pandemic levels of early 2020.

Among the several highlights of the 2023 index survey include net-zero commitment and climate change. Around 53 per cent of logistics executives said their companies have committed to net-zero emissions, and another 6.1 per cent said their businesses have achieved net-zero. Moreover, half of the respondents admitted that climate change is a concern their businesses must plan for, while another 18 per cent said it is already affecting them.

“Carriers and shippers are feeling the effects of higher energy prices, tight labour markets, and broader inflation even though freight rates have fallen, and ports have cleared cargo backlogs,” said Agility vice chairman Tarek Sultan. “Three years after the start of the pandemic, there is still a lot of volatility in supply chains. Now there’s fresh uncertainty as consumers and businesses pull back on spending and hiring.”

The survey and Index are Agility’s 14th annual snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index ranks countries for overall competitiveness based on their logistics strengths, business climates, and digital readiness.

ALCHEMPro News Desk (NB)