Logistics
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Rhenus expands in Southeast Asia with new Singapore air freight gateway
DHL sees opportunity in Indonesia's new energy sector
JD Logistics debuts in Saudi Arabia
Hong Kong maintains 3% export growth forecast despite tariffs
DHL: Early peak season driven by tariff and capacity fluidity
Kuehne+Nagel appoints Marcus Claesson as chief information officer
Alarm bells ring over global truck driver shortages
DHL Group to invest more than €500M in the Middle East
Chengdu-Shenzhen-Hong Kong rail-sea service launches
FedEx boosts APAC healthcare capabilities with CEIV pharma certification
UPS enhances service in Johor, Malaysia to accelerate global delivery
DP World launches logistics hub to accelerate South Africa auto growth
FedEx names new CEO for standalone freight spin-off
Trade policy shifts fuel 20% industrial space growth in Indonesia, Vietnam
DP World to launch US$2.5B logistics infrastructure investment in 2025
DHL Global Forwarding taps Amanda Rasmussen as chief commercial officer
SATS to invest over US$192M to enhance Changi Airport operations
APEC lowers 2025 growth forecast to 2.6%, urges trade policy stability
U.S. slashes ‘de minimis’ tariff on small China parcels to 30%
DHL eCommerce, Evri announce merger to boost parcel delivery network
DHL expands robotics deployment in automation push
U-Freight earns HKAEO accreditation for high security standards
DP World launches first Singapore warehouse, expanding Asian network
PSA BDP takes majority stake in Mexico’s ED Forwarding
DHL acquires US e-commerce logistics company IDS Fulfillment
DHL Global Forwarding makes key appointment in Asia Pacific
Kuehne+Nagel, cargo.one partner to expand digital airline connections
U-Freight sees continued global ecommerce growth despite current risks
deugro Thailand delivers critical reactors for sustainable fuel production
CEVA Logistics signs deal to acquire Borusan Tedarik, expand in Turkey
Port of NY/NJ, WFS opens new US$270M cargo handling center at JFK airport
DP World sources 65% of its electricity from renewables in 2024
UPS boosts healthcare logistics offering with Andlauer acquisition
KLN opens new Netherlands logistics facility to meet e-commerce demand
DHL temporarily halts B2C shipments over US$800 to the US
DSV’s US$16B acquisition of DB Schenker to close on April 30
Hongkong Post halts US parcel shipments amid end of ‘de minimis’ exemptions
DHL Supply Chain launches new pharma hub in Singapore
India ends transshipment facility for Bangladesh exports
DHL delivers world’s first mobile heart clinic in Burundi
EU greenlights DSV's planned acquisition of DB Schenker
DHL to invest EUR500M in Asia Pacific to boost health logistics
DB Schenker APAC and Neste signs MoU on renewable diesel use
Mongolia ratifies agreement for cross-border railway with China
DHL partners with Chinese ecommerce giant TEMU
Emirates launches Emirates Courier Express, an end-to-end delivery service
FedEx expands self-collection network in Hong Kong with Hongkong Post
U.S. ends “de minimis” exemptions for low-cost shipments from China, Hong Kong
Maersk's APM Terminals acquires Panama Canal Railway Company
DHL acquires Cryopdp to strengthen its health logistics
DHL partners with Esyms for medicine distribution in Malaysia
Kerry Logistics rebrands as KLN; reports profit rise in 2024
deugro appoints Steffen Behrens as new chief commercial officer
ASIA-PACIFIC LOGISTICS RENTS SLOW SHARPLY IN 2024 – KNIGHT FRANK
February 13, 2025
Overall rent growth for logistics spaces in Asia-Pacific slowed to just 0.2% in 2024, down sharply from 7% in 2023 and 2% in the first half of 2024, according to the latest Knight Frank Asia-Pacific H2 2024 Logistics Highlights report.
The independent global property consultancy firm noted that this reveals a sector at a crossroads amid geopolitical uncertainties and evolving market dynamics.
Knight Frank said while 14 of 17 tracked cities recorded stable or increasing rents year on year in H2 2024, the report unveils a stark contrast in regional performance.
"This deceleration, however, masks significant market variations across the region."
It noted that markets in the Chinese mainland face headwinds, with Beijing and Shanghai experiencing 14% to 15% rent plunges due to a substantial development pipeline, which is expected to reach over 4 million sqm.
The considerable development pipeline will lift vacancy rates in both cities to nearly 30% in 2025, exerting considerable downward pressure on rents.
In contrast, Melbourne emerged as a top performer with 6.7% growth, driven by land scarcity in key submarkets.
Southeast Asian markets show resilience, with Greater Kuala Lumpur leading half-yearly rental growth of 5% as the completion of higher-quality industrial properties lifted rents.
[Source: Knight-Frank]
Looking ahead, Knight Frank said the potential for increased tariffs under a second Trump administration could accelerate the realignment of global supply chains, both within Asia-Pacific and between regions.
"As the world braces for Trump 2.0, the realignment of supply chains is likely to gather pace in response to planned tariff increases. China-plus strategies, consequently, are expected to take on added urgency as manufacturers focus on further diversifying bases in Southeast Asia and India, strategically leveraging these locations to friend shore operations," said Tim Armstrong, global head of occupier strategy and solutions, Knight Frank.
He noted that occupiers will have to tread a strategic tightrope, focusing on cost management while selectively evaluating their logistics footprint.
"This emphasises logistics hubs that are well-connected to major trade routes. The evolving geopolitical landscape and preference for modernised distribution facilities are expected to continually drive demand for well-located, efficient prime logistics spaces in the region," Armstrong added.
The Asia-Pacific logistics sector is expected to maintain a delicate balance in 2025 despite market fluctuations.
Knight-Frank said occupiers will likely focus on optimising their existing footprints and working through excess capacity, which should help stabilise demand-supply dynamics.
Prime logistics spaces are anticipated to see continued healthy demand, with leasing volumes keeping pace with new supply. As a result, regional vacancy rates are forecast to remain largely stable, supporting moderate rent growth of up to 2%.
Christine Li, head of research, Asia-Pacific, Knight Frank, said a "flight-to-quality" trend will remain supportive of demand for new logistics spaces in the region as occupiers continue to plan for supply chain contingencies and optimise the use of technology in their operations.
"The manufacturing sector is also emerging to be a key source of demand, particularly in high-growth, strategic sectors such as electric vehicles and electronics, as the need for specialised supply chains will reshape the region's trade and logistics landscape."
"Aside from Chinese mainland markets, where excess capacity will continue to depress rents, those in the rest of the region will be supported by more balanced demand-supply dynamics. At the same time, the delivery of new premium facilities in the region's emerging markets will also prop up average rents," Li added.
Meanwhile, Knight Frank noted key trends in 2025, including market transitioning from landlord favourable to more neutral conditions, and well-connected logistic hubs with proximity to source markets are well-placed to navigate an uncertain geopolitical climate.
Leasing volumes are also expected to keep pace with new supply in 2025.
