Logistics article(s)
FedEx names new CEO for standalone freight spin-off
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
SC Port's Inland Port Greer expands capacity by 50%
DHL transports 17 endangered Mountain Bongo antelopes from Florida to Kenya
Hong Kong exporters remain positive despite growing trade tensions
UN agencies express grave concern over increased satellite interference
Finnair, DB Schenker partner to reduce GHG emissions for cargo transport
Kuehne+Nagel boosts Asia growth with enhanced Thailand LCL solution
Kazakhstan aims to boost cargo transit via the Middle Corridor
Industry urged to accelerate warehouse modernisation, automation – Zebra
GEODIS ramps up sustainability efforts with a nnew biofuel truck fleet in the UAE
Trump halts Canada, Mexico tariffs again for another month
CK Hutchison sells int'l ports business to BlackRock, MSC for US$22.8B
Alibaba, Maersk partner on container shipping services
Kuehne+Nagel bags Sanofi fulfilment services in Türkiye
Neutral Air Partner launches NAPay with CargoWALLET
HKIA accelerates investments in infrastructure, digitalization
DHL moves to grab larger slice of returns
Software provider opens door for airline premium ecommerce service
Hactl sees cargo boost from Hong Kong’s new three-runway system
Kuehne+Nagel inaugurates Rolls-Royce engine fulfilment centre in Dubai
Rating
ASIA-PACIFIC LOGISTICS RENTS CONTINUED TO RISE IN THE SECOND HALF OF 2023 LED BY MANILA
February 14, 2024
Logistics rents in the region continued to grow, according to Knight Frank, powered by an acceleration in rental growth in Manila.
In its latest research, Asia-Pacific Logistics Markets report for H2 2023, the independent global property consultancy firm — which tracks prime logistics rents across 17 key cities said Asia-Pacific's (APAC) logistics industry — said overall prime logistics rents in the region continued their upward trajectory to grow 6.2% year-on-year in H2 2023.
However, the report shows a slowdown in short-term momentum, with a 1.5% increase in rental growth, compared with 4.6% for H1 2023.
Knight Frank said of the 17 cities tracked by the index, 13 cities recorded stable or increased rents in H2 2023, compared with 16 in the prior six months.
[Source: Knight-Frank]
Meanwhile, rental growth was led by Manila, which rose to 39.3% annually and 7.3% from 6 months ago amid the rapid expansion of the e-commerce sector fueled the rise.
For the period, Beijing and Shanghai registered notable rental declines as a sluggish economy weighed on demand amid the substantial supply pipeline.
"In H2 2023, leasing activity in the Chinese Mainland's logistics sector faced challenges due to a weakened economy and substantial new developments in key markets such as Beijing and Shanghai," Knight-Frank said in the report.
It added that the significant slowdown in total trade in 2023 reduced the demand for logistics warehousing space.
"In response, landlords opted to implement significant rent reductions to facilitate the leasing process and adapt to changing market dynamics," the global property consultancy firm said.
The report added that while rents have continued to rise, the structural shortage of quality spaces is expected to constrain growth, resulting in a sharp moderation of rental increases to between 1 to 3% in 2024, compared with the over 6% rise observed in 2023.
"As logistics occupiers continue to dial back on expansionary ambitions, it is becoming apparent that the supply-demand imbalance that had fueled the region's steep rental growth is waning," commented Tim Armstrong, global head of occupier strategy and solutions at Knight Frank. "However, the Red Sea conflict is a reminder that global supply chains remain vulnerable to disruptions."
"The region's ample development pipeline is an opportunity for occupiers to review their logistics footprint," he added, noting that leasing activity is expected to turn more selective with take-up from occupiers seeking strategically located prime logistics spaces that are automated and compliant with sustainability standards.
Christine Li, head of research Asia-Pacific, added that the supply of logistics space will remain "considerable" in 2024 due to an ample development pipeline and growing sublease availabilities.
"However, its impact will be uneven across the region. Strong pre-commitments in Pacific markets are keeping vacancies tight while Southeast Asia and India will continue to benefit from supply chain diversification," Li said.
"In contrast, Chinese mainland markets will likely require some time to absorb a substantial pipeline, given the sluggish economy. While the appetite for expansion among logistics occupiers has cooled, demand fundamentals in the region remain robust," she added, noting that global trade and production converge in the region while the need for supply chain resilience will continue to underpin demand.
