Logistics industry shakes off year of emerging markets doubts

Growth opportunities offered by emerging markets outweigh concerns about the political and economic turmoil that rattled some developing countries in 2013, a survey of global logistics and trade executives shows.

Seventy-four percent of logistics professionals view prospects for emerging markets as “good” or “very good” for 2014, an annual survey of industry executives shows. Respondents remain optimistic despite signs that growth is slowing in China, stalled in Brazil and India, and uncertain in other countries that could suffer if the United States reins in monetary stimulus, as expected.

The logistics industry’s optimism comes despite moves by the International Monetary Fund and the Organization for Economic Cooperation and Development to cut 2013-2014 global growth forecasts, citing concerns about emerging markets. Emerging markets currencies and financial markets came under pressure in 2013 amid worries of a possible ripple effect from tighter U.S. monetary policy.   

The survey of more than 800 industry executives is part of the fifth annual Agility Emerging Markets Logistics Index. The 2014 Index ranks 45 major emerging markets and identifies factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies. The Index and survey provide a basis to compare countries, weigh their progress and look at their near-term prospects.

The 45 countries featured in the 2014 Agility Emerging Markets Logistics Index were projected to grow at an average of 6.2% in 2013. The U.S. economy expanded 2.9%, while the European Union grew 1.4%, according to IMF projections.

“The industry’s confidence in emerging markets shows that logistics executives take a long view and see beyond today’s headlines,” said Essa Al-Saleh, President and CEO of Agility Global Integrated Logistics. “In the past, currency pressures, investor jitters, political instability or a pause in growth was a major setback that undermined confidence about other emerging markets. This time, the industry is staying focused on their enormous potential. < Korea Shipping Gazette >