• Singapore’s Logistics Hub

Singapore’s logistics hub is renowned worldwide for its excellent connectivity and world-class logistics processes and infrastructure. Its container transshipment port is the largest globally with a container transshipment share of about one-seventh of the total world container transshipment. It connects around 600 ports in 123 countries around the globe, and there are over 6,000 flights to 330 cities weekly. The Singaporean logistics sector is a very crucial contributor to the Gross Domestic Product of the country as it provides employment and job opportunity. It also contributes to the country’s revenue. Singapore’s logistics sector makes use of the latest technologies for both its underwater, ground, and aerial aviation processes. An example of these technologies is the use of drones.

Three areas of Singapore’s logistic sector

The logistics sector connects consumers to traders, traders to suppliers, and suppliers to manufactures. The following are its major areas:

  1. Freight forwarding
  2. Contract logistics
  3. Transportation and storage

Factors which have made Singapore logistics sector maintain its logistics hub status

The strategic geographical location as a connection point between the Indian and the Pacific Ocean enables Singapore to access and be accessed by the major shipping lanes.

  • ICT integrated logistics. To continue soaring high, Singapore aspires to use driverless automated vehicles and technology to deal with traffic congestion.
  • The presence of global firms brings about a blended innovative ecosystem.
  • World-class logistics infrastructure enables a reduction in the cost of delivery and at the same time enabling reliable delivery.
  • Robust network, efficiency, and reliability in its logistics services.
  • Continuous trade amid COVID-19.
  • Specialization/selective operation.

It deals with time-sensitive products, high-value products/sectors such as information communication & technology, bio-pharmacy

  • Integration of information technology and Secure management of cargo

Singapore has integrated technology in its 24/7 operational cycle making processes fast and timely.

  • World-class processes and infrastructure. Singapore is the largest integrated facility worldwide in terms of processing quantity.
  • Double airport capacity both for the perishables and the time-sensitive freight. Time-sensitive operations include medical & rescue operations.
  • Progressive training of cargo crew to keep up with the new processes.

Secrets that enable Singapore’s continual maintenance of its Logistic Hub Status

Inspiring private sector participation

The government includes the private sector in its policymaking and recognizes these sectors as corporate entities. It also creates a conducive environment for healthy competition among the private sectors. The presence of a conducive ecosystem has resulted in the continual high standard aspiration that in turn soars the logistic sector higher. The government helps to build a conducive environment for necessary complementary infrastructure investment. An example of such complementary investment is when a private cargo company invests in express cargo services.

Singapore-based companies support crucial industries which immensely to the logistics sector. Examples of such crucial industries are healthcare, retail, construction, food, oil & gas, and electronics.

Access to the right data

The government has built areas to enhance efficiency and connectivity. Such areas are the Banyan LogisPark, Airport logistics park of Singapore, and Changi International LogisPark. Access to the right data is important to manufacture in improving patient care and healthcare as a whole. This access to the right data is also crucial to the supply chain which uses it to determine shortages in the supply chain, hence facilitating efficient decision making.

Proactive Connectivity Building

Singapore puts in place proactive policies to ensure it gains connectivity to as many ports as possible across the globe. This enables it to have a large global market presence despite its small local market which in turn contributes to the maintenance of its logistics hub status. These connections are in the sectors such as aviation and maritime networks at the port. Singapore’s logistics sector is a technology-based, 24/7 operations service provider.

Innovative Processes and infrastructure

Singapore has and continues to establish high standard integrated processing mechanisms enabling it to process about 65 million shipping containers.

The Competitors of Singapore as a Logistics Hub

Singapore may be soaring this high as a logistics hub, but it still has competitors to watch out for. In the business sector, the investors usually look at other service providers who are considered competitors to their target, to compare the cost and benefits. These competitors might be offering slightly less costly services to which the investors may opt for. Therefore, Singapore must continue to watch its back and improve upwards. These potential challengers are:


Thailand is strategically located as a connection between China and India. Its continued emergence as a Multinational Corporation’s global logistic hub is a potential threat to Singapore’s continued maintenance of its logistics hub status. The government of Thailand is establishing a one-top center for export services to make documentation and consultation regarding exportation, remotely available through e-logistics. The government is also investing in railroad improvement which will Thailand a gateway to regions of AEC. At least 30 provinces in Thailand have their boundaries connected to other regions like Malaysia, Cambodia, and

Laos. Most of Thailand’s Gross Domestic Product comes from the exports sector. It is the leading electronic equipment and components supplier in the ASEAN region.


New entrants into the logistics sector find Malaysia as an attractive starting point. Of all Malaysia’s ASEAN counterparts, Malaysia has a well-developed transportation infrastructure consisting of five container terminals, five major ports, and high standard highways. Also, its strategic location and connection to Thailand which is also an emerging logistics hub strategically it in a position to have Thailand’s benefits trickle down to it. Hence Malaysia is a potential future challenger to the current Singapore logistics hub status.


The Philippines is emerging as a competitor to Singapore due to its implementation of 3PLs, e-commerce services, and express deliveries. Another contributor to this is that the local populace is increasingly embracing timely deliveries hence the growth of the express delivery sector.


Improved infrastructure investment, increased exportation of manufactured goods, regional trade integration, and increased domestic consumptions are some of the major contributors to the growth of Indonesia as a logistics hub. These along with the government’s plans to construct new roads, airports, and seaports make Indonesia a potential challenger to Singapore’s current logistics hub status. However, it is still a way far because of its underdeveloped limited infrastructure.


The agricultural and manufacturing sector of Vietnam are a major contributor to the logistics sector thus continual increase in these key areas is a catalyst for the robust growth of the logistic sector as these products will be passing via the Vietnamese port. There are also plans to make the port infrastructure more efficient. These developments make Vietnam a potential challenge to Singapore’s current logistics hub status.

How to manage the logistics and supply chain sectors?

There are several firms both local and global which manage their operations in Singapore providing specialized capabilities and innovative ways of cargo processing. Because of this, the Singaporean logistics ecosystem gets stronger and better each moment. Singapore’s custom is reliable and fast. It takes around 8 minutes to clear Physical cargo and about 10 minutes to get an electronics permit. There are several strategies to manage the supply chain, and some are discussed below:

Data access

Crucial data should be readily available to the strategic decision-makers in the supply network. The more partners who have access to the supply data, the greater the visibility and transparency, hence better production control. When there is transparency, there is greater cooperation which in turn is beneficial to the supply chain hence a vibrant logistics sector.

Forecasting your data accurately

Correct data forecasting is a constant demand projecting process while taking time, transportation, and inventory cost into consideration. It helps in efficient and effective delivery and at the same time curbing supply shortages.


As an investor in the logistics sector, you should be on the lookout for emerging logistics hub as new markets usually pose high risks and complexities. Other complexities that may be faced while dealing with these upcoming logistics hubs are under-developed technology, liquidity risks, and political risks. One should also consider the environmental and climatic conditions as some areas are prone to typhoons and tsunamis. Singapore however has developed over the years to overcome these complexities thus it continues to maintain its logistics hub status as the world’s best logistic hub.

Who is Challenging Singapore’s Logistics Hub? FAQs

Which are some of the logistics firms in Singapore with regional or global headquarters in Singapore2021-02-08T11:08:04+08:00

There are around 25 global logistics firms that conduct operations in Singapore. The major ones are:

  • UPS
  • DHL
  • DB Schenker
How can Singapore continue soaring high?2021-02-08T11:07:15+08:00
  • Singapore will continue embracing new digitization mechanisms hence serving better and faster and at the same time creating more jobs.
  • It will also continue upholding its five trade agreements and providing competitive prices to the investors in the logistics firms. The logistic firms usually grab this opportunity to access the global markets.
  • It will also continue to create a conducive environment that enables crucial logistic utilizers to continue investing and expanding their operations.
What is the government’s contribution to the logistics Sectors?2021-02-08T11:06:43+08:00

It develops appropriate incentives that enable those in the private sector to invest and continue their operation in the logistics sector.

What contributions does the Networked Trade Platform make to Singapore’s Logistics sector?2021-02-08T11:01:11+08:00

The Network Trade platform enables sharing and re-use of trade documents and data among the business partners. This data & document sharing increases productivity by ensuring transparency & data accuracy.

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