Courier & logistics players expect mild growth in 2015, amid continuing challenges

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KUALA LUMPUR(Dec 26): Courier and logistics services players expect a mild growth in 2015 amidst the increasing popularity of e-commerce, and despite challenges seen in the new year.

GD Express Carrier Bhd (GDEx) managing director Teong Teck Lean said the growth of electronic commerce (e-commerce) in the country would spur the growth for the courier industry.

“As more organisations adopt the e-commerce model, it further enhances the demand for courier and logistics services,” he told theedgemarkets.com.

He expects the sector to register sales growth of 1% to 2% in 2015, with catalysts such as cheaper fuel prices spurring growth in the industry.

DHL Express (Malaysia) Sdn Bhd, part of global postal and logistics group Deutsche Post DHL,also  expects 2015 to be a year of progressive growth for the company with its newly increased flight frequency and capacity from Malaysia.

DHL Express Malaysia & Brunei managing director Christopher Ong acknowledges that the coming year may see an extension of the same challenges apparent in 2014, which saw the global economy pulling the stops to ensure market recovery from the economic slowdown which began in 2008.

“The coming year may face the same challenges as analysts foresee advanced economies may have difficulties in accelerating their growth.. this slowdown in growth will also affect key emerging markets such as China, Russia and Brazil.,“ he said in a statement today.

Nonetheless, Ong said Malaysia has proven to strive amidst adversity and still remains one of the most competitive economies among developing Asian economies.

“Based on data from the Malaysia External Trade Development Corporation, Malaysia’s trade with China recorded a 7.7% increase in the first half of 2014, and according to the World Bank’s latest Logistics Performance Index 2014, Malaysia is ranked 25th amongst 160 countries, placing us at the very top of the upper middle-income countries, signifying our favourable position for manufacturing and trade prospects” he said.

Despite market uncertainties, DHL will continue its commitment to Malaysia through further investments and expansion to enhance the country’s logistical capabilities to major trade lanes.

DHL Express launched its 4000 sq metres Penang gateway, the country’s largest international express gateway, while increasing its intra-Asia flight frequency from Penang to six days from five days per week.

“This results in an increase of 20% capacity and improved transit time for customers to and from China, Japan, Singapore, Taiwan, Hong Kong, South Korea, Vietnam, Europe and US.

"…operating via the A300-600 freighter, the additional flights will enable customers from Penang to enjoy Saturday delivery services to and from Tokyo, Osaka, Seoul, Hong Kong, Taipei, Singapore, and Bangkok,” said Ong.