drive trade growth in 2021, the ASEAN road freight market is expected to witness a CAGR of greater than 8% during the forecasted period of 2020-2025. The rise in e-commerce consumer spending and B2B e-commerce, which is predicted to see a 70% increase by 2027, is also pushing demand for door-to-door logistics solutions.
“Road freight is now playing a more significant role in international long-haul solutions across Asia as it offers a cost effective and sustainable option. As we have seen in the last year with volatile air and ocean freight rates during the Covid-19 pandemic, road or multimodal solutions have offered more stable pricing, capacity, and easier border access in Southeast Asia,” said Thomas Tieber, CEO, DHL Global Forwarding Southeast Asia.
Road freight is significantly cheaper and generates less emissions than air freight, while offering increased security and faster lead times than ocean freight. Road solutions are also highly flexible with trucks able to manage door-to-door local, cross-border, long-haul and short-haul deliveries.
Increasingly, customers are choosing to truck their short- and long-haul shipments for part of, or the entire journey due to the reduced carbon emissions it offers as compared to airfreight. An air-road shipment from Jakarta to Bangkok via Singapore cuts carbon emissions by half, in addition to cost savings of 35%, as compared to a direct flight, while trucking a shipment from Singapore to China reduces carbon footprint by 83% as compared to airfreight.
