How Many Freight Forwarders Are There in Singapore
According to the Singapore Customs website, there are 3,251 registered freight forwarders in Singapore. This number constantly changes as new companies enter the market and existing companies merge or leave the business.
The Singapore Logistics Association (SLA) has over 600 members, many of whom are freight forwarders. The Singapore Air Cargo Agents Association (SAAA) also has over 200 members, most of which are freight forwarders.
These two associations represent a significant portion of the freight forwarding industry in Singapore.
Which is the Best Country for Freight Forwarding
Singapore is considered a top destination for freight forwarding due to its strategic location, extensive infrastructure, and efficient logistics processes. Here are some of the critical factors that contribute to Singapore’s position as a global freight forwarding hub:
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Strategic Location: Singapore’s strategic location at the crossroads of major trade routes between Asia, Europe, and the Middle East makes it an ideal hub for connecting global markets. The country’s proximity to essential production and consumption centres facilitates efficient transportation of goods across continents.
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Extensive Infrastructure: Singapore boasts an advanced infrastructure tailored for cargo handling and logistics operations. The Port of Singapore is one of the busiest and most efficient ports in the world, handling a significant portion of global trade. The country also has a well-developed network of roads, railways, and air transportation, ensuring smooth and efficient movement of goods.
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Efficient Logistics Processes: Singapore’s government has implemented policies and regulations to streamline customs clearance procedures, enhance the efficiency of transportation networks, and foster a business-friendly environment for logistics companies. These efforts have resulted in a robust logistics ecosystem that facilitates timely and cost-effective cargo movement.
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Diverse Talent Pool: Singapore has a highly skilled and multilingual workforce, with many logistics and supply chain management professionals. This qualified talent pool is essential for supporting the needs of freight forwarders and logistics companies operating in the country.
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Technology Adoption: Singapore has embraced technology to enhance its logistics operations. The country has implemented digital solutions for tracking shipments, managing customs clearance, and streamlining data exchange, making it a technologically advanced logistics hub.
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Supportive Government Policies: The Singaporean government actively supports the growth of the logistics sector. It provides incentives for investment in logistics infrastructure, facilitates collaboration between logistics companies, and promotes innovation in logistics solutions.
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International Partnerships: Singapore actively engages in international partnerships to promote its position as a global freight forwarding hub. The country is a member of various international trade organizations and initiatives, fostering cooperation with logistics partners worldwide.
Singapore’s strategic location, extensive infrastructure, efficient logistics processes, diverse talent pool, technological adoption, supportive government policies, and international partnerships make it an attractive destination for freight forwarding companies seeking to operate efficiently and achieve global reach.
How Big is the Logistics Industry in Singapore
The logistics industry significantly contributes to the Singaporean economy, generating substantial revenue and employment opportunities. According to recent estimates, the logistics industry in Singapore contributes approximately 6.4% to the country’s GDP and employs over 210,000 people. The industry is expected to continue growing in the coming years, driven by increasing global trade, e-commerce growth, and the adoption of new technologies.
Here’s a breakdown of the size of the logistics industry in Singapore based on various metrics:
Revenue: The logistics industry in Singapore generated an estimated S$49.6 billion in revenue in 2022. This represents a significant portion of the country’s overall economic output.
Value-added: The value-added of the logistics industry in Singapore was estimated at S$16.5 billion in 2022. This represents the direct contribution of the sector to the country’s GDP.
Employment: The logistics industry in Singapore employed an estimated 212,100 people in 2022. This makes it one of the largest employers in the country.
Growth Projections: The logistics industry in Singapore is expected to grow at an annual rate of 2.5% from 2023 to 2027. This growth will be driven by increasing global trade, e-commerce growth, and the adoption of new technologies.
Singapore’s position as a global trade and logistics hub is expected to continue to drive growth in the industry. The country’s strategic location, well-developed infrastructure, and efficient regulatory environment make it an attractive destination for logistics companies. Additionally, the government’s focus on innovation and technology adoption is expected further to enhance the competitiveness of the Singaporean logistics sector.
