The report titled “Africa Freight Forwarding
Market Outlook to 2023 - By Countries (South Africa, Kenya, Tanzania, Uganda,
Nigeria, Namibia, and Botswana), Mode of Freight (Road, Rail, Air, Sea, and
Pipeline), By End Users (Food and Beverages, FMCG, Industrial and others)
and by Contract Logistics and Integrated Logistics” provides a
comprehensive analysis of the freight forwarding market in Africa. The report
especially focuses on the freight forwarding market of seven African countries
namely Botswana, Namibia, Nigeria, Kenya, Uganda, Tanzania and South Africa
with a detailed country profile of each.
Africa
Freight Forwarding Market
Contract logistics is known as the
driving force for the freight forwarding market and is
opted frequently. The market has experienced a growth in its study period
resulting in a single-digit CAGR. Food and beverages have been the market’s
driving force as most of the consumer spending is towards
the same. Future trends in the market focus on Africa having less trade with
developed nations and more with developing nations.
Segments
of Freight Forwarding Market
By Mode
of Freight (Road, Rail, Sea, Air and Pipeline)
Road freight is the dominant mode of
freight movement as most of the countries in Africa are
landlocked and last-mile deliveries preferred by road. The ports of Africa
play an important role in bringing in cargo to the landlocked countries making
sea freight second in line after road freight. Intra-regional trade needs
funding and improvement with the help of which the overall freight forwarding
market would also grow. The state of railways varies from region to region. The
significant rail networks are those centered to South Africa and stretching
north to Malawi, DR Congo and Tanzania.
By End Users (Food and
Beverages, FMCG, Industrial and Others)
The major end-users of freight
forwarding services in Africa include the Food and Beverage, FMCG and
Industrial sectors. The F&B sector has been in demand due to the slow
consumer spending behavior of people in Africa which has also spurred South
Africa’s retailers to expand into the sub-Saharan region. With new
developments, the industrial sector is also experiencing a lot of potential and
it has been estimated that Business-to-business spending in
manufacturing in Africa is projected to reach USD 666.3 billion by
2030.
By
Contract and Integrated
The Africa freight forwarding
market is dominated by contact logistics. The market is
dominated by few international players in each country. Without 3PL,
the supply chain would be non-existent in Africa. In urban areas, the
traditional model of utilizing delivery trucks and
contracting 3PL for supplying large retailers is used. In areas
that are hard to reach, small-scale 3PLs are used to
deliver products to small- scale retailers. Due to infrastructural challenges,
big market players prefer to outsource services to local transporters and focus
on their core competencies. Companies do not wish to employ their own
logistics arm since it involves capital investment and a lot of hassle.
Competitive
Scenario
The African freight
forwarding market is highly dominated by international players. The road
freight market is slightly fragmented in a few countries. The industry is at a
growth stage in terms of parameters such as technology, efficiency and service
portfolio but not pricing as the logistic cost is too high leading to
contraction of manufacturing sector in the GDP. There is also a shakeout
happening of smaller firms that are unable to sustain in the competitive
environment and a number of mergers and acquisitions are taking place in an effort
to increase market shares.
South
Africa
The FMCG, Retail and Automotive
industries in the country played a significant role, especially for the
domestic market, in the growth of freight forwarding market in South Africa.
Road freight was observed to be the most preferred mode of
transportation due to the development in the road infrastructure and relatively
cheaper prices as compared to the other modes of transportation; followed by
rail and sea freight. Asia flow corridor was observed as
the largest contributor in terms of revenue in South Africa freight forwarding
market.
Kenya
Kenya has achieved rank
61 in the Ease of Doing Business Index and rank 68 in the Logistics Performance
Index. The freight forwarding market has accounted for a double
digit growth between 2013 and 2018. Road Transport dominates the freight
forwarding market due to the monopolistic demand of road transport for delivery
in remote regions, to the landlocked neighboring countries, and for the last
mile delivery. The increase in share of Domestic Freight is due to government
emphasis on manufacturing, such as the Big Four plan under Vision 2030. The
third-party logistics has been dominating the freight forwarding
market.
Tanzania
The market of Tanzania
has experienced the maximum growth owing to a double-digit CAGR
between 2013 and 2018. The country acts as a gateway towards other East and
Central African countries, road logistics services are of the highest needs
followed by railway and marine. The market is highly concentrated with
international players that dominate the international freight segment. The new
local companies entering the market haven’t been able to adopt the new
technologies and resort to third party logistics.
Uganda
being a landlocked
country, multimodal transportation has gained importance in the country. Food
and Beverages is the driving force for logistics. The Gulu town in
Northern Uganda is to get a new USD 8.8 million trade logistics hub with money
provided by the EU. The market has experienced a single-digit growth between
2013/14 and 2017/18. The
railways have been given importance in order to bring down pressure
on roadways, which currently contribute the most to the overall
freight forwarding market. As most of its cargo comes in from countries that
have ports, international freight dominates the market.
Nigeria
the Nigerian freight
forwarding market has experiences a double digit CAGR from 2013 and
2018. Sea Transport dominates the freight forwarding market. Lagos Port Complex
and Tincan Port Complex are two major seaports in Lagos.
International Freight is dominant as Nigeria is import oriented country and
export oil and petroleum products. Increasing Nigerian local food products in
the country has triggered the demand for logistics and warehousing making food
and beverages the leading end-user for freight forwarding. Due to
infrastructural challenges, big market players prefer to outsource services to
local transporters and focus on their core competencies
Namibia
The freight forwarding
market of Namibia has experienced low single digit growth between 2013 and
2018. Namibia is considered to have one of the best road networks in
Africa which also helps the road freight to dominate over the market. The country
has offered dry port facilities to Zambia, Botswana, Zimbabwe and others to
help the landlocked countries grow and making its international freight more
prevalent. Contract logistics has been dominating the market.
Botswana
Botswana being a
landlocked country is highly dependent on the road for the transportation
of their goods which also has the highest revenue percentage towards the
overall freight forwarding market. The market is dominated by
international players and has experienced a single-digit CAGR during 2013-2018.
Being a landlocked country and having a large proportion of its cargo coming by
sea, multi-modal transportation logistics players in the market prefer to
outsource their services to players who are able to provide these
services efficiently and at a low cost.
Future
Outlook and Projections
The market is expected to
grow at a positive single digit CAGR and the key growth drivers would include
rising demand intra-regional trade with the development of projects
like AfCFTA. The increasing international trade volumes and domestic
manufacturing are expected to increase the demand of freight
forwarding services. The increasing year on year investment by the government
of each state on infrastructural projects such as SGR for railways,
and improving the state of road, sea and air transport network is
also witnessed to positively impact the market. Due to such reasons,
new firms continue to enter the market despite any tariff or trade barriers.
Key Segments Covered:-
By Mode of Service ((Road Freight, Rail
Freight, and Air Freight, Revenue and Freight Volume, Cost, Major Flow
Corridors)
By Contract and Integrated Logistics
By End Users (Food, Beverages and Consumer
Retail, Automotive and Healthcare and Others)
Companies Covered
Africa
Bollore Africa Logistics
Kuehne Nagel
DHL
Maersk
DSV Panalpine
CEVA Logistics
DB Schenker
South Africa
Imperial Logistics
Onelogix
Santavo Limited
DB Schenker
ID Logistics
DSV-Global Transport and Logistics
Kenya
DHL
Kuehne Nagel
Panalpina
CEVA Logistics
DB Schenker
Maersk Line
Agility Logistics
FedEx
Tanzania (Competitive Landscape)
Alistair
MeTL
Maersk Line
CMA CGM
Uganda
Bollore Transport and Logistics
Spedag Interfreight
Maersk Uganda Limited
Kenfreight Uganda Limited
CMA CGM Uganda
Union Logistics Uganda Limited
Nigeria
DHL
BHN Logistics
Bollore Africa Logistics
ABC Transport
United Postal Services
Red Star
Maersk
Mediterranean Shipping Company (MSC)
TSL Logistics
Namibia (Competitive Landscape)
A Van der Walk
TransNamib
DB Schenker
Pacific International Lines
Pronto Air and Ocean Freight
Woker Freight Service
Botswana (Competitive Landscape)
Transport Holding
Bollore
Seabelo Carriers
Country Profiles
South Africa
Kenya
Tanzania
Uganda
Nigeria
Namibia
Botswana
Key Target Audience
Freight Forwarding Companies
Freight Forwarding Consultancy Companies
Contact Logistics Companies
Venture Capitalists, PE
Freight Tech Companies
Consulting Companies
Investment Banks
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019 -2023
Key Topics Covered in the Report:-
Logistics Infrastructure in Africa
Africa Freight Forwarding Market Overview
Africa Freight Forwarding Market Size
Country Profiles (Botswana, Namibia, Tanzania,
Uganda, Kenya, Nigeria and South Africa)
Competitive Scenario in Africa Freight
Forwarding Market
Company Profiles of Major Players in Africa
Freight Forwarding Market
Africa Freight Forwarding Market Future
Outlook and Projections
Africa Freight Forwarding Future Market Size
Africa Freight Forwarding Market Future
Segmentation
Analyst Recommendation
For More Information, Refer
To Below Link:-
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Ken Research:-
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