Showing posts with label International trade of Nigeria. Show all posts
Showing posts with label International trade of Nigeria. Show all posts

Wednesday, February 9, 2022

Nigeria Logistics And Warehousing Market Is Predicted To Propel Owing To Growing Demand For E-Commerce Product: Ken Research

Logistics is energetic for the economic performance of any economy.  Nigeria has poor infrastructure and logistical problems along with delayed customs processes and congestion on the roads. It is an import-based country and the economy is reliant on the export of crude oil.  Nigeria was ranked 145 out of 190 economies during 2018 in comfort of doing business Index and ranks 112 in the Logistics Performance Index (2018). The growth in Nigeria logistics Market has been owing to the Infrastructural developments in Railways and Airways, advancement in foreign ties with other countries and the growing e commerce segment.

According to the report analysis, ‘Nigeria Logistics and Warehousing Market Outlook to 2023 – By Sea, Land, Pipeline, Air Freight Forwarding; International and Domestic Freight, Integrated and 3PL Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), By End Users, 3PL Warehousing, Type of Warehouses; By Courier Express and Parcel Logistics and E-commerce Logisticsstates that the competition within Nigeria Logistics and Warehousing Market is greatly fragmented in nature with the existence of national and international players such as DHL, FedEx, Redstar, UPS, GMT Logistics, MDS logistics, GIG, ABC transport, Bollore, Maersk Line, TSL and many more. The competition in the freight forwarding entities is more than warehousing owing to the existence of multiple players with diversified solutions at the competitive prices. The logistic cost in the market is tremendously high leading to contraction of manufacturing segment in the GDP.


The country is well-known for its oil and gas exploration and exports to other countries. The oil and gas companies’ whose essential business is not logistics, desire outsourcing the work to other logistics partners who have superior fleet size and admittance to all the resources and technology that will ease out their functions and short-term requirement for them. Companies dealing with unpreserved items and dangerous goods have complex transportation and warehousing requirements. Aggregator platforms such as kobo logistics are becoming extremely prominent that has linked the truckers with the companies to decrease the logistics cost and augment their freight.

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In addition, the boom of e-commerce and simplification of e-payment systems such as Paystack, PIN based debit cards in Nigeria have augmented the requirement of couriers and parcel market in the country. The growing prominence of online shopping will also underwrite towards a long-term growth for EDS (Express Delivery Segment) in future. The growth of e-commerce business has led to a convergence of B2B and B2C traffic, with parcel logistics providers progressively embracing both to serve the clients’ Omni channel supply chains.

The entire Logistics Market in Nigeria is projected to augment during the forecasted duration due to growing requirement for E Commerce Product, Augmenting International trade and Growth in Domestic Manufacturing. It is projected that there will be an augment in investment towards industrial parks in export encouraging zones with PPP framework. The augmenting middle-class population and growing retail stores and supermarkets will propel the requirement of warehousing in future. The logistics companies are projected to invest in advanced technologies solutions such as autonomous logistics, real-time tracking and automation in order to deliver an advanced customer service.

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Nigeria Logistics And Warehousing Market Analysis

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Competition Benchmarking of Top Logistics Players in Indonesia in Transportation, Warehousing, Cold Chain, 3PL, Express, E-Commerce, Automotive, Pharma and Retail Logistics

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Tuesday, January 28, 2020

Nigeria Freight Forwarding Industry Analysis: Ken Research

How Nigeria Freight Forwarding Market Evolved?
Logistics is vital for the economic performance of any economy.  Nigeria, like other African countries, has structural issues such as logistics infrastructure and cumbersome customs procedures at the seaports.
Freight forwarders specialize in arranging to ship merchandise on behalf of its shippers. They usually provide a full range of services such as tracking inland transportation, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance.
The Lagos Port Complex and Tin can Port in Lagos is the largest commercial ports in Nigeria. MMIA is the major commercial airport in Nigeria, situated in the capital city of Lagos. Therefore, Lagos is the commercial and trading hub of Nigeria.
Nigeria Freight forwarding industry was evaluated to grow from USD ~ million in 2013 to USD ~ million in the year 2018 at a compounded annual growth rate (CAGR) of ~% during the period. In 2016, Nigeria was hit by a very bad recession where it had a setback because oil prices fell down from ~ a barrel in 2014 to below ~ in 2016. This affected the country’s logistics sector and fall to a growth rate of almost ~% in 2016-2017 but finally came out of recession in 2018.
In 2018, Nigeria has achieved rank 145 in the Ease of Doing Business Index and rank 112 in the Logistic Performance Index.
Nigeria Freight Forwarding Market
The increasing middle class and urban-educated population have pushed the demand for shopping centers and e-commerce in Lagos and urban counties of Nigeria. This is increasing the demand for logistics from such platforms.
Nigeria Freight Forwarding Market Segmentation
By Mode of Freight
Sea Transport dominates the freight forwarding market as all the imports and exports are done by sea. Road transport is important for last-mile delivery in e-commerce and transporting goods to other neighboring African countries but suffered from the poor condition of roads. Air transport is not very popular in cargo transportation and used mostly for passengers. Rail Transport is expected to grow with the introduction of SGR in Nigeria.
By Type of Freight
International freight forwarding accounted for larger revenues share in overall Nigeria Freight Forwarding Market, accounting for a share of ~% in the year 2018.
By Flow Corridors
Over the past decade, Europe has replaced Asia as the major trading partner of Nigeria with a share in overall share of ~% in international freight. ~%. Asian countries such as China and India are major trading partners with Nigeria.
By End Users
The major end-users of freight forwarding services in Nigeria include the Food and Beverage, Industrial and Retail sectors with a share of ~% and ~% respectively. The F&B sector also creates a demand for cold transportation for perishable items. Increasing Nigerian local food products and shipping structures manufacturing in the country have triggered the demand for logistics and warehousing services.
By Contract and Integrated:
Third-Party Logistics in Nigeria has been thriving in the Nigeria Freight Forwarding Market with a share of ~% in overall market revenue.
Competitive Scenario in Nigeria Freight Forwarding Market
  • The Nigeria Freight Forwarding the market is highly scattered with over ~ freight local forwarding companies registered under the Council for Freight Forwarders in Nigeria. The market is scattered and constitutes of a number of multi-service logistics firms, specialized freight forwarders, and local transporters/truckers. While multi-service firms are mostly international, almost all transporters/truckers are local and regional.
  • The industry is at a growth stage in terms of parameters in terms of adoption of technology, efficient utilization, diversification of its service but the logistics cost charged is very high due to the dearth of proper infrastructure in the country. The cost of transporting 40 ft containers and 20 ft containers to warehouses has increased ~ % in the past few years.
Companies Cited in the Report:-
DHL
BHN Logistics
Bollore Logistics
ABC Transport
UPS (United Postal Services)
Redstar Logistics
Maersk Line
MSC (Mediterranean Shipping Company)
TSL Logistics
Nigeria Freight Forwarding Future Outlook and Projections
Nigeria's freight forwarding market is projected to grow at a CAGR of ~% during the forecast period 2018-2023 owing to the country’s plans to turn itself into the trading and manufacturing hub of Africa.
The revenue from the freight forwarding market in the country is anticipated to grow from USD ~ million in 2018 to USD ~ million by the year ending 2023.
The key growth drivers for the market include the rising demand for products through online purchases which has augmented the E-commerce market. The increasing international trade volumes and domestic manufacturing are expected to increase the demand for freight forwarding services.
The increasing year on year investment by the government of Nigeria on infrastructural and development projects such as the Trans African Highway, Lagos-Kano SGR, Lekki Deep Sea Port and improving the 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:-
Nigeria Freight Forwarding Market
By Mode of Freight
Road Freight
Rail Freight (Volume and Revenue)
Air Freight (Airfreight in Nigeria (Volume- Imports and Exports of Cargo and Mail By Airports)
Sea Freight (Volume By Import –Export And Cargo Type, Logistic cost, Container Freight Rates, CARGO duty, General Cargo Delivery Charges, And Ship Dues)
By Type of Freight
International Freight Revenue
Domestic Freight Revenue
By Flow Corridors
Asian Countries
European Countries
Middle East
America
African Countries
By Contract and Integrated
Contract Logistics Revenue
Integrated Logistics Revenue
By End-User
Food and Beverages
Industrial and Retail
Automotive
Others (Chemical products, fertilizers, pharmaceutical products, perfumes, etc)
Companies Covered:-
DHL
BHN Logistics
Bollore Logistics
ABC Transport
UPS (United Postal Services)
Redstar Logistics
Maersk Line
MSC (Mediterranean Shipping Company)
TSL Logistics
Key Target Audience
Freight Forwarding Companies
E-Commerce Logistics Companies
3PL Companies
Consultancy Companies
Express Delivery Logistics Companies
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2023
Key Topics Covered in the Report:-
Nigeria Transportation Major Companies
Inland Container Depot Niagara
Road Freight Industry Nigeria
E-Commerce Logistics Companies in Nigeria
Third-Party Logistics in Nigeria
International Freight Companies in Nigeria
Nigeria Freight Forwarders
Nigeria exports Revenue
Nigeria logistics and warehousing services
International trade of Nigeria
Nigeria ECOWAS Agreement
Nigeria Container Freight Rates
Cargo Shipping Cost to Nigeria
For More Information, Refer To Below Link:-
Related Reports by Ken Research:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Tuesday, September 3, 2019

Nigeria Freight Forwarding Market is Driven by Increasing Oil Exports, Infrastructural Investment, and Boost in Foreign Trade: Ken Research

“On the back of the new Standard Gauge Railway and improving foreign trade ties, the logistics sector in Nigeria experienced high growth in 2018.”
Analysts at Ken Research in their latest publication “Nigeria Freight Forwarding Market Outlook to 2023 – By Sea, Land, Air, Rail and Pipeline Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding” believe that the Freight Forwarding market has grown due to government spending on infrastructural projects, increasing volumes of imports and exports and geographical placement of Nigeria. The market is expected to grow at a CAGR of 15.4% during 2019-2023E.
Freight Forwarding Market Nigeria
Strategic Location: Nigeria is the world’s gateway to West Africa and Lagos is one of the most vibrant international trading hubs in Nigeria. Most of the sea transportation is done by two seaports in Lagos namely Lagos Port Complex and Tin can Port. A new Deep Sea Port in Lekki and Trans-African Highway is being constructed, which is expected to further open up Nigeria to international trade.  Also, Airport connectivity is great with major foreign countries with MMI Airport in Lagos as the busiest one involved in cargo transportation.
Focus on Manufacturing Sector: Nigeria is focusing on making the country self-dependent. Hence, Manufacturing and Agriculture related industries are increasing due to the benefits and issuance of single-digit interest rate loans to firms, thereby having a ripple effect on the logistics sector used to transport the goods manufactured.
Infrastructure Development: Improving infrastructure in the country happens to be a key growth driver for the logistics industry of the county. A combined of N200bn (USD 646.6 million) of investment in new port infrastructure in just 10 years has been made. Also, Abuja-Kaduna SGR has been completed to facilitate cargo and passenger movement. The willingness of international players to enter the market has made Nigeria step up their logistics infrastructure and spending.
Focus on International Trade: For an import oriented country like Nigeria, it is all the more crucial to participate in international initiatives towards trade relations. Nigeria has signed various trade agreements like ECOWAS, AGOA and AFCFTA. Therefore Nigeria has wide access to the entire African market as well as the Asian, European and North American markets for a number of goods.
Technological Advancement: While GPS and Control Towers are standard practices in logistics in developed countries, it is employed by only big domestic players and international companies in Nigeria. Supply chain visibility has become an increasing demand of clients and freight forwarders in Nigeria are also adopting new technologies such as ICT enabled vehicles, RFID Tags, Tracking solutions, among other such technologies.
Key Segments Covered:-
Nigeria Freight Forwarding Market
By Mode of Freight
Road Freight
Rail Freight (Volume and Revenue)
Air Freight (Airfreight in Nigeria (Volume- Imports and Exports of Cargo and Mail by Airports)
Sea Freight (Volume By Import –Export And Cargo Type, Logistic cost, Container Freight Rates, CARGO duty, General Cargo Delivery Charges, And Ship Dues)
By Type of Freight
International Freight Revenue
Domestic Freight Revenue
By Flow Corridors
Asian Countries
European Countries
Middle East
America
African Countries
By Contract and Integrated
Contract Logistics Revenue
Integrated Logistics Revenue
By End-User
Food and Beverages
Industrial and Retail
Automotive
Others (Chemical products, fertilizers, pharmaceutical products, perfumes etc)
Companies Covered:-
DHL
BHN Logistics
Bollore Logistics
ABC Transport
UPS (United Postal Services)
Redstar Logistics
Maersk Line
MSC (Mediterranean Shipping Company)
TSL Logistics
Key Target Audience
Freight Forwarding Companies
E-Commerce Logistics Companies
3PL Companies
Consultancy Companies
Express Delivery Logistics Companies
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2023
Keywords:-
For More Information, Refer To Below Link:-
Related Reports by Ken Research:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249