Industry looks to shield itself from trade wars, inflation,
possible recession
DUBAI, UAE, Feb. 18,
2025 /PRNewswire/ -- More than 62% of logistics
industry professionals say they've overhauled their supply chains
to safeguard against inflation, looming trade tariffs, the
possibility of a global economic downturn and other major
risks.
Entering 2025, the logistics industry is looking to protect
itself from rising costs and a potential trade war ignited by
expected U.S. tariff hikes and a flood of exports from China, according to a survey of 567 executives
for the 2025 Agility Emerging Markets Logistics Index.
Nearly 55% of respondents see a global recession as likely or
certain. Almost 82% say tariffs and other trade protectionism are
having a significant impact on their supply chains. Seventy-two
percent say risks in emerging markets have increased over the past
year.
"There is wariness and uncertainty among shippers, carriers,
forwarders and others when it comes to the geopolitical factors
that drive up costs, affect trade volumes, and alter supply
chains," says Agility Vice Chairman Tarek Sultan. "Companies doing business
internationally continue to shift production as they re-evaluate
investment plans and search for durable paths to growth."
The survey and Index are Agility's 16th annual
snapshot of industry sentiment and ranking of the world's 50
leading emerging markets. The Index ranks countries for overall
competitiveness based on domestic and international logistics
strengths, business climates and digital readiness -- factors that
make them attractive to logistics providers, freight forwarders,
air and ocean carriers, distributors and investors.
The 2025 Index features an in-depth analysis of the Arabian Gulf
economies. Individually and as a group, the six Gulf countries are
positioning themselves as global trade hubs, investing heavily in
infrastructure, AI, energy transition, and workforce development.
Despite increasing risk to global supply chains, the United Arab Emirates, Saudi Arabia and other Gulf countries have
become "beacons of stability" and resilience, the Index
concludes.
Stability at the top of the 50-country rankings was accompanied
by volatility and movement further down in the Index. China, India,
UAE, Saudi Arabia, Malaysia, Indonesia, Mexico, Qatar, Thailand and Vietnam rank 1 through 10. Colombia (No. 21) leaped up the rankings;
Nigeria (43), Bangladesh (39) and Ukraine (40) tumbled.
The six Gulf countries all are among the top 11 for business
conditions: UAE again tops the rankings for best business climate;
Saudi Arabia is 3rd;
Qatar 5th. The
countries most digitally ready are China, UAE, Malaysia, Qatar and Saudi
Arabia.
In international logistics opportunities, China, India,
Mexico, Indonesia and Saudi
Arabia rank highest. In domestic logistics, the leaders are
China, India, Indonesia, Saudi
Arabia and UAE.
2025 Index Highlights
SURVEY
- China – 54% intend
to move production or sourcing out of China in the next five years with
U.S.-China trade friction, labor
costs and increasing domestic regulation being the biggest
factors.
- Africa – Despite
seeing heightened risks in emerging markets, 35% plan to boost
investment in Africa in 2025 vs.
only 8% planning to cut back there.
- Net-Zero – Nearly 65% say their companies are on
track to meet net-zero goals.
COUNTRY RANKINGS
- In the Middle East
and North Africa, overall
rankings are: UAE (3); Saudi
Arabia (4); Qatar (8);
Turkey (11); Oman (14); Bahrain (16); Jordan (17); Kuwait (18); Egypt (24); Morocco (26); Iran (32); Tunisia (36); Algeria (38); Lebanon (42); Libya (46).
- Rankings in Sub-Saharan Africa: South Africa (20); Kenya (22); Ghana (31); Tanzania (37); Uganda (41); Nigeria (43); Ethiopia (45); Angola (47); Mozambique (48).
- Rankings in Asia:
China (1); India (2); Malaysia (5); Indonesia (6); Thailand (9); Vietnam (10); Philippines (23); Kazakhstan (25); Sri
Lanka (27); Cambodia (30);
Pakistan (33); Bangladesh (39); Myanmar (49).
- Rankings for Latin
America: Mexico (7);
Chile (11); Brazil (13); Uruguay (19); Colombia (21); Peru (28); Argentina (29); Ecuador (34); Paraguay (35); Bolivia (44); Venezuela (50).
- In Europe:
Ukraine (40).
Transport Intelligence (Ti), a leading analysis and
research firm for the logistics industry, has compiled the Index
since it was launched in 2009.
John Manners-Bell, Chief
Executive of Ti, said: "The supply chain industry is entering a new
era in which the ability to respond to macro-economic and
geopolitical events will be critical. The looming prospect of
tariffs and trade wars will force shippers to re-evaluate the
resilience of their production, off-shoring and sourcing strategies
and it will be imperative for logistics providers to respond
appropriately in a timely and effective manner."
2025 Agility Emerging Markets Logistics Index:
agility.com/2025index
About Agility
Agility is a global leader in supply chain services,
infrastructure, and innovation with 60,000+ employees across
six continents. A multi-business operator and investor,
Agility specializes in growing and scaling operating
businesses. Agility's companies include the world's largest
aviation services company (Menzies Aviation); a global fuel
logistics business (Tristar); a leading logistics parks developer
and operator across the Middle
East, South Asia, and
Africa (Agility Logistics Parks);
and a commercial real-estate company developing a mega-mall in the
UAE (UPAC). Other Agility companies offer customs digitization
services, remote-site infrastructure services, defense and
government services, and ecommerce-enablement and digital
logistics. Agility invests in supply chain innovation,
sustainability, and resilience, and has minority holdings in a
growing portfolio of listed and non-listed companies.
For more information about Agility, visit:
Website: www.agility.com
Twitter: twitter.com/agility
LinkedIn:
linkedin.com/company/agility
YouTube:
youtube.com/user/agilitycorp
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