Australian Logistics & 3PL Warehousing Market Predictions For 2021


Ken Research, a global aggregator and publisher of market intelligence, equity, and economy reports, has made a comprehensive analysis of the logistics and warehousing services market in Australia for the year 2021. According to Ken Research, by 2021, Australia’s logistics and warehousing industries will see a boom worth $187 billion.

Logistics and 3PL Warehousing Market

Ken Research accredited the success and growth of Australia’s logistics and warehousing to a well-integrated supply chain supported by leading technology and infrastructure. The industry has come a long way with the inception of global players and the surpassing use of the internet. Australian logistics have brilliantly deployed internet resources to make attractive and efficient web and mobile applications to support their customer service and operations over the recent years. They also mentioned the expanding manufacturing and retail sector, increasing disposable income, the growing number of foreign companies and the increasing value of exports and imports as other factors that encouraged the growth of the logistics industry in Australia.

They put forth the government projects attributing to the infrastructure development such as the Roads to Recovery, National Rail program, Brisbane Port Upgradation, Port of Newcastle development, and Darwin Port expansion, with an allocation of $70 billion from 2014 to 2020. These infrastructure development programs, in turn, have tremendously improved the development of road, rail, air and water transport facilities, making the freight movement effortless and smooth. And the logistics industry will continue to see sustainable growth in the upcoming years as the government has further invested $75 billion for funding road and rail infrastructure from 2018 to 2027.

Freight Forwarding Market

As of 2021, according to the Australian Government’s Department of Infrastructure, Transport, Regional Development and Communications, the freight and logistics industry has accounted for approximately 8.6 per cent of the country’s GDP. And as per the reports from Ken Research, the freight forwarding industry will continue to grow and account for the highest revenue share in the Australian logistics industry. The company has said that “the freight forwarding segment is driven by changing consumer preference, rise in e-commerce, and growing trade activities”. The company also seemingly applauded the evolution in the logistics industry by adding, “the logistics industry has evolved over the years in terms of integration and digitalisation of the supply chain which has led to better productivity and efficiency creating sustainable modes of transporting goods from one place to another”.

Third-Party Logistics (3PL Warehousing) Market

As global players enter the Australian market, the sustainable growth of the freight forwarding industry is widely supported by emerging 3PL service providers. According to the report, with the development of artificial intelligence and the growth of the e-commerce sector, the demand for 3PL warehousing is expected to develop with the Auto and Ancillary and Chemical and Pharmaceutical sectors, the largest demand drivers of warehousing space.

They also have predicted that large companies will be focusing on value-added services to gain a competitive advantage over other players in the market. The report has attributed the success of 3PL to aspects such as power shifting to the consumer, internet driving growth, transformation of the supply chain, new technology and home delivery.

With an increased cold storage capacity in recent years, cold storage is widely used for the transportation of meat, seafood, fruits, vegetables, bakery, and pharmaceutical products. According to Ken Research, the demand for cold chain logistics has grown with the rising demand for Australian agricultural products from other countries leading to increasing agricultural exports.

With experience and expertise in supply chain management, C2C Logistics is committed to offering a tailored and expert solution to all your trade and 3PL warehousing requirements. Contact our team based in Illawarra today for more information on local and international trade.