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Local logistics market expected to fare better next year

2013/11/27 11:00

By Nam Kwang-sik

SEOUL, Nov. 27 (Yonhap) -- The South Korean logistics market is forecast to take a turn for the better next year compared with this year on expectations of a recovery in domestic demand and the global economy, a poll showed Wednesday.

According to the survey of 102 local logistics market watchers by the Korea Chamber of Commerce and Industry (KCCI), 44.1 percent of the respondents predicted that the logistics market will grow more next year than this year, while 45.1 percent said the market growth of next year will stay at the level of this year.

Only 10.8 percent said that the market is expected to shrink next year.

"The logistics market is predicted to grow slightly next year, with home-delivery services and 3PL businesses leading the market," the KCCI said.

The KCCI attributed its bright expectations to a recent, slight improvement in economic indicators of advanced countries and the 3 percent growth prediction for the domestic retail market.

The 3PL businesses are third-party logistics that allow manufacturers to outsource parts of their supply chain management.

South Korea's retail market is predicted to grow 3 percent in 2014 from this year amid the slow growth in the local market in recent years, the KCCI said in a separate poll of 70 retail experts it released early this month.

Most respondents cited the economic conditions in advanced countries, including the United States, as the main reason to have an impact on the local logistics market next year.

Meanwhile, local shipping companies are expected to face dull business conditions next year as a slow recovery from a prolonged economic downturn is expected for the global economy, the KCCI said.