Prime Mover Magazine

Australian e-commerce projected to increase by 50 per cent in growing logistics sector

Urban freight looms as significantly to future industry growth as long haul freight, the traditional bread and butter of Australia's vibrant supply chain according to a new report.

Growing urbanisation promoted by a steep rises in population growth would, however, continue to provide challenges for the logistics sector Orbis Research has found.

The scale of projected growth along some urban freight corridors is such that it is anticipated that a greater necessity to operate freight networks much more intensively in off-peak periods would arise leading to resistance from affected communities.

Operators as a result would need to strike a balance between meeting community expectations and customer demand.

As investments in logistics infrastructure increased, the freight and logistics market was forecast to grow at a rate of 2.5 percent between 2019 to 2024.

The value of Australian e-commerce sales is anticipated to grow by a further 50 per cent next year on the back of increasing volumes of international cross-border trade.

The Australia Infrastructure Audit found capital cities were projected to contribute $1,621 billion by 2031 up from $854 billion in 2011.

Ecommerce was also fuelling this growth and sales of light commercial vehicles had continued to reflect this trend.

Between 2006 and 2014 light commercial vehicles grew by 35 per cent, at almost twice the rate of passenger vehicles (19.1 per cent) and rigid trucks (20.78 per cent) Orbis Research found.

In 2018 the LCV segment increased at a rate of more than two per cent to represent nearly 20.6 per cent of the overall passenger vehicle market.

E-commerce now holds a 1.80 per cent share of Australia's GDP.

Woolworths, as it competes with Amazon, has shifted its model to a platform divesting itself of 30 Big W stores with the closures of Masters and Dick Smith still fresh in the memory.

With as many as 33 per cent of Australian e-shoppers continuing to purchase products from abroad due to availability and cost savings, the consumer economy was not showing any signs of slowing.

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