“With the addition of LF Logistics, Maersk gains capabilities to serve Asia’s important and fast-growing consumer markets. Furthermore, LF Logistics’ expertise in omnichannel fulfillment positions us well in the global e-commerce market.”, Mr. Ditlev Blicher, Managing Director at Maersk Asia Pacific highlighted the merger of Maersk and Hong Kong-based LF Logistics during his visit to Vietnam.
As Asia-Pacific cements its position in the global supply chain and with integral manufacturing industries centered in the region, Maersk sees the potential of deepening its presence in the Asia-Pacific. Data from McKinsey & Company show that 50% of global consumption growth over the next decade is forecast to occur in the broader Asia-Pacific region, driven by thriving e-commerce and cross-border commerce sectors.
The merger of Maersk and LF Logistics came at a crucial time for the entire logistics sector. The impact of the pandemic and global inflation is especially felt in the Asia-Pacific. But Maersk has an optimistic outlook on industry growth, especially in Vietnam, where manufacturing and exports are major economic driving forces. With the acquisition closed, customers get immediate access to a combined global warehouse footprint that spans more than 6 million square-meter across 450+ warehouses.
The World Bank ranked Vietnam 39th place in its logistics performance index in 2018, way above its Southeast Asian neighbors. According to Agility 2022, the Vietnamese logistics market is ranked 11th in 50 emerging logistics markets globally.
Vietnam’s GDP growth is expected to be at 7.2 per cent this year. The annual growth rate of the period 2022 – 2030 of Vietnam’s logistics market is forecasted to reach 5.5%. Foreign investors also assessed that Vietnam has many opportunities to develop logistics services.
Maersk and LF Logistics aim to lead Vietnam’s integration into the supply chain through a solid global logistics network with comprehensive warehousing, distribution, and fulfillment capabilities that are data-optimised and technology-driven. The merger is expected to increase efficiency with LF Logistics’ new omnichannel fulfilment product.
Mr. Kevin Burrell, Area Managing Director for Maersk Vietnam, Cambodia, Myanmar, and Laos, said: “By integrating global solutions, Maersk’s existing fulfillment capability will be combined with LF Logistics’ operating methods, technology and supplier relationships to provide and create long-term growth for our customers. We will have a very attractive omnichannel-fulfilment offering – all provided by the same company- making life much easier for our customers worldwide.”