The 2025 State of Logistics Report, released by Kearney and the Council of Supply Chain Management Professionals (CSCMP), outlines key global logistics developments that hold direct implications for Australia’s supply chain and logistics sectors.
Air freight is forecast to grow 5.8 per cent globally in 2025, down from 8.6 per cent in 2024. This growth has been largely driven by surging e-commerce volumes from Chinese platforms like Temu and Shein—both of which have rapidly expanded into the Australian market. Changes to the US de minimis threshold are expected to affect global air cargo flows, and any parallel regulatory adjustments in Australia could influence local parcel volumes, delivery costs, and customs operations.
The report highlights a “barbell effect” in consumer shipping preferences – split between ultra-fast delivery for essentials and ultra-low-cost delivery for non-essentials. This mirrors trends in Australia, where major retailers like Amazon and Woolworths are expanding rapid delivery capabilities, while budget-conscious consumers increasingly accept slower, cheaper options from international sellers.
Freight forwarding is undergoing significant change, marked by consolidation and reshoring trends. Although Australia is not directly involved in major deals like DSV’s US$15.9 billion acquisition of DB Schenker, the growing use of AI, trade diversification, and tariff management tools is relevant to Australian importers adapting to regional supply shifts from China to Southeast Asia.
Warehouse automation and cost pressure are also key themes. The report notes rising vacancy rates and slower rent growth in the US, with firms relying on AI and automation to maintain efficiency. Australian warehouse operators are experiencing similar challenges – particularly as leases signed before COVID-19 come up for renewal at higher rates.
Sustainability pressures are mounting globally, with companies balancing fragmented regulation and financial constraints. In Australia, logistics firms face varied compliance requirements across states and increasing demand for emissions transparency from customers and investors.