Asia-Pacific logistics operators are facing rising delivery costs and increasing pressure to modernize last-mile operations, according to a new industry report released during the “Last Mile Leaders Asia 2026” summit in Bangkok.
The “Eye on the Last Mile 6.0: APAC Report 2026” by logistics technology firm FarEye found that average delivery costs across the region increased by 18.9% year-on-year, with 75% of operators identifying inefficient routing as the biggest operational bottleneck.
The report gathered insights from more than 500 logistics leaders and operators across 24 Asia-Pacific economies, with support from the Asian Supply Chain Logistics Alliance (ASCLA) and the Supply Chain Management Association of the Philippines (SCMAP).
Aside from routing inefficiencies, the study cited driver shortages, visibility gaps, complex returns, and manual carrier audits as major sources of operational losses for logistics companies.
The report also pointed to changing customer behavior, noting that consumers now prefer predictable delivery windows nearly twice as much as faster shipping. About 60% of operators said customers are willing to pay more for guaranteed delivery reliability.
“Across APAC, the last mile is no longer being measured purely on speed or cost,” said Kushal Nahata, co-founder and CEO of FarEye.
“Customer experience, operational efficiency, and delivery economics are becoming deeply interconnected. The organizations that will lead the next phase of logistics are those building orchestrated delivery networks capable of making smarter decisions in real time.”
The study also highlighted the rapid adoption of artificial intelligence in the region’s logistics sector. According to the report, 98.3% of logistics leaders expressed trust in AI-driven decision-making, with companies deploying AI tools for routing, dispatching, estimated time of arrival predictions, exception management, and carrier selection.
FarEye said APAC logistics providers are adopting AI technologies faster than counterparts in North America and Europe, although implementation remains limited by legacy systems, poor data quality, and capability gaps.
“The future of logistics in Southeast Asia will depend heavily on how well ecosystems work together, from carriers and retailers to technology providers and fulfillment operators,” said Rob Locke, chief technology officer of GoGo Xpress.
“The next phase of growth will be driven by connected operations, collaboration, and interoperable systems that can scale efficiently while continuing to meet rising customer expectations.”
Companies represented in the research initiative included Abenson, AC Logistics, GoGoXpress, Hawk Logistics, QuadX, Fast Logistics, JB Hi-Fi, Suysing, Philippine Span Asia Carrier Corp. (PSACC), and CDO.
