The Asia-Pacific (APAC) logistics sector has reached a critical inflection point. Faced with skyrocketing delivery costs, evolving consumer expectations, and highly fragmented last-mile operations, enterprises across the region are racing to modernize their supply chains.
Released today at the Last Mile Leaders Asia 2026 summit in Bangkok, FarEye’s benchmark study, Eye on the Last Mile 6.0: APAC Report 2026, reveals that the regional logistics industry is rapidly abandoning the traditional trade-offs between speed, cost, and customer experience. Instead, the market is shifting toward a new model centered on reliable, transparent, and consistent delivery experiences at scale.
Produced with support from the Asian Supply Chain Logistics Alliance (ASCLA) and the Supply Chain Management Association of the Philippines (SCMAP), the report compiles comprehensive insights from more than 500 logistics leaders and operators spanning 24 APAC economies. Notable organizations participating in the research include Abenson, AC Logistics, GoGoXpress, Hawk Logistics, QuadX, Fast Logistics, JB Hi-Fi, Suysing, POSMY, BJC Big C, Philippine Span Asia Carrier Corp. (PSACC), and CDO.
The report highlights an increasingly challenging economic environment for regional operators, revealing that average delivery costs across APAC have surged by 18.9% year-on-year.
A staggering 75% of operators identified inefficient routing as the industry’s single largest operational bottleneck. Additionally, the study points to driver shortages, visibility gaps, complex returns, and manual carrier audits as primary sources of hidden margin leakage currently draining profitability across regional logistics networks.
Concurrently, customer expectations are undergoing a dramatic transformation. The report finds that APAC consumers now prefer predictable delivery windows nearly two-to-one over faster shipping. Furthermore, 60% of operators report that customers are actively willing to pay a premium 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.”
To combat these headwinds, APAC logistics providers are embracing automation at an unprecedented pace, outpacing their counterparts in both North America and Europe.
The report found that an overwhelming 98.3% of logistics leaders express trust in AI-driven decision-making. Companies across the region are actively deploying AI to optimize routing, dispatching, ETA prediction, exception management, and carrier selection.
However, FarEye notes that actual deployment continues to be hindered by legacy infrastructure, poor data quality, and internal capability gaps. This signals a critical paradigm shift: the industry’s greatest hurdle is no longer building trust in AI, but achieving operational execution at scale.
As logistics ecosystems across Southeast Asia become deeply interconnected, industry leaders are emphasizing that long-term growth will require intense collaboration between carriers, retailers, fulfillment operators, and technology providers.
“The future of logistics in Southeast Asia will depend heavily on how well ecosystems work together,” said Rob Locke, Chief Technology Officer of GoGo Xpress. “Communities like Last Mile Leaders play an important role in bringing the industry together to solve shared operational challenges as delivery networks become more complex. 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.”
As regional supply chains grow in complexity, FarEye concludes that the ultimate competitive advantage in APAC logistics will belong to companies that can successfully orchestrate fragmented delivery ecosystems into connected, intelligent, and highly predictable networks.
