GURUGRAM, India, Aug. 26, 2021 /PRNewswire/ -- UAE News
Etihad Cargo has outlined its plans to focus on COVID-19 focused services, setting up a dedicated COVID-19 distribution team in anticipation of a vaccine for the virus. Its new specialized pharma and healthcare product PharmaLife, will focus on key gateways including Abu Dhabi, Barcelona, Chicago, Paris, Dubai, Frankfurt, Hyderabad, London, Milan, Melbourne, Mumbai, Shanghai, Singapore, and Sydney.
Amazon.ae announced that it has launched International Shopping Experience, delivering items from the UAE to Bahrain, Kuwait and Oman. The delivery includes import fees along with customs clearance managed by Amazon's couriers. The move acts as a strong fillip to the growth of e-commerce across the Middle Eastern region.
In a historic step for global trade, the UAE and Israel agreed to normalize relations in mid-August 2020 and signed a normalization agreement in September. In October, a ship carrying cargo from the UAE, docked at an Israel's Haifa Port. The ship will bring cargo from the UAE to Israel on a weekly basis.
Impact of COVID-19: The COVID-19 pandemic impacted overall supply chain operations in the UAE, with road freight due to sealing of borders and air freight due to flight cancellation being the major sufferers. Moreover, companies have been struggling with employee infections and have been forced to move to a remote working setup, at least for the non-operational staff. The industry is gradually recovering from the transport restrictions. Going forward, pharmaceutical logistics will play an important part in distribution of the COVID-19 vaccine, once it is ready and is hence expected to lead vertical market growth in the future. The demand for essentials and daily usage consumer products went up during the lockdown period, and is expected to continue to grow, as the retail segment looks to be the highest contributing vertical to logistics in the UAE.
Freight Forwarding is expected to be Lead Contributor: While the UAE Logistics industry is composed of different service segments such as Freight Forwarding, Warehousing, Express Delivery and Value Added Services, it is the Freight Forwarding Segment that is expected to continue being the leading segment in the future. Express market segment is identified to grow at the fastest pace, due to growth in e-commerce deliveries and companies.
Technological Advancement to Drive Growth: Government Initiatives such as Dubai IoT Strategy, Dubai Block Chain Strategy, Introductions of drones for last-mile delivery, UAE National AI Program, Smart Dubai 2021, Dubai 3D printing Strategy, Dubai Data Initiatives and National Innovation Strategy will revolutionize the logistics and warehousing market of UAE.
The market showcased a volatile growth trajectory. Dry logistics revenue declined at a CAGR of single digit CAGR during 2015-2019 due to oil price shock further leading to an economic slowdown during 2016-2017 periods. Saudi Arabia is located at the crossroads of significant international trade route that connects Asia, Europe and Africa. This strategic location provides the Kingdom with a unique advantage over other nations thus, enabling it to become a leading regional logistics hub. In April of 2016, Saudi Arabia announced its Vision 2030 which includes transforming the Kingdom into a preferred logistics hub. It is making continuous efforts to make imports and exports processes more streamlined. Additionally, government is restructuring the regulations and structures logistics sector government and opening the way for market liberalization and private sector participation. Expansion of industrial cities continues to offer opportunities for foreign investors towards developing the non-oil manufacturing base, warehousing & logistics segments. For instance, Pfizer opened a manufacturing facility in the King Abdullah Economic City in the year 2017. Non-oil manufacturing growth is facilitated by launch of National Industrial Development and Logistics Program (NIDLP) in Jan 2019 by KSA government. Various companies are investing in Special bulk trucks and heavy lift movements to diversify their Revenue streams and Operations. For instance, Bahri launched new dry-bulk carrier 'Sara' & increased their total fleet of dry-bulk carriers to 6 ships in KSA.
Philippines Logistics Market has witnessed an average CAGR during 2014-19 due to favorable laws from CTAP, Investments in Bridges to promote Inter-island transportation through RORO, and development of ports both by the government and with Public-Private Partnerships. The Current logistics cost comprise 27.16 % of sales in the Philippines which is very high in comparison to other SEA countries. The influx of foreign players, increasing consolidation, Green freight policies by the Government, and investing in innovative technologies has stimulated the growth in the market.
India has been ranked at 4th position in the world in railway freight traffic after China, the US, and Russia. Under the land freight corridors, 65% of domestic freight volume carried through the road; high compared to ~50% in developed countries. India Logistics Market has witnessed an average CAGR during FY14-FY19 due to favorable policy reforms from the government, continued investment in infrastructure by both the government and the private sector; the influx of foreign players in the market in recent years, increasing consolidation, and investing in innovative technologies has stimulated the growth in the market.
The Chinese Logistics Market was observed to be in growth stage during the period of 2015-2020 owing to the expanding manufacturing & retail sector, increasing disposable income, growing number of investments and increasing value of exports and imports in the country. The China Logistics Industry has grown at a CAGR of 5.4% on the basis of revenue. The market is booming owing to increasing infrastructure investment, rising digital innovations and growing logistic demand in China. The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by courier & parcel activities and warehousing. Value Added services also contribute a significant proportion to the overall logistics market in China.
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