Overview
The Logistics market
has been substantially impacted by the overview and usage of new technologies.
Some of fresh technologies in logistics market are worldwide positioning system
(GPS), order entry systems, warehouse management systems, transmitting
communication system, the Internet of Things, automated transportation and
comparable futuristic innovations, and transportation management system (TMS)
amongst others.
Although, The Logistics industry across the UAE is one of the
highest 5 logistics markets around the world, provided the favorable location
of UAE at the crossing of Asia, Africa & Europe. Growth in the industry has
been encouraged due to the high effortlessness of doing business in the
Emirates, owing to which the country is home to a lot of worldwide and
multi-national brands.
The industry is home to a tremendously robust Freight Forwarding
segment, propelled by the UAE’s position as a foremost facilitator for worldwide
re-exports. In addition, given its great dependence on Imports for Consumer
Products and Technology, the UAE has robust trade relations with far-Eastern regions,
European countries and the US. Provided its oil-producing proficiencies, the region
relies greatly on Sea Freight as a mode of cargo transport, with the service
being almost a communal feature amongst freight forwarding corporates in the
country. The UAE also has a robust warehousing market segment, propelled by
players that lease warehousing space for long periods of time.
Furthermore, the Warehousing operations near to the Jebel Ali Port
and Dubai Airport are measured most favourable to decrease the transportation
cost from port to mother-hub. The Courier, Express and Parcel market is influenced
by growth in Last-Mile deliveries and the E-Commerce sector across the country.
Enlargement of the e-commerce industry coupled
with augment in reverse logistics operations
E-commerce denotes to the purchasing and selling of goods by utilizing
the internet. Third-party logistics service providers incorporate shipping of
products to customers. In addition, the e-commerce industry uses logistics
service to accomplish and oversee the supply chain of e-commerce corporates, which
enables these corporates to aim on marketing and other business functions.
Thus, owing to numerous benefits delivered by the logistics to the e-commerce
industry, implementation of logistics service is augmenting at a significant
rate, which in return is influencing the growth of the logistics market.
Challenges
for Logistics Market in the UAE
Over-dependence on Imports: Levels of
domestic producing in the region have remained very low since 2009. On the
account of this industries have majorly demanded freight forwarding services
from logistics service delivers during this duration. This has left very restricted
scope for end-to-end logistics services across country. In addition, the small
size of the domestic producing has forced the logistics corporates to serve the
international markets during the recent years which have made cost efficiency
very important.
Limited Options in Surface Transportation: While
the UAE possesses a highest notch sea and air transportation network, the choices prevail in surface transportation have remained restricted since 2009. Corporates can
send combined freight only by road as there is a shortage of a well-organized
rail network in the country. Owing to this the influence of road transport in
the entire logistics revenues of the country has continued meaningfully low over
the past five years, especially when associated to logistics markets in
countries such as Saudi Arabia.
Competition Overview
The competition in the Logistics space across the UAE can be categorized
on the basis of different service sectors involving Freight Forwarding, Contract
Logistics (Warehousing) and Express Delivery.
International players likewise Kuehne + Nagel, DB Schenker, DHL,
Agility were recognized to be overriding when it comes to Air Freight and Sea
Freight, simply owing to the great MNC accounts managed by such corporates and
the strong capacities they transport from international markets to the UAE.
When it comes to the Land Freight, local corporates such as Avalon, Allied
Transport, ATS, Mohebi Logistics and NTDE were acknowledged to be most
dominant, owing of their trucking fleet across the Emirates.
While the International Express market around the UAE is concentrated
amongst the majorly worldwide players such as DHL, FedEx and UPS, the Domestic
Express market is more fragmented owing to weighty competition amongst local
players such as Zajel Courier Services, Skynet, and Time Express. Emirates Post
is a government possessed body that leads the Domestic Express market.
Future Growth
While the COVID-19 situation has hit worldwide supply chains greatly,
the UAE has been moderately less impacted. The logistics market in the region
is projected to grow on the back of fresh technologies such as Automation,
Blockchain and Internet of Things, which will be discovered to augment
efficiency, develop customer experience and improve service quality. The pharma
logistics sector and the e-commerce logistics segment are projected to drive
growth during the future, given the predicted increase in medical products demands
post COVID-19 and the increasing penetration of e-commerce in the country.
Key Target
Audience:-
3PL Logistics Companies
Integrated Logistics Companies
E-Commerce Companies
Oil & Gas Companies
Retail Companies
Pharmaceutical Companies
Logistics/Supply Chain Industry Associations
Time
Period Captured in the Report:-
Historical: 2015 to 2019
Future: 2019 to 2025
Companies
Mentioned:-
Kuehne + Nagel
Agility
Emirates Post
Al-Futtaim Logistics
DB Schenker
DHL
FedEx Express
UPS
Allied Transport
Freightworks
Zajel Courier Services
Time Express
Bollore Logistics
Danzas AEI
Mohebi Logistics
Hellmann Worldwide Logistics
Tristar
Gulf Agency Company
CEVA Logistics
ATS
Skynet
Sky Express
Avalon General Land Transport
GSL (Global Shipping and Logistics)
RSA Global
Roadlink Transport
Al Mujarad Transport
For More
Information on the research report, refer to below link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
