How oman freight forwarding market evolved?
Freight forwarders specializing in arranging
storage and shipping of merchandise on behalf of its shippers are called
freight forwarders. They usually provide a full range of services such as
tracking inland transportation, preparation of shipping and export documents,
booking cargo space, negotiating freight charges, freight consolidation, cargo
insurance, and filing of insurance claims. The freight
forwarding in Oman has existed for centuries with a history of spice
trade with Indian traders. The ports of Oman have long history and have been
the centers of trading activities. As majority of edible and manufactured
products arrived from countries like India which served as the major partner of
trade, the freight forwarding has grown organically in the country. With the
discovery of oil and gas in the region, a lot of international companies came
over to the Sultanate. The number of international flights (arrivals and
departures) at the airports in the Sultanate rose by 11.9% in 2016 totaling
98.3 thousand, compared to 87.9 thousand in the previous year. The Port of
Salalah, the largest port in Oman, is centrally located at the crossroads of
trade between Asia and Europe. It has over 2.5 billion consumers and it serves
the markets of East Africa, Red Sea, Indian Subcontinent and Arabian/Persian
Gulf on its doorstep. The port operates both as a container terminal and
general cargo terminal. The Oman freight forwarding market has grown from USD ~
Million in 2012 to USD ~ Million in 2017 at a CAGR of ~%. Trade with GCC
countries will continue to drive the growth of freight forwarding in the
region.
Oman Freight Forwarding Market Segmentation
By Normal and Express Delivery
The normal /
standard delivery segment dominated Oman freight forwarding market with the revenue
share of ~ % whereas the express delivery segment has only~% in the year 2017.
Normal delivery services are generally preferred where there is no urgent
requirement for ordered goods. In Oman, majority of the customers prefer the
cheapest form of shipping and are witnessed to wait for longer durations. Major
companies operating into normal delivery includes DHL, Aramex, GAC Oman, Allied
Logistics, Majan Shipping.
By Freight
Movement Mode
The Sea freight segment dominated Oman freight
forwarding market by capturing the major revenue share of ~% in the year 2017.
The country has three major ports Sohar, Salalah and Duqm. The air freight
segment followed road freight services in Oman freight forwarding market with
~% of market share. The major air freight in the country is managed by the
Muscat International Airport followed by the Salalah Airport. The remaining revenue
share was captured by road freight with a market share of ~% in 2017
By Flow
Corridors
Asia flow corridor was observed to be the
largest contributor in terms of revenue in Oman freight forwarding market by
capturing almost half of the revenue share in the year 2017. The Oman-Europe
flow corridor followed Oman-Asia in the revenue share percentage with ~% in the
year 2017. Other major flow corridor includes the NAFTA countries and GCC
countries.
By
International and Domestic Companies
International companies operating in Oman freight
forwarding market dominated by capturing more than half of the revenue share in
the year 2017. Targeted entities for
international freight forwarding companies are the international MNCs as such
they always seek to make alliances with international freight companies backed
by extensive service network and brand image in the market. Most of the
international companies follow the asset light model as they don’t keep their
own fleet to control the costs.
The Domestic companies although having their
own fleet, do not have much foothold in the market. They only capture ~% of the
freight forwarding market in 2017.
Oman Freight Forwarding Market Future Outlook And
Projections
Oman freight forwarding market is expected to generate
revenues worth USD 516 million by the year 2018, driven by growing E-commerce
industry, continuous investment by the government in development of logistics
infrastructure in Oman and the prevailing optimistic business sentiments in the
sultanate
The Oman freight forwarding market is expected
to be driven by the rising industrial activities, growing e-commerce industry,
rising purchasing power, elevated demand for food, upcoming infrastructural
projects and focused investment by the government in development of the
industry. The Oman government aims to
position the Sultanate as a vital logistics center by 2040 under SOLS 2040 for
its strategic logistics positions such as Duqm, Sohar, Salalah, and Muscat,
high quality infrastructure, competitiveness and qualified human resources in
this sector.
Under the ninth five year plan of the country,
the Oman government has planned to reduce the oil dependency of the economy by
almost half of what it was at the beginning of the plan in 2016. This move is
supported by the Oman Logistics Strategy (OLS 2020) and thus will be a major
growth driver for the logistics sector in the country.
Oman's logistics strategy drafted by the
experts of Oman Logistics center focuses on four main axes: markets,
technology, trade facilitation and human capital. It aims to analyze, identify
and monitor opportunities by sector or by where the logistics sector can
attract them and undertake projects or activities that enable it to achieve its
target share of the shipping market. It also aims for adoption of a clear and
intensive marketing policy locally, regionally and internationally.
For more information on the research report, refer to
below link:
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