Thursday, August 1, 2019

Saudi Arabia Logistics and Warehousing Market Dominated by High Demand for Non-Express Deliveries, Industrial and Retail Warehouses: Ken Research


The report titled, Saudi Arabia Logistics and Warehousing Market Outlook to 2023 (Second Edition) – Expected Recovery in Demand Growth with Rising Infrastructure Spending, Government Reforms and Surge in Tradeby Ken Research suggested that the companies operating in logistics and warehousing market in Saudi Arabia can expand their market share and increase revenue generated by focusing on express delivery, investing in air freight logistics and incorporate advanced technologies such as RFID and EDI in warehouses to improve efficiency. The market is expected to register an overall positive CAGR of 3.3% by revenue during the forecast period 2018-2023.

High Dependency of Small and Medium Enterprises: Small and Medium Enterprises accounted for more than 90% of all businesses in private sector of Saudi Arabia. Additionally, 50% of the small and medium enterprises operate in retail and trade sector which heavily depend on logistics industry. Monopolisation of the global shipping industry and difficulty in obtaining freight forwarding licenses has made small and medium enterprises, highly dependent on third party logistics. Thus, the demand for third party logistics for both freight forwarding and warehousing displayed a significant growth during the period 2012 to 2018.

Growing Customer Satisfaction: Costumer satisfaction has been observed to grow consistently for some features of logistics and shipping services such as SMS notifications, pan Kingdom coverage, shipment tracking (using the shipper’s online system or via email) and customs clearance assistance. Moreover, improving online shopping experience by delivering a more intuitive and seamless experience by adopting processes that can sync their orders from click to delivery, track shipments on their mobiles and inform and update customers about the delivery progress. These factors have collectively contributed in the positive growthof e-commerce logistics eco-system in the country.
Growing Purchase of Groceries Online: Households has started preferring purchase of groceries through online channels such as e-commerce websites or designated websites such as that of retail chains. Groceries require express delivery services due to low shelf life of the products. Additionally, emergence of new players and rising investment by existing players such as Wadi Grocery which received an investment worth USD 30 million from Majid Al Futaim is expected to drive the express logistics industry. The grocery delivery market was estimated to be an exorbitant SAR 430 million in 2016 thereby providing opportunities to last mile deliveries, cold chain and retail warehouses in the country.

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Expeditors Saudi Arabia Logistics
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Key Segments Covered
Logistics and Warehousing:
By Service Mix (Freight Forwarding, Warehousing and Value Added Services)
By End User Industry (Oil and Gas, Food and Beverages, Automotive, Industrial/Retail Sector, Engineering Equipment, Metals and Others)

Freight Forwarding:
By Mode of Freight (Road Freight, Sea Freight and Air Freight)
By Type of Delivery (Non-Express and Express Delivery)
By Level of Freight (International and Domestic Freight)
By Owned and Third Party Logistics
By Flow Corridors (Asian Countries, North American Countries, European Countries, Middle East, NAFTA and Others)
By International and Domestic Companies

Warehousing:
By Business Model (Industrial / Retail, Container Freight/Inland Container Depot and Cold Storage)
By Cities (Jeddah, Riyadh, Dammam and Others)
By Type of Warehouses (Closed Temperature Controlled, Closed Non-Temperature Controlled, Cold Storage and Open Yards)
By Owned and Third Party Logistics
By End Users (Food and Beverages, Automotive, Consumer Retail, Healthcare, Automotive and Others)

Express Logistics:
By Level of Courier (Domestic and International Express)
By Type of International Express (Air and Ground Express)
By Type of Domestic Express (Air and Ground Express)
By Business Model (B2B, B2C and C2C)

E-Commerce Logistics:
By Time Duration (6-12 Hours, 1 Day, 2 Day and More than 2 Day Delivery)
By Mode of Payment (Cash on Delivery and Online Payment)
By Location (Intra-City and Inter City)

Third Party Logistics:
By Market Type (Freight Forwarding and Warehousing)

Key Target Audience
Logistics Companies
Warehousing Companies
Cold Chain Companies
Express Logistics Companies
E-Commerce Logistics Companies
E-Commerce Companies
Logistics Association
Government Association
Investors and Private Equity Companies

Time Period Captured in the Report:
Historical Period: 2012-2018
Forecast Period: 2019E -2023E

Companies Covered:
Freight Forwarding Market:
Basem International Shipping and Logistics Co. Ltd.
Kuehne Nagel
Panalpina
DB Schenker
DHL
Expeditors
FedEx – TNT
Mubarrad (Saudi Transport and Investment Co.)

Warehousing Market:
LSC Logistics and Warehousing 
Agility Logistics
Almajdouie Logistics
Mosanada Logistics
Tamer Logistics
BAFCO International Shipping and Logistics Co. Ltd.
Hala Supply Chain Services
United Warehouse Co. Ltd.
Wared Logistics
Takhzeen Logistics
Etmam Logistics (Shahini Group)
Aramex
Kaden Logistics
Panda Retail Company

Express Logistics Market:
UPS
SMSA Express
Naqel Express
Zajil Express
Abdul LatifJameel Logistics

Third Party Logistics Market:
Wared Logistics
Abudawood Logistics
Mosanada Logistics
Tamer Logistics
DB Schenker
Abudawood Logistics
Kuehne + Nagel
DHL
Agility Logistics

For more information on the research report, refer to below link:

Related reports


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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249

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