Gurugram, India, Aug. 16, 2023 (GLOBE NEWSWIRE) -- History of steady growth alongside a positive future forecast provides UAE’s logistics Market increasing confidence & interest of stakeholders, says a report by Ken Research
1. Various Factors to be the backbone of Market development in UAE’s Freight Forwarding Market
Growth Factors in UAE’s Freight Forwarding Market
- Growth of e-commerce industry post COVID-19, increasing use of multimodal transport and increased outsourcing of logistics services will contribute in the growth of UAE freight forwarding market in between 2021 and 2026F.
- Sea freight prices per ton per km was USD 0.002 in 2017 which touched USD 0.005 in 2021. Followed by the sharp increase in the air & sea freight rates in 2020 and 2021 due to surge in oil prices, the rates are expected to normalize from 2022.
The government is also upgrading airports, ports, and transportation networks. Factors such as development of sea ports alongside introduction of innovative technologies such as Blockchain is expected to drive the future market growth of UAE Logistics Market. Nearly a half of GCC countries cargo inbound flows is channeling through UAE as of 2022. Therefore, expansion of handling capacity of ports such as Khalifa Port, will serve as a catalyst for the freight forwarding market in UAE.
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2. “Technology to the Rescue:” Efficient Freight Matching, Better Profitability, Smarter Operations and Greater Service Quality are some of the benefits of Digital Freight Aggregator Platforms.
Efficient Freight Matching - Shippers can post shipping orders in a standardized manner, get quotes from reliable truckers often within minutes and make informed decisions about their suitability based on truckers’ profiles and track records. Truckers can find shipments in minutes while on-the-go, without having to travel to and wait for days at Logistic Parks.
Better Profitability - Shippers enjoy lower shipping costs and more transparent pricing as they can interface directly with truckers, cutting out layers of middlemen and the need to rent space at logistics parks. Truckers can achieve higher income and utilization rates as less time and mileage is spent finding shipments.
Smarter Operations - Shippers are supported by software that improve their operations such as transportation management systems as well as data-driven algorithms that recommend suitable pricing for shipments. Truckers are supported by software and data-driven algorithms that recommend suitable shipments, suggest optimal routes, and simplify their operations.
Greater Service Quality - These platforms can act as an escrow agent through which freight deposits are made to and held by until shippers confirm that the relevant transactions are completed, allowing shippers and truckers to transact with greater assurance. Lastly, these platforms provide round-the-clock customer service and protocols for dispute resolution.
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In the context of the logistics market in the UAE, technological advancements like the implementation of Efficient Freight Matching systems have emerged as highly advantageous elements. These innovations contribute significantly to enhancing profitability, optimizing operational processes, and elevating the overall quality of services within the logistics sector. Notably, Digital Truck Aggregator Platforms play a pivotal role in this landscape, boasting substantial benefits. One of the prominent advantages they offer is the extensive presence of both shippers and truckers within their network. Moreover, these platforms provide a range of essential services such as Freight Listing, Freight Brokerage, and Online Transactions, all of which contribute to generating revenue streams.
In addition to their revenue-generating capabilities, these digital truck aggregator platforms are actively reshaping the trucking industry in the UAE. This transformation is primarily characterized by the heightened operational efficiency they bring about. Through streamlined and optimized processes facilitated by these platforms, various operational complexities are mitigated, leading to smoother workflows and improved resource utilization. An additional noteworthy outcome of this transformation is the reduction in costs associated with logistics operations, as inefficiencies are minimized and resource allocation becomes more precise. Consequently, these improvements ultimately culminate in an increased level of profitability, a key objective for businesses within the logistics sector. As a result, the utilization of digital truck aggregator platforms not only signifies a technological advancement but also a strategic shift that positively impacts the logistics landscape in the UAE.
Market Taxonomy
UAE Logistics Market Segmentation
By Service Mix
- Freight Forwarding
- Warehousing
- Courier, Express Parcel Market
- Value Added Services
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UAE Freight Forwarding Market Segmentation
By Mode of Transport
- Sea
- Road
- Air
- Rail
By type of Freight End Users
- Retail
- Automobile
- Pharma
- Others
UAE Warehouse Market Segmentation
- Industrial/Retail Warehouses
- CFS/ICD Warehouses
- Cold Storage
- Agriculture and Other Warehouses
By End-Users
- Retail including Garments, Cosmetics
- Automotive & Engineering
- E- Commerce
- Pharma/ Healthcare
- Others
UAE CEP Market Segmentation
By Domestic/ International Shipments
- Domestic Shipment
- International Shipment
By End-Users
- E-Commerce
- Retail
- Others
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The market size on the basis of revenue is expected to grow tremendously from 2021 to 2026. The escalating demand for retail logistics across the U.S. due to the pandemic is expected to propel market growth in the forthcoming years. A retail logistics company provides services, including inventory management, packaging, cross-docking, and door-to-door delivery. The rapid growth of the global e-commerce sector and the development of new technologies drive the demand for logistics services. The end-use industries and manufacturers generally lack the internal control needed for addressing logistics issues. Such factors have provided a boost to the growth of the logistics industry.
The Australian logistics and warehousing industry is expected to increase at a CAGR of 3.4% from 2020 to 2025. The freight forwarding market will continue to dominate the Australia logistics and warehousing industry. The government has launched various programs in order to develop the infrastructure of the country hence facilitating the logistics market growth in the future years. The rising retail and FMCG industry of the country will accelerate the demand for warehouse storage and transportation & logistics facility. The industry will move towards digital growth with the introduction of cloud logistics, drone facilities, automation, and more.
Germany E-Commerce Logistics Market Future Outlook: Germany’s E-Commerce Logistics market is expected to register a positive CAGR during 2021-2026F owing to an increase in the competition and customer expectations. Various technological advancements related to IoT, AI, and LiDAR are expected to drive the market in logistics where it will reduce human intervention and help in cost saving in logistics companies. The market for Standard Delivery is expected to lead in the coming future due to the fact that express deliveries are expensive compared to standard deliveries, however, there will be a growth in terms of express deliveries owing to the fact that companies will offer cost-effective express deliveries.
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