Any kind of commodities, goods, or items that are shipped in large quantities by air, land, or sea are referred to as Freight. It is the sum of money paid for the conveyance of commodities by any method or by a combination of methods. Planning and carrying out the effective movement and storage of commodities from the point of origin to the point of consumption is known as logistics. Meeting client needs in a timely and economical way is the aim of logistics. Numerous businesses offer logistics services to retailers, manufacturers, and other sectors that require a lot of items to be transported. While some of these logistics companies specialise in one or two areas, others own the entire infrastructure.
GCC Freight and Logistics Market Driving Factors and Challenges
Driving Factors- The need for full logistics services, including inventory management, warehousing, and last-mile delivery, has increased dramatically as a result of the explosive rise of e-commerce. E-commerce companies today depend on extremely effective and adaptable logistics networks to remain competitive as customer’s demand faster, more dependable delivery. Logistics is changing as a result of innovations like automation, block chain, artificial intelligence (AI), and the Internet of Things (IoT), which make supply chain processes more efficient and transparent. These cutting-edge solutions improve visibility from the warehouse to the customer's door, increase productivity, lower prices, and enable real-time tracking. Furthermore, changing customer preferences—such as the need for eco-friendly procedures, speedier delivery, and easy returns—are pushing logistics firms to invest heavily in technology and implement sustainable tactics.
Challenges- Compared to other countries, the GCC's customs laws are more complex. The International Trade Administration states that there are a number of requirements for importing goods into GCC nations. The Zakat, Tax, and Customs Authority requires importers to provide a commercial invoice, bill of lading, and certificate of origin. Books, videos, and other personal publications may also be inspected and, if need, limited. Additionally, importers must finish the clearing process via the "Fasah" platform by submitting the proper paperwork and completing a customs declaration form at least Forty-Eight hours prior to the shipment arriving at the port of entry. These stringent laws may limit imports, which would affect demand in GCC Countries Freight and logistics industries.
Impact of COVID-19 on GCC Freight and Logistics Market
The COVID-19 pandemic had a detrimental impact on supply networks. During the pandemic, the logistics and freight operations were severely strained. During the second and third quarters of the COVID-19 pandemic, the governments of the GCC countries imposed lockdown restrictions. Additionally, the producers were forced to cease producing non-essential items. During the epidemic, businesses were only permitted to manufacture and market necessities including food, drink, medications, and personal hygiene items. Other issues that freight and logistics companies encountered during the pandemic included labour shortages, restricted transportation, and closed warehouses. However, the logistical operations resumed their normal course as the pandemic situation stabilised. During the epidemic, the e-commerce sector's need for logistics grew.
GCC Freight and Logistics Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as Al Madina Logistics, Al-Futtaim Logistics, Almajdouie, Aramex, Asyad, Bahri, DB Schenker, DHL Group, DP World, Others.
GCC Freight and Logistics Market Segmentation:
By End User Industry: Based on the End User Industry, GCC Freight and Logistics Market is segmented as; Agriculture, Fishing and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others.
By Logistics Function: Based on the Logistics Function, GCC Freight and Logistics Market is segmented as; Courier, Express and Parcel, Freight Forwarding, Freight Transport, Warehousing and Storage, Other Services.
By Region: This research also includes data for Qatar, Saudi Arabia, UAE, Rest of GCC.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.