FORWARDING Emerging Markets, Evolving Logistics
CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
Awakening the Waves: The Rise of Seagliders
Drive the new way.
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16 TALKING POINT TOMORROW’S FUTURE
18 OP-ED
RIPPLE EFFECT: SANCTIONS ON GLOBAL SUPPLY CHAINS
20 TRENDS
2025 TRENDS: SHAPING THE FUTURE OF WAREHOUSING AND INTRALOGISTICS
24 KSA
SAUDI ARABIA’S LOGISTICS ASCENT
28 INNOVATION A MARVELOUS ROADMAP 32 FREIGHT FORWARDING EMERGING MARKETS, EVOLVING LOGISTICS 34 AUTOMATION THE ACME OF AUTOMATION 38 INTERVIEW AWAKENING THE WAVES: THE RISE OF SEAGLIDERS
42 DRONES THE SKY IS NOT THE LIMIT
44 SHIPPING TURMOIL ON THE RED SEA
48 TECHNOLOGY THE TECH DRIVEN FUTURE OF SUPPLY CHAIN
52 LAST-MILE
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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE
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In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. We’re looking forward to interacting with our readers on all of our social media and web platforms. See you on the web!
addition to our we’re bringing you all sorts of industry news on our web mediums. We’re looking forward to interacting with our readers on all of our social media and web platforms. See you on the web!
Ignite the Fire
There is a small flame running around somewhere inside of us. This is our small goal that drives us to wake up every day and do better. Everyone’s small flame varies depending on different motives - family, success, money, a lifelong legacy, or it could be anything. If what we are doing every day to achieve this goal happens to be what we love doing at the same
time, this flame can turn into a fireand this fire will make us undefeated individuals, not in the sense that we won’t fail, but that we would fail 999 times and go again for the one thousand until it works. It will create miracles - something that is truly unseen before, and every single one of us is capable of that.
on whether we are taking care of this little flame, if it’s not already a fire. The logistics industry, much like our personal journeys, has been growing more than ever. It is an exciting time to witness all the changes that are taking place. Technology, in particular, has been under the spotlight frequently, with advancements in automation to AI, robotics, drones, and more. The region is also undergoing remarkable transformations. From the UAE’s ongoing strides in innovation and sustainability to Saudi Arabia’s Vision 2030, the sector is constantly evolving to meet the diverse needs of the businesses and individuals alike.
It is truly thrilling to see this continuous evolvement in this sector, in everything around us, and within us. This is a good time to pause and reflect on what we have achieved and what we will achieve. Let’s step into 2025 with renewed energy, letting that fire burn brighter as we do it all over
As the year is coming to an end, it is the perfect time to reflect on our milestones in the year and check
Xiaoyue (Aya) Zhang xiaoyuezhangg
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NMDC GROUP CREATES NEW LOGISTICS & TECHNICAL SERVICES DIVISION
The new business unit builds on NMDC’s extensive portfolio by adding logistics and technical services to its marine, EPC, engineering, and civil construction business lines
NMDC Group (ADX: NMDC), the Abu Dhabi based EPC powerhouse in the global dredging, marine civil, and energy sectors, announced today the latest step in its remarkable growth and innovation story; the establishment of its new business unit, NMDC LTS.
The new business unit will enable customers and partners to gain the benefit of NMDC Group’s extensive experience and capabilities in the logistics and technical services sector that have been built over decades of outstanding EPC project delivery. Built on NMDC Group’s strong foundations of world class resources, operational excellence, and industry leading technical expertise, NMDC LTS will enable customers and partners to benefit from NMDC Group’s innovative solution driven approach that underpins its ongoing journey of growth and diversification.
NMDC LTS will own and/or operate NMDC Group’s significant resource pool of marine support craft, technical capabilities, plant & equipment to enable the expansion of its services beyond the ongoing support to NMDC Group’s business units to the wider construction and industrial sectors. Through collaborative strategic partnerships, cross-industry
synergies, and AI driven optimisation, NMDC LTS will be strongly positioned to deliver cost effective, innovative solutions across a wide range of services beyond the delivery of world class infrastructure that NMDC Group is renowned for.
Eng. Yasser Zaghloul, CEO of NMDC Group, said: “NMDC Group is a global leader in the marine EPC sectors which, by its nature, demands efficient and effective logistics and technical services to enable remarkable projects to be delivered to our clients. The scale and breadth of our operations naturally positions us to extend our services beyond the delivery of dredging & marine and energy EPC projects.
NMDC LTS will be a trusted platform that gives new partners access to one of the biggest construction logistics and technical services operators in the region and enable them to gain the benefits of efficiency, innovation, and service focused delivery that NMDC Group has built over the decades of success. We look forward to continuing to work with our current partners in this exciting next phase of NMDC Group’s growth, and to take our expertise and offering to new clients and markets.”
A MAJOR MILESTONE FOR KSA’S CONSTRUCTION INDUSTRY WITH THE INAUGURATION OF RIYADH METRO
Riyadh Metro represents the backbone of the capital’s public transportation network
His Majesty King Salman bin Abdulaziz Al Saud inaugurated the Riyadh Metro, the backbone of the capital’s public transport network.
Riyadh Metro will feature six lines spanning 176 kilometres to ensure a fast, reliable, comfortable commuting experience. The network has been developed to transport over 3.6 million passengers at maximum capacity and operates on a fully automated (driverless) metro system. In line with Vision 2030, Riyadh Metro will significantly bolster Riyadh’s urban mobility and the services and logistics sector.
Riyadh Metro is a key component of Riyadh Public Transport (RPT), a well-integrated and efficient public transport network designed to serve residents and tourists alike. It includes metro lines, buses, feeders, Bus Rapid Transit (BRT), Bus on Demand, and Park & Ride facilities.
His Royal Highness Crown Prince, Prime Minister, and Chairman of the Royal Commission for Riyadh City (RCRC) stated: “The Riyadh Public Transport Project, which spans metro and bus networks, is the culmination of concerted efforts made by His Majesty King Salman bin Abdulaziz Al Saud, and the outcome of His Majesty’s visionary leadership while serving as Chairman of the High Commission for the Development of Arriyadh, the predecessor of RCRC.”
The metro will operate in phases, with the first three lines – the Blue Line (Line 1), the Yellow Line (Line 4), and the Purple Line (Line 6) – opening to the public on December 1st. Subsequent launches of the Red line (Line 2) and the Green line (Line 5) are scheduled for December 15th, while the Orange line (Line 3) is set to launch on January 5th,
2025, culminating in a complete network of six lines featuring 85 strategically located stations, including four iconic main stations: King Abdullah Financial District (KAFD), STC, Qasr Al Hokm, and Western Station.
H.E. Ibrahim bin Mohammed AlSultan, Minister of State, Member of the Council of Ministers, and RCRC CEO, commented:
“Today, Riyadh City is reaping the benefits of this project that will reshape the capital’s image and redefine mobility for its residents and visitors. The network aligns with Riyadh’s economic, social, environmental, and urban development objectives and represents a historic milestone in the capital’s transportation sector. Riyadh Metro will ease the daily lives and commute of citizens, residents and visitors, offering them a world-class urban travel experience.”
The Riyadh Metro is a crucial milestone of the ambitious plans outlined by RCRC to improve mobility and enhance quality of life. The project comprises 183 trains with a total of 448 cars manufactured by three leading global train manufacturers—Siemens (Germany), Bombardier (Canada), and Alstom (France)—and features a modern and unified design by Avant Premiere (France).
Riyadh Metro is integral to the city’s infrastructure network, supporting its future development and providing an efficient transport solution for Expo 2030 and other major world-class events.
Riyadh Metro reflects Saudi Arabia’s commitment to sustainable urban development, driven by the need to reduce pollution while addressing transportation demands. Aligning with global sustainability standards and smart, sustainable solutions, the network integrates environmental practices, featuring stations constructed with 20% recycled materials and local resources and engineered to lower energy and water usage. Riyadh Metro stations are committed to international sustainability standards in design and execution, having won gold LEED certifications for both the KAFD and Qasr Al Hokm stations.
J&T
EXPRESS EXCEEDS 100 MILLION GLOBAL PARCELS HANDLED IN A SINGLE DAY
The historical record highlights the company’s strong operational abilities and steadfast dedication to meeting the needs of its global clientele
J&T Express , a global logistics service provider, announced a new milestone in its growth trajectory, surpassing 100 million parcels handled worldwide in a single day during this year’s Double 11 shopping festival on November 12th.
Double 11 is a traditional peak season for China and Southeast Asia. From October 20 to November 12, J&T Express saw significant growth in parcel volume in both markets. In China, the daily average parcel volume during this period reached nearly 66 million, a 25% year-over-year (“YoY”) increase, setting a new record. In Southeast Asia, the daily average parcel volume from November 1 to 11 exceeded 15 million, marking an impressive 73% YoY growth.
In anticipation of the expected surge in parcel volumes during the multiple year-end shopping festivals, J&T Express implemented early preparations across various markets, increasing investment in infrastructure and human resources to ensure operational efficiency and service quality. In China, based on business forecasts and actual production needs, J&T upgraded and renovated 32 sorting centers nationwide, expanding operating areas and improving timeliness. Over 600 distribution hubs and outlets were also upgraded across the country, with over 400 sets of automated equipment deployed to enhance operational capacity and effectively manage the peak parcel volume.
Benefiting from the vast growth potential of Southeast Asian markets and close collaboration with e-commerce clients, J&T Express anticipated the increase in e-commerce parcel volume during Double 11 and made proactive preparations. In September and October, J&T Express Vietnam deployed over 300 trucks, and the company constructed its largest sorting center in North Vietnam, equipped with advanced operating
technology and equipment, which officially commenced its operations. This center boasts a parcel handling accuracy rate of 99.99%, significantly enhancing operational efficiency.
In Thailand, J&T Express upgraded four sorting centers and five distribution hubs, adding over 13 sets of automated equipment to boost operational capacity. As a result, the peak processing capacity of sorting centers increased by approximately 25%, and the distribution hubs saw a 20% improvement. Furthermore, J&T Express Thailand expanded its sorting area by approximately 19,000 square meters, added over 900 transport vehicles, and recruited over 3,800 personnel to meet the growing demand of sorting, delivery, and customer service sectors.
In other new markets, Black Friday (November 29th) marks the largest logistics peak season in Latin America. J&T Express has observed a significant upward trend in parcel volumes in Brazil and Mexico. To address the upcoming peak, J&T Express in both countries has proactively invested in infrastructure and human resources, upgrading automated equipment to meet the high-quality express service demands of both clients and consumers.
DHL EXPRESS APPOINTS ABDULAZIZ BUSBATE AS CEO FOR MENA REGION
Busbate embarked on his journey in Saudi Arabia, taking on several commercial roles that drove the organisation’s profitable growth
DHL Express has appointed Abdulaziz Busbate as the new Chief Executive Officer (CEO) of DHL Express MENA (Middle East and North Africa), effective January 1, 2025. He will succeed Nour Suliman, who recently stepped into a non-executive advisory role within DHL Group as President MENA. Abdulaziz Busbate will be based in Bahrain and will report directly to John Pearson, CEO of DHL Express.
Bringing 24 years of management experience at DHL Express to the role, Busbate began his journey
in Saudi Arabia, leading various commercial teams and contributing significantly to the organisation’s profitable growth. In 2014, he transferred to Bahrain as Country Manager, where he focused on service improvement and commercial development. In 2021, Busbate returned to Saudi Arabia as Managing Director, successfully driving forward the company’s strategy, including significant enhancements to service quality, investments in infrastructure and capacity, and development of the local workforce.
“We are excited to welcome Abdulaziz Busbate to this
pivotal role,” said John Pearson, CEO of DHL Express.
“His extensive experience, proven track record, and deep understanding of the region will be invaluable as we continue to drive growth and innovation in the Middle East and North Africa market, which continues to be a strategically important market for our customers and a source of talented, motivated employees for our global organisation.”
“I’m honored to lead this great team and build upon our strong foundations in this diverse, dynamic, and entrepreneurial region,” said Abdulaziz Busbate. “My focus will remain on expanding DHL’s leadership position in the Middle East and North Africa, enabling growth and delivering exceptional service to our customers. We will continue to invest in making DHL a Great Place to Work for our people and a pioneer of sustainable logistics, delivering a positive contribution to the communities we serve.”
Tomorrow’s Future
Innovations transforming lastmile logistics for tomorrow
E-commerce has revolutionised the retail sector globally, and the GCC region is no different. As a region with a promising digital economy, a young and well-knowledgeable population, and increasing urbanisation, the GCC has become a hub of e-commerce propelling activities. Among these advancements, last-mile delivery innovations are most significant in determining the industry’s future. They improve efficiency and enhance sustainability – a critical factor in the region’s recent efforts to transition to an environmentally friendly economy. Data from 2021 indicates that sales figures for retail made through e-commerce reached nearly 5.8 trillion dollars, which is expected to grow in 2023 as more and more consumers move towards shopping online instead of the traditional brick-and-mortar model. The COVID-19 pandemic fast-tracked this process and made it possible by increasing the amount spent online so that even the most opposing shoppers became accustomed to using e-commerce regularly.
The increased volume of online transactions has resulted in greater reliance on logistics services, especially last-mile delivery coverage, which is crucial in the supply chain. The last mile is the last leg in the supply chain and includes the movement of stocks from the distribution or depot to the customers’ end. Stats from
Originally written by Dr.Shereen Nassar.
Edited by Vibha Mehta.
Dr. Shereen Nassar, Global Director of Logistics Studies and Director of MSc Logistics and Supply Chain Management Suite at Heriot-Watt University Dubai
Capgemini suggest that the last mile represents 53% of the shipping costs and 41% of all expenses incurred in the supply chain. Businesses are under pressure to meet consumer expectations for services like same-day or hourly deliveries while balancing speed, cost, and sustainability. Effective last-mile delivery solutions are essential in the GCC region, where e-commerce will exceed USD 50 billion by 2025. Consumers in the UAE and Saudi Arabia demand efficiency, quality, and sustainability, driving companies to adopt innovative technologies and transform traditional delivery methods.
Drones and self-driving trucks, also known as autonomous delivery vehicles, are being efficiently trialed and implemented in the GCC. Dubai’s Roads and Transport Authority (RTA) has partnered with technology firms to explore autonomous delivery systems, which reduce human labor, improve delivery speed, and cut operational costs while supporting the UAE’s sustainability goals by lowering emissions. Smart lockers and pick-up points are also transforming last-mile logistics in cities. Firms like Aramex and Noon have introduced these features in several GCC cities, allowing customers to collect parcels at their convenience, reducing failed deliveries, and enhancing delivery route efficiency. Additionally, crowdsourced delivery models use third-party drivers and couriers to provide quick, flexible shipping solutions and increase scalability during shopping seasons.
AI and data analytics work hand in hand with these models by automating delivery routes and schedules. For example, firms in Saudi Arabia are utilising AI-based systems to track traffic flow and customer locations, ensuring deliveries are made on time while minimising fuel costs. Implementation of such technologies can not only satisfy consumers but also reduce the environmental impact of deliveries. The GCC countries are set to gain a competitive edge in last-mile delivery thanks to recent technological innovations. Government initiatives supporting eco-friendly technology, such as Dubai’s ambition to become a global hub for self-driving vehicles
and Saudi Arabia’s commitment to green logistics, will further drive this growth.
The transformation in consumer shopping habits and increasing demand for bio-sustainability will significantly impact logistics and supply chain companies in the GCC. This focus on sustainability and modern technology is essential for regional operators.
By embracing biodegradable packaging and selfdelivery systems, the GCC can capitalise on the expected growth in e-commerce. Addressing issues like waste management will help the region become a leader in the green economy, yielding substantial returns. Another notable trend is the presence of smart technology in packaging. More companies are applying IoT devices in their packaging to track conditions during transport, maintaining product quality and minimising losses. Additionally, many companies have started working with local distribution organisations that use electric cars or bicycles, sustainably enhancing last-mile delivery solutions. The combination of green packaging with green logistics will enable companies to significantly reduce their environmental footprint.
Finally, the need for sustainable development goals has improved green packaging for last-mile connectivity. By using eco-friendly, biodegradable materials, reusable systems, intelligent technology, and green logistics, the companies operating in the GCC are responding to their customers, who are becoming more eco-conscious and participating in creating a better world.
To conclude, observing the current trend of smart cities and green economy growth in the GCC region, last-mile logistics will always be at the forefront. Last-mile logistics will ensure companies meet customers’ growing demands and help achieve broader development in the respective areas. Such a development period is a great time for e-commerce and logistics in the Gulf region, where innovation and environmental sustainability become key factors in performance and customer interaction changes completely.
Ripple Effect: Sanctions on Global Supply Chains
Countries may be penalised for legitimate reasons, but it’s important for companies to know how this affects access to materials, markets, financing, and logistics
James Willn Partner - Energy & Natural Resources Group, Reed Smith
In today’s highly interconnected world, governments frequently use sanctions as a strategic tool to influence the behaviour of other nations. While these measures can effectively advance diplomatic objectives, they often trigger far-reaching and unexpected ripple effects, notably disrupting global supply chains.
In the rapidly evolving economic landscape of the GCC, where trade and commerce are the
lifeblood of prosperity, understanding the implications of international sanctions is not just beneficialit’s essential. The region is deeply integrated into the global economy, so businesses must be adept at navigating the complexities of sanctions that can disrupt supply chains, affect market access, and challenge financial operations.
This article explores the impact of sanctions on supply chains within the GCC and offers strategies for mitigating these risks through diversification and proactive planning.
How Sanctions Disrupt Supply Chains
Sanctions can prevent businesses from accessing key resources or markets. For example, energy sanctions on oilproducing nations can destabilize global energy markets, leading to shortages and price hikes.
In the technology sector, sanctions on countries like China and Russia have limited access to semiconductors and software, reverberating through industries reliant on high-tech components, such as automotive and consumer electronics.
Moreover, companies that depend on these sanctioned markets for raw materials or as export destinations are forced to either find alternative suppliers or reconfigure their supply chain to comply with new regulations, which can result in increased costs and lead times.
Sanctions create a multitude of regulatory hurdles, including the need for enhanced due diligence. Companies must ensure that they are not inadvertently dealing with sanctioned entities or individuals, a challenge compounded by complex global networks of
suppliers, subsidiaries, and thirdparty contractors.
Many sanctions target financial systems, blocking access to global banking networks. This can create significant liquidity problems for companies in the supply chain, especially when banks refuse to process transactions linked to sanctioned entities. In recent years, sanctions on Russia have cut off several of its major banks from the SWIFT system, limiting their ability to transact internationally.
Trade embargoes, shipping restrictions, and airspace closures can bring physical supply chains to a grinding halt. For instance, sanctions against Russia in February 2022 closed European airspace to Russian airlines, complicating the movement of goods between Europe and Asia. Companies had to reroute cargo through longer and more expensive paths, exacerbating existing challenges in global
logistics already strained by the COVID-19 pandemic.
Strategies to Mitigate Sanction Risks
In the GCC, where economies heavily rely on oil exports and imports of technology and consumer goods, sanctions can have profound effects. One of the most effective ways to reduce exposure is by diversifying suppliers and markets. Companies that rely heavily on a single region of the world are particularly vulnerable to sanctions, as a disruption in that region can have widespread effects. By sourcing from multiple areas, companies can minimize risks and ensure continuity of supply, even if one region becomes inaccessible due to sanctions.
Investing in advanced compliance and risk management systems is critical for navigating a sanctionsheavy environment. Automated systems that track regulatory changes, screen for sanctioned entities, and flag potential risks can reduce non-compliance chances. In addition, regular audits of supply chains and continuous engagement with legal and compliance experts can help identify and mitigate risks in real-time.
Furthermore, businesses should review and renegotiate contracts with suppliers and partners to include clauses that address potential disruptions caused by sanctions. Including clauses that address unforeseen disruptions
caused by sanctions can provide an extra layer of protection, allowing companies to terminate agreements without penalties if a partner becomes sanctioned or the business environment changes drastically.
Resilience in supply chains can be built through strategic stockpiling of critical materials, forging stronger relationships with logistics providers, and adopting flexible production techniques that allow for rapid adjustments to shifting trade conditions. Additionally, adopting digital supply chain technologies that offer greater transparency and real-time tracking can help companies better navigate disruptions when they occur.
Preparing for a Sanction-Heavy Future
As the GCC continues to play a significant role in global trade, understanding and managing the impact of sanctions on supply chains is vital. Sanctions will continue to play a prominent role in international politics, and their effects on supply chains will remain a critical concern for businesses worldwide.
By understanding the nature of sanctions, staying compliant with international regulations, and taking proactive measures to diversify and secure supply chains, GCC businesses can better prepare for the uncertainties of the modern geopolitical landscape. In doing so, they can ensure continued growth and stability in an ever-evolving global market.
Finlay Donaldson Associate - Energy & Natural Resources Group, Reed Smith
2025 Trends: Shaping the Future of and
Warehousing Intralogistics
Rami Younes, General Manager of Swisslog Middle East, explores the key drivers and trends poised to shape the warehousing industry in the coming year
The future of warehousing is shaped by technological innovation, evolving consumer demands, and the drive for operational excellence.
In the Middle East, governments are positioning the region as a global logistics hub, with Saudi Arabia committing over USD 267 billion to its logistics sector by 2030.
As we enter the new year, organisations are overcoming automation barriers, increasing investments in proven technologies, and unlocking new efficiencies through orchestration and artificial intelligence.
These advancements are transforming the logistics landscape, setting the stage for groundbreaking changes. The key trends expected to redefine the sector in the year ahead are now in motion.
AI in the Warehouse
AI will be pivotal to future warehouse technology, driving efficiency, optimisation, and intelligent decision-making. AI-powered systems will enable accurate demand forecasting, predictive maintenance, realtime inventory management, and seamless integration with warehouse automation
solutions. These insights streamline order fulfilment, optimise material flow, and boost overall supply chain performance, enabling warehouses to meet increasing demands with precision.
The synergy between AI, robotics, and automation further strengthens decisionmaking capabilities, allowing real-time adjustments to changing conditions or unforeseen events. These adaptive systems learn and refine their processes, ensuring operations remain agile and responsive in a dynamic industry. The future warehouse will rely heavily on AI to optimise intralogistics, enabling businesses to achieve unprecedented levels of productivity and flexibility.
and visibility into asset locations, inventory levels, and process bottlenecks will facilitate proactive decision-making and expedite problem resolution, driving continuous improvement across the entire supply chain.
Big Data for Competitive Advantage
Sophisticated Warehouse Management Systems (WMS) and data analytics tools will provide realtime insights into inventory levels, order patterns, and operational bottlenecks. By leveraging machine learning, AI, and advanced algorithms, these datadriven solutions can identify patterns, accurately predict demand, optimise resource allocation, and streamline processes for maximum efficiency.
Moreover, predictive maintenance capabilities enabled by data analytics will minimise equipment downtime, further enhancing operational efficiency and reducing costly disruptions. Real-time tracking
Data-driven warehouse software will also enable advanced capabilities like digital twin simulations, allowing businesses to virtually model and test various scenarios before implementing changes. This data-driven approach ensures well-informed decision-making and maximised warehouse performance.
Uptake Robotic Revolution
Robots are taking on tasks such as picking, packing and maintenance. Recent reports suggest that by 2025, autonomous robots may be responsible for processing up to 50% of e-commerce orders, highlighting the growing inclination among forwardthinking companies to leverage automation for
process optimisation and efficiency improvements.
In the Middle East, the deployment of automation technologies, such as robotic storage systems and autonomous mobile robots, has brought about remarkable advancements in warehouse operations. These innovations empower businesses to enhance their capabilities in order fulfilment, reduce errors, and meet the ever-evolving demands of customers.
By 2025, advancements in Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs), and Automated Storage and Retrieval Systems (AS/RS) will transform dynamic warehouse operations. AS/RS technologies will revolutionise inventory management, automating storage and retrieval, maximising floor space by up to 85%, and driving ROI in sectors like grocery retail.
Nearshoring
After years of industry focus on automating each picking to support growing e-commerce and omnichannel distribution, pallet handling systems are back in the spotlight. That’s partly due to the continued momentum around reshoring, in which manufacturers are re-centering their supply chain to improve resiliency. This is driving the development of high-bay warehouses that support the distribution of
palletised products and that will result in increased investment in pallet handling technologies, particularly crane-based Automated Storage & Retrieval Systems (ASRS).
Solutions based on technologies like the Swisslog Vectura crane maximise space utilisation in high-bay warehouses and deliver proven reliability over decades of service. Supply chains already dependent on crane-based ASRS will extend the value of these solutions by investing in lifecycle services that ensure reliability and enable adaptability.
Sustainability at the Forefront
The Middle East is seeing an increased demand for ecofriendly logistics, aligned with KSA’s Vision 2030 and UAE’s NetZero initiatives aimed at reducing carbon emissions.
Sustainability tends to be a core principle within emerging economies.
As the Middle East embraces clean energy technologies, automation plays a vital role in reducing energy consumption. For instance, high bay warehouse pallet stacker cranes harness regenerative power and braking modules, resulting in energy efficiency and reduced reliance on non-
renewable energy sources.
Electric automation technologies, like robotics, are energy-efficient, using as little as 0.1 kW per hour, and can be powered by renewable sources. Swisslog has set a precedent by implementing the first 100% solar-powered warehouse automation system, showcasing the potential for these systems to run on on-site renewable energy.
Embracing trends like advanced automation, AI, data-driven insights, micro-fulfilment centres, and autonomous robots enables businesses to future-proof operations and gain a competitive edge. Intralogistics is evolving rapidly, and companies that adapt to these trends will thrive in an era of futuristic, highly optimised warehouses.
SaudiArabia’s LogisticsAscent
The Kingdom is transforming into the Middle East’s logistics powerhouse, blending strategic location, bold investments, and industry giants like Agility and DHL to redefine global supply chains
Words by: Vibha Mehta
Sudi Arabia (KSA) is on the cusp of a transformative evolution, poised to become the premier logistics hub in the Middle East. With its strategic location, ambitious investments, and groundbreaking initiatives, the Kingdom is redefining the logistics and supply chain landscape in the region. Spearheaded by key players such as Agility, SAL Logistics, DSV, DP World, FedEx, DHL, and other major cargo firms, KSA is leveraging its resources, infrastructure, and vision to cement its status as a global logistics powerhouse.
Strategic Location: A Gateway to the World KSA’s geographical advantage is a cornerstone of its logistics ambitions. Nestled at the crossroads of three continents — Asia, Europe, and Africa — the Kingdom is uniquely positioned to serve as a global trade corridor. With 13 ports along its extensive coastline, including major facilities in Jeddah and Dammam, KSA is primed to facilitate the seamless movement of goods across the globe. The government’s focus on modernizing these ports has already begun to yield results, with increased cargo throughput and reduced turnaround times. This strategic positioning not only benefits regional trade but also connects Saudi Arabia to emerging global markets.
Vision 2030: A Blueprint for Logistics Excellence
Central to KSA’s logistics transformation is the Vision 2030 initiative, an ambitious roadmap to diversify the economy and reduce reliance on oil revenues. The National Transport and Logistics Strategy (NTLS), a critical component of Vision 2030, aims to position
Saudi Arabia among the top 10 global logistics hubs by 2030. This strategy focuses on enhancing infrastructure, streamlining regulations, and integrating advanced technologies to drive efficiency and innovation in logistics operations.
Key objectives include:
• Increasing the capacity of air cargo to over 4.5 million tons annually.
• Expanding the network of ports to handle more than 40 million containers per year.
• Establishing over 59 logistics zones nationwide to support businesses and facilitate trade.
• Creating robust connections to neighboring countries to boost intra-regional trade and global competitiveness.
Global Players Shaping the Future
One of the major contributors to Saudi Arabia’s logistics revolution is Agility, a global leader in supply chain services. Agility has invested heavily in stateof-the-art logistics facilities across the Kingdom,
offering advanced warehousing, freight forwarding, and last-mile delivery solutions. The company’s focus on digital transformation has brought cutting-edge technologies like AI-driven supply chain optimization and IoT-enabled tracking systems to KSA’s logistics sector, enhancing operational efficiency and customer satisfaction.
Saudi Arabia’s logistics processes and making them globally competitive.
FedEx and DHL have also established themselves as critical players in the region. DHL is spearheading green logistics initiatives, deploying electric vehicles for last-mile delivery, and integrating carbon-neutral shipping solutions. Meanwhile,
DSV, another global logistics giant, has expanded its footprint in Saudi Arabia, integrating innovative solutions to optimize freight forwarding and warehousing. With their expertise in sustainability and technology-driven logistics, DSV is contributing to streamlining
FedEx is focused on enhancing express transportation services to meet the growing demands of e-commerce and international trade.
Air Cargo Expansion
SAL Logistics, the Kingdom’s leading air cargo operator,
is playing a pivotal role in transforming KSA into a regional logistics hub. With a focus on expanding air freight capabilities, SAL is aligning its operations with Vision 2030 to support the growing demand for swift and efficient cargo movement. The company operates world-class facilities at major airports, including King Khalid International Airport in Riyadh and King Abdulaziz International Airport in Jeddah.
Other operators, such as Saudi Airlines Cargo, are also contributing significantly, offering extensive international cargo routes and advanced freight solutions to bolster the Kingdom’s air logistics network. SAL’s recent initiatives include the implementation of automated cargo handling systems and the development of temperature-controlled warehouses to support the growing demand for pharmaceutical and perishable goods logistics. By investing in innovation and infrastructure, SAL is ensuring that KSA’s air cargo sector remains competitive on a global scale.
Transforming Land and Sea Logistics
While air cargo is a significant focus, KSA is also making strides in land and sea logistics. The Kingdom’s extensive highway
network, spanning over 80,000 kilometers, is being upgraded to facilitate faster and safer cargo movement. Additionally, the Saudi Landbridge project, a railway initiative connecting the eastern and western coasts, will revolutionize freight transportation by significantly reducing transit times.
On the maritime front, KSA’s ports are undergoing substantial upgrades to accommodate mega-vessels and increase container handling capacity. The expansion of the Jeddah Islamic Port and King Abdullah Port has positioned them as key players in global maritime trade. DP World, a global leader in port operations, has been instrumental in driving these upgrades, ensuring seamless port operations and logistics management. These developments are complemented by the establishment of free zones, such as the Red Sea Gateway Terminal, which offers tax incentives and streamlined customs processes to attract international businesses.
Technological Advancements: The Future of Logistics
KSA’s logistics sector is embracing technological advancements to drive efficiency and innovation. Blockchain technology is being implemented to enhance transparency and traceability in supply chains, while autonomous vehicles and drones are being trialed for last-mile delivery solutions. AI-powered analytics are optimizing route planning and
inventory management, reducing costs and improving service quality.
The Kingdom’s commitment to sustainability is also evident in its logistics initiatives. Electric vehicles, green warehouses, and renewable energy-powered facilities are being integrated into the logistics ecosystem to minimize environmental impact.
Agility, SAL, DHL, and FedEx have all embraced these technologies, integrating them into their daily operations to improve efficiency and ensure sustainability. Their efforts align with the Kingdom’s broader goals of achieving environmental stewardship and economic growth.
Global Partnerships and Investments
KSA’s logistics ambitions have attracted significant interest from global investors and partners. Companies like DP World, Maersk, and CMA CGM are collaborating with local stakeholders to enhance infrastructure and expand trade networks. The Public Investment Fund (PIF) is also playing a critical role by financing mega-projects such as NEOM’s Oxagon, which is set to become a futuristic logistics hub. These partnerships are fostering innovation and bringing global expertise to Saudi Arabia, positioning the Kingdom as a logistics gateway for the wider Middle East, Africa, and Asia. By leveraging these collaborations, KSA is rapidly scaling its logistics
capacity to meet the growing demands of global trade.
Challenges and Opportunities
While the progress is remarkable, challenges remain. The sector needs to address skill gaps, streamline regulatory processes, and ensure seamless coordination among various stakeholders. However, these challenges also present opportunities for innovation and collaboration, which can further strengthen KSA’s position as a logistics hub.
The growing e-commerce market in the region, expected to exceed USD 50 billion by 2025, presents a significant opportunity for logistics providers. Companies like Noon and Amazon are expanding their operations in KSA, relying on the evolving logistics infrastructure to meet consumer demands for faster and more reliable deliveries.
A Bright Future Ahead
With its strategic vision, robust investments, and collaboration with leading logistics players, Saudi Arabia is well on its way to becoming the Middle East’s logistics epicenter. The Kingdom’s efforts to integrate advanced technologies, enhance infrastructure, and promote sustainability are setting new standards for the industry. As Agility, SAL Logistics, DSV, DP World, FedEx, DHL, and other key players continue to reshape the landscape, KSA is poised to redefine logistics in the region and beyond.
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A Marvelous Roadmap
Christopher (Chris) Cahill, Managing Director of the Middle East and India Subcontinent at GEODIS, highlights the various remarkable innovative approaches in the company
Christopher (Chris) Cahill Managing Director of the Middle East and India Subcontinent, GEODIS
GEODIS is a leading worldwide provider of customised transportation, warehousing, global logistics, and supply chain solutions. As an active partner in its clients’ growth, the company focuses on four core business lines: freight forwarding, contract logistics, distribution & express deliveries, and road transport.
With a global network spanning nearly 170 countries and 53,000 employees, GEODIS is ranked no. 5 in its sector across the world. In 2023, GEODIS generated EUR 11.6 billion in revenue. GEODIS, a company owned by SNCF group, is an international full-service logistics company with French roots, its head office is located in Levallois, France.
Roadmap for Innovation
GEODIS’ strategy is designed to strengthen its position as a leader in sustainable and innovative end-to-end logistics solutions to help its customers succeed and grow around the world. GEODIS’s capacity for innovation is a key differentiator, a means of creating value for its customers and a major lever for growth and performance. The company focuses on three main areas of innovation:
• Digital technology, at all stages of the Group’s processes, from customer relations to delivery.
• Robotics, a powerful lever for operational performance and making tasks less arduous.
• Decarbonisation.
In addition, GEODIS leverages AI and machine learning to optimise routes, improve delivery accuracy, and manage inventory more effectively. IoT technologies provide real-time tracking of shipments and assets (e.g. drivers and trucks), ensuring timely and secure deliveries. The business also launched its very own Geodis GPT to support and enable their employees to work more efficiently, while keeping their data and environment secure.
By continuously investing in these technologies and fostering a culture of innovation, GEODIS aims to stay at the forefront of the logistics industry, offering cutting-edge solutions that meet the evolving needs of its clients.
Automation & Robotics
Moreover, GEODIS adopts and integrates advanced automation and robotics solutions
through deploying automated guided vehicles (AGVs) and robotic arms in warehouses to streamline picking, packing, and sorting operations, minimising errors, and increasing throughput.
GEODIS also employs Warehouse Management Systems (WMS) that leverage robotics for realtime inventory tracking and management, providing end-toend visibility and control over stock levels.
Automation extends to transportation logistics, where GEODIS uses automated systems for route optimisation and load planning, ensuring the most efficient use of resources and timely deliveries.
Robotic Process Automation (RPA) streamlines processes and automated data capture and processing tools improve
the accuracy and speed of information flow across the supply chain.
In response to the growth of e-commerce, GEODIS aims to offer customers the same personalized experience online and in-store. Smart robots are improving the quality and speed of operations. Data management solutions combined with artificial intelligence (AI) systems increase operational efficiency and accuracy of forecasting.
With approximately 80 highly automated sites around the world, GEODIS is one of the leaders in integrating the latest generations of robots within warehouses.
A key challenge in implementing new technologies, however, is change management. Effective
change management should be integrated from the project’s inception, ensuring a smoother transition and greater adoption of new technologies. Security and availability of skilled personnel are also key considerations in implementing or scaling technology solutions.
Digital Tools & Platforms
In freight forwarding, GEODIS has invested in a state-of-the-art freight management application, IRIS (Intelligent Real-time Information System), that allows its customers to manage their supply chain activities and track their cargo in real-time. IRIS uses AI technology for swift and secure connections to all data sources, delivering reliable and real-time information which is unique in the market. It offers seamless integration of online pricing, booking, track & trace, documentation, reporting, invoicing as well as carbon offsetting and emissions reporting capabilities.
Additionally, GEODIS is investing in Warehouse 4.0, featuring auto store, end-to-end visibility with real time inventory tracking, full integration with IoT, AMRs and AGVs and leveraging ML and AI smart analytics for better productivity and continuous improvements.
Reducing Carbon Footprint
The company is recognised by CDP at “Leadership” level with an “A-“ score for its commitment to the climate. GEODIS has made decarbonisation a driving force
for its transformation and has pledged to reduce its scope 1 and 2 greenhouse gas (GHG) emissions by 42% and the carbon intensity of subcontracted transport (scope 3) by 30% by 2030 compared to 2022.
To achieve these goals, GEODIS has implemented several sustainable logistics innovations. These include the adoption of Sustainable Aviation and Marine Fuel, and the latest fleet technologies in the Middle East to reduce fine particle emissions by 16%.
Additionally, as a pioneer in multimodal transportation, GEODIS combines multimodal air, road, rail, and sea transport, to reduce reliance on more carbon-intensive modes like solely using air freight, e.g. GEODIS’ Sea-Air freight solution via UAE to Europe and America helps their customers optimise costs, enhance speed to market and minimise the carbon footprint of their shipments.
The company also offers an emissions calculator allowing customers to calculate Greenhouse Gases (GHG’s) and air pollutants emissions of their freight.
Eco-friendly warehousing technologies, such as energy-efficient lighting, solar panels, and optimised heating and cooling systems, further minimise
energy consumption. These innovations, including route optimisation, supply chain visibility tools and sustainable packaging solutions, have led to more efficient and environmentally friendly logistics operations.
The Steps Ahead
GEODIS is optimistic about the Middle East’s transport and logistics industry driven by its strategic location as a global hub for cross-continent trade.
A key focus for the Middle East region is the energy sector where the company customises and implements end-to-end project logistics for the handling of complex, oversized and extra-heavy cargo. Significant efforts are invested in compliance measures to ensure a zero-harm environment for these projects.
To support its customers in the high-tech sector, the company is boosting security with initiatives like TAPA FSR A certification for its warehousing facilities and geofencing its road network. The healthcare sector is a key organisational vertical, with significant investments made to strengthen its air freight temperature-controlled shipment capabilities. Its Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification in the UAE underscores GEOODIS commitment to excellence in this sector. In line with its commitment to innovation and sustainability, GEODIS will continue to invest in its digital transformation and technologies and practices to reduce its carbon footprint.
Axel Herzhauser, Global Managing Director at WeFreight
Emerging Markets, Evolving Logistics
Axel Herzhauser, Global Managing Director, WeFreight, discusses the freight forwarding market in the region, focusing on what distinguishes the company from its counterparts
WeFreight is a relatively young and growing company that focuses on connecting emerging markets to the global logistics network. As the logistics industry continues to expand, the demand for efficient, reliable, cost-effective and innovative solutions is more pronounced than ever. We recognise the significance of emerging markets, which are becoming increasingly important in the global trade landscape. These markets are not only growing in terms of economic power but also in their share of global trade, creating opportunities for businesses to tap into new markets.
WeFreight provides tailored services that meet the unique needs of companies involved in these regions.
The company’s ambition is rooted in its commitment to supporting customers and becoming trusted partners in their success. We strive to offer innovative logistics solutions that enable businesses to navigate the complexities of emerging markets.
The Middle Eastern Scene
The freight forwarding market is highly competitive, with numerous providers competing for market share. Despite the intense competition, the market is large enough for everyone to participate and grow, as global trade continues to expand. The freight forwarding market is projected to grow by approximately 4% annually until 2029, presenting significant opportunities for businesses.
Every freight forwarder has its own unique value proposition. Wefreight distinguishes itself by focusing on connecting emerging markets and offering flexible, customer-centric solutions.
New Opportunities
The logistics markets in the Middle East have been primarily driven by key sectors such as oil and gas, and petrochemicals. Increasingly, there is a focus on diversification and boosting the contribution of the non-oil economy. This shift has created new opportunities for freight forwarders, who must adapt to the evolving landscape.
New verticals such as retail, cold chain, automotive, and manufacturing are growing, each requiring specialised expertise to meet their unique supply chain needs. Freight forwarders are developing tailored solutions to address the specific requirements of these diverse industries, as adapting to these changes is essential for success in an evolving market.
Attracting Top Talents
The region has a well-developed logistics infrastructure, but the market is highly competitive,
with numerous players. As a service provider, our success relies on people, and attracting top talent is key to that success. However, all freight forwarders are after the same pool of skilled professionals, making it increasingly challenging to hire the best talent.
At Wefreight, we take pride in fostering an excellent work environment where employees thrive, making us one of the top choices for talent in the industry. In 2023, we were certified as a Great Place to Work in four countries: India, UAE, Saudi Arabia, and Türkiye. This recognition is a testament to the company’s commitment to creating a positive and inclusive work environment for all employees.
The Future Ahead
The freight forwarding industry is undergoing a significant transformation. Digitisation is reshaping how the industry plans, operates, and is managed, with technology driving greater efficiency, transparency, and flexibility. At the same time, geopolitical uncertainties are challenging supply chains, pushing companies to rethink traditional strategies and diversify their approaches. Inflation is also prompting businesses to seek greater efficiencies to maintain profitability.
To navigate these challenges, the industry is embracing innovation and diversification. The key to success lies in adopting diverse strategies, technologies, and partnerships, while staying agile and forward-thinking. EMERGING
TheAcme Automation of
Navin Narayan, CEO of Acme, reflects on the company’s journey towards becoming a leader in the logistics industry, with a particular focus on its cutting-edge automation solutions
Major Milestones
Acme has established itself as a leader in the automation and intralogistics sector. The biggest milestone that set this development in motion was establishing the company’s manufacturing and R&D facility in Jebel Ali in 2019. This strategic move enabled the development and delivery of customised automation solutions to meet the specific needs of customers in the region.
Since then, Acme expanded its operations, both domestically and internationally, with offices in Saudi Arabia, India, and Colombia. It also strengthened its other verticals such as software solutions, maintenance services, and advanced robotics. Overall, its team strength has grown from 60 in 2019 to over 220 employees today.
The company’s participation in the Industry 4.0 Forge Program, aiming to propel innovation, efficiency, and global competitiveness in the UAE’s manufacturing sector, is another major milestone. This collaborative initiative between the Ministry of Industry & Advanced Technology (MoIAT), du, and the Emirates Development Bank (EDB) aligns perfectly with its vision of driving innovation and transformation. As the first
Navin Narayan, CEO of Acme
SME enrolled in the program, Acme is honoured and excited to contribute to the UAE’s industrial growth.
A Unique Player
Acme differentiates itself through a combination of factors. Being the only solution provider with inhouse manufacturing capabilities in the Middle East allows it to offer highly customised solutions. This, coupled with the company’s strong engineering expertise, in-house software development capabilities, and a deep understanding of local and regional market dynamics, sets it apart.
Moreover, Acme’s commitment to quality, reliability, and after-sales support has earned it a strong reputation in the industry. The company is not just providing solutions; it is building long-lasting partnerships with its customers.
Challenges in the Region
Balancing costeffectiveness and high service levels has become a constant challenge in today’s competitive logistics landscape. At the same time, the logistics industry has undergone a dramatic transformation over the years, driven primarily by technological advancements. While the core principles of logistics – transportation, storage, and distribution – remain constant, the tools and strategies used to achieve these goals have evolved significantly.
Warehouse automation solutions, like the ones Acme provides, have become indispensable in optimising operations, improving efficiency, and reducing costs to remain competitive.
The company supports its customers in navigating these changes by finding the best suited advancement for their individual business size and operational process. The aim is to leverage technology to create more connected, efficient, and sustainable supply chains – which can happen gradually with scalable solutions.
Upcoming Trends
One significant trend, AI, has already been revolutionising the logistics industry for a while. Its capabilities however have advanced significantly.
Acme continuously improves its systems and software to help its customers leverage the huge
potential in using technology to automate tasks, improve efficiency, and enhance decisionmaking in logistics operations. The company’s software offers advanced AI-powered predictive analytics to forecast demands
more accurately, optimise inventory levels, and identify potential disruptions in the supply chain. Additionally, its robotic solutions, such as AGVs and robotic arms, are streamlining material handling
processes and improving productivity.
Sustainability is another key trend shaping the industry. Through innovative automation solutions, businesses can significantly reduce their environmental impact. The company’s solutions can lead to 20-30% reduction in energy consumption, minimised waste, improved resource efficiency and reduced resource consumption. Additionally, automation can enhance traceability and transparency throughout the supply chain, enabling better decisionmaking and waste reduction.
Growth Plans
Acme’s focus for the next few years is clear: innovation, expansion, and customer satisfaction. It is committed to pushing the boundaries of automation technology, especially in areas like robotics and AI.
The goal is to empower businesses across various industries to optimise their operations and achieve sustainable growth. To democratise automation, the business is developing modular solutions that are both flexible and affordable. Specific solutions for smaller businesses and the growing number of start-ups will help make automation more accessible.
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Awakening the Waves: The Rise of Seagliders
Shadi El Abdallah, Managing Director - Middle East, REGENT, reveals the transformative potential of the company’s Viceroy seagliders and how they are set to revolutionise the transportation and logistics sphere
Could you tell us more about REGENT’s seagliders.
REGENT (Regional Electric Ground Effect Nautical Transport) is developing and manufacturing seagliders to revolutionize regional maritime transportation. Seagliders
are novel high-speed, allelectric maritime vessels that will drastically reduce the time and cost of transporting passengers and goods between coastal destinations.
How will these seagliders revolutionise the logistics and transportation landscape?
The Viceroy seaglider, which can carry 12 passengers or 1,600 kg of payload, will fly over open water at speeds up to 300 kph for routes up to 300 km on a cushion of air using a phenomenon called “ground effect,” always flying within one wingspan of the water’s surface. Increased efficiencies and lower operating costs make seagliders an ideal transportation solution for a range of use cases, from passenger travel and cargo transport to offshore energy logistics.
What challenges have you faced in scaling up seaglider deployment for logistics purposes, and how are these being addressed?
We are currently developing our first full-scale Viceroy seaglider prototype after proving the technology with our quarter-scale prototype. We are focused on ensuring the highest levels of safety and quality as we prepare for sea trials of the full-scale prototype and the entry into service of our first Viceroy seagliders.
How is the market response so far?
REGENT has already secured more than 600
AWAKENING
Shadi El Abdallah, Managing Director –Middle East
seaglider orders valued at more than USD 9 billion from leading aviation and ferry operators around the world with multiple orders from the Middle East.
What key technologies enable the seagliders’ operational efficiency and reliability?
Seagliders leverage modern maritime technologies like carbon fiber composites, cutting-edge hydrofoils, and advanced vehicle controls. The unique design and functionality of seagliders enable them to be the first type of vessel to make ground-effect transportation and logistics an efficient, affordable, comfortable reality.
How do seagliders contribute to reducing carbon emissions?
Seagliders are all-electric, zeroemission vehicles. If they were to replace other forms of transportation that service regional coastal routes, that would result in a removal of up to 110 megatons of CO2 globally per year, which is equivalent to removing about 26 million cars from the road every year.
What advancements can we expect in seaglider technology that will further optimise their use in logistics?
Future advances in seaglider technology will continue to increase
efficiencies for logistics. The Viceroy seaglider will be our first model to enter into service, followed by the Monarch seaglider, which will carry up to 50-100 passengers or 10,000 kg of payload and have a range of up to 650 km, which can play a key role in middlemile logistics.
What is REGENT’s long-term vision for integrating seagliders into global logistics networks?
Seagliders can play a key role in augmenting existing logistics networks, offering a low-cost, high-speed, sustainable solution. We look forward to working with our existing customers and partners to realise the benefits seagliders can bring to the industry.
AWAKENING THE WAVES: THE RISE OF SEAGLIDERS
The Sky Is Not theLimit
Will drones be delivering our packages by 2025?
Words by: Aya Zhang
We live in an exciting era where the thought of drone deliveries are not a mere notion but an actual possibility. Receiving our packages through a flying drone does not look like a scene from a science fiction film anymore, rather, it is right in front of our eyes. The surge in e-commerce is driving companies to create innovations for faster deliveries in order to achieve a higher level of customer satisfaction. According to Statista, the global e-commerce market revenue is projected to reach USD 4,117 billion in 2024. This is also estimated to increase by an annual growth rate (CAGR 2024-2029) of 9.49%, leading to a projected market volume of USD 6,478 billion by 2029. Thus, to make the process more seamless, drone technologies are emerging as a game changer in the logistics scene.
A New Concept
Drone delivery systems are built on a foundation of sophisticated technologies - autonomous flying vehicles, GPS systems, and artificial intelligence (AI) - that work together to ensure precise and safe deliveries. Unlike traditional delivery methods, drones can fly over traffic, reduce delivery times, and access hard-to-reach areas. Companies like Amazon, UPS, and startups such as Wing are already investing heavily in drone delivery trials and are working to bring this technology to scale.
Real-World Testing and Success Stories
Several companies have begun testing drone deliveries with promising results. For instance, Amazon recently completed its first drone test flight in Italy using the MK30 drone, capable of carrying up to five pounds (2.27 kg) through light rain. The country is set to be the first European country where the e-commerce giant plans to launch the service. The drone is also licensed in the U.S. to operate Beyond Visual Line of Sight (BVLOS).
Previously, Amazon had plans to operate drone deliveries in Italy and the UK by the end of 2024, with the goal of launching Prime Air commercially in Italy
by 2025, pending regulatory approval.
According to Reuters, the UK has selected six drone testing projects, including Amazon’s, but testing dates have not yet been confirmed. In the U.S., Amazon’s drone delivery service is already operational in College Station, Texas, and Phoenix, Arizona, with plans to expand to more locations in 2025.
Are There Challenges?
While the concept of drone delivery is tantalizing, several hurdles remain before widespread adoption. First, there’s the issue of airspace regulation. Governments and aviation authorities are still working on establishing the legal frameworks for commercial drone operations, ensuring they can safely coexist with manned aircraft in shared airspace. Countries like the US, the UK, and Australia are already in the process of developing policies for drone integration, but it’s a complex challenge that requires careful coordination.
Safety concerns also pose a significant barrier. For drones to operate at scale, they need to be able to avoid obstacles, deal with inclement weather, and ensure that
packages are delivered without risk to people or property. Additionally, there are privacy concerns related to drones flying over residential areas, which could raise alarms for both regulators and consumers.
Infrastructure is another consideration. Drones will need specialised landing pads, charging stations, and tracking systems to ensure that deliveries are made efficiently. In urban areas, where drone traffic could become dense, smart air traffic management systems will need to be put in place to coordinate flight paths and avoid collisions.
The Future of Drone Deliveries
Despite these challenges, the promise of drone deliveries is undeniable. As technology improves, regulatory frameworks evolve, and infrastructure adapts, drones have the potential to revolutionise the logistics industry. In the near future, we might see drones delivering everything from everyday parcels to emergency medical supplies, taking a significant load off traditional delivery vehicles and helping speed up services for consumers.
Turmoil on the Red Sea
How Global Shipping Disruptions Could Cripple Your Christmas
The Red Sea shipping crisis has hit headlines again recently, following a series of Houthi attacks on the 163,759-deadweight tonnage M/V Sounion tanker.
Occurring late in the summer, the attack and subsequent disruption of shipping operations in the Red Sea have the potential to cause significant global economic impact, especially as retailers ramp up for the Christmas season.
How Has the Red Sea Crisis Already Affected Shipping
There are 21,344 estimated ships crossing the Red Sea during 2023. This works out at around 59 ships using the shipping route each day, with these making up 12% of global trade throughout that year.
However, defence and security think tank the Royal United Services Institute reports that only 905 cargocarrying vessels sailed in the Red Sea in July 2024 – which is about 30 ships per day.
This is just one startling fact about the impact that the Red Sea tensions has had on the shipping industry. Integrated container logistics and supply chain services
specialist Maersk has stated that the crisis has resulted in the following challenges:
• Cargo travel distances have increased by an average of 9% due to vessels traveling around Africa via the Cape of Good Hope to avoid the Red Sea route. This detour has led to longer transit times and a higher number of ships needed to transport the same amount of cargo.
• Due to increased transit times and additional ships being needed, this has also caused the number of vessels being available to transport cargo to reduce considerably. In fact, Maersk estimates that available capacity had decreased by between 15% and 20% during the second quarter of 2024 alone.
• Another knock-on effect of ships taking a longer route to avoid the Red Sea route is that both
Originally written by Andrew Thompson, CEO, Cleveland Group. Edited by Aya Zhang.
carriers and businesses are subjected to increased costs. These costs are to cover the additional time, fuel and resources required to complete an extended journey.
The Insights Unit of the British Chambers of Commerce has
also shed light on how the Red Sea disruption has impacted businesses across the UK.
According to their research, over 55% of UK exporters believe they’d been impacted by the crisis. More than 53 per cent of business-to-consumer service firms and manufacturers felt the same way.
Firms surveyed pointed out that they’ve noticed increased costs – some have seen rises of 300 per cent for container hire, for example – as well as logistical delays, whereby up to three or four weeks have been added to delivery times.
Andrew Thompson is the Chief Executive Officer of the Cleveland Group. The Group consists of Cleveland Hire, Cleveland Modular and Cleveland Containers, the latter of which offers the widest selection of containers in the UK, including 20ft containers. He commented on the disruption experienced earlier this year by saying: “It’s difficult to ignore the ongoing impact of the Red Sea crisis on our shipping operations.
“In response to these terrible ongoing attacks, shipping lines are understandably acting on their heightened security concerns and are continuing to reroute as a precautionary measure. We are anticipating a 2-3 week delay in container deliveries into the UK, which creates a knock-on effect for our customers.”
THE RED SEA CRISIS
Andrew Thompson, CEO, Cleveland Group
Ways that retailers can reduce delays in the lead up to Christmas Insights by INVERTO, which is the specialist supply chain management arm of the Boston Consulting Group, has suggested that retailers across the UK have already had to alter their procurement strategies significantly in the lead up to the Christmas trading period.
INVERTO’s Principal Patrick Lepperhoff commented: “The prolonged impact of Red Sea disruptions is having knockon effects across supply chains. Usually, the summer is a quiet time for shipping and warehousing. However, at present, the shipping industry is remarkably busy, as the complex process of getting shops stocked for the key Christmas period is moved forward by two months.
“This has put pressure on the retailers themselves as they take in more stock early, for which they
may not have warehouse space. Instead, retailers will need to seek short-term storage back-up space, which can be very costly.”
Block-space agreements, whereby retailers and carriers can negotiate a price for a fixed weight or volume of cargo in the future, has been recommended by INVERTO to ensure retailers have absolute clarity on available stock and upfront costs.
The company also advises retailers to:
1. Set up a logistics taskforce,
which will work to monitor freight rates and lead times with the aim of optimising costs.
2. Look into AI solutions, which can analyse real-time rate fluctuations and conditions to identify optimal shipping routes.
3. Strike up stronger relationships between suppliers and procurement, with the aim of looking into options for nearshoring so that supply chains become more resilient to risks in the future.
Maersk has echoed these recommendations, stating that businesses should invest more in data analytics and build solid partnerships in the supply chain sphere when learning from the Red Sea disruption.
They also advise retailers to look into supply chain diversification, as a business having numerous material suppliers covering various regions can help them to reduce the impact felt on any supply chain disruptions.
The Tech Driven Future of
Supply Chain
Alain
Kaddoum, Managing
Director of Savoye
Middle East unveils the company’s groundbreaking innovations when it comes to technology, automation, robotics and AI
The logistics and supply chain industry has made significant progress in terms of technological adoption this year. It is not driven by a single technology or innovation, but by the interaction of multiple technologies and the entire ecosystem. Software solutions integrated with other advanced robotic systems or management systems, are examples of how technology in this sector works in tandem.
Moreover, businesses are experiencing significant improvements in order fulfilment and customer satisfaction, especially with the integration of
automation, artificial intelligence (AI), and robotics into software systems and supply chain operations.
This progress is fuelled by growing consumer demand for goods, which has created an increasing need for fulfilment centres across the UAE and the Middle East. These centres rely on advanced systems to manage
the high volume of daily orders, a challenge effectively addressed by cutting-edge software technology working in synergy with other innovations.
Notably, the supply chain management software market in the UAE is anticipated to grow significantly in following years, with revenues expected to reach USD 54.53 million by end of 2024.
Alain Kaddoum, Managing Director of Savoye Middle East
The market is further anticipated to exhibit an annual growth rate of 5.07%, resulting in a market volume of USD 69.82 million by 2029. Savoye entered the UAE market in 2021,
introducing its superior solutions to the region’s supply chain and logistics sector. A key contribution has been the introduction of the industry-leading ODATiO software, which seamlessly integrated a Warehouse Management System (WMS) and a Transport Management System (TMS). This innovative combination, previously rare in the Middle East, has significantly transformed the sector.
The company has continually evolved ODATiO, enhancing it further this year by integrating an Order Management System
(OMS), making it a comprehensive modular software platform that drives efficiency and automation in the country’s supply chain, logistics and warehouse operations. Savoye also collaborated with InCube to facilitate ODATiO sales in the region and have been seeing continuous growth and progress.
When it comes to robotics, Savoye has expanded its robotics offering by integrating ACR solutions to its automation portfolio and further partnered with new regional customers such as CJ Logistics and New East General Trading, delivering fully integrated and automated warehouse systems with advanced software and robotics solutions. These partnerships and yearly growth resulted in the firm’s expansion into Saudi Arabia, where it has been continuously building partners and providing the kingdom with its advanced suite of solutions.
THE TECH DRIVEN FUTURE OF SUPPLY CHAIN
Furthermore, one of the company’s most exciting new AI initiatives is the Barcode-Free Warehouse, a state-of-theart research and development project. It is currently in its pilot and R&D stages, but Savoye remains committed to fostering innovation and pushing the limits of what is feasible in warehouse management.
The company’s vision here is to create an AI-powered warehouse and eliminate the need for barcodes on items. The idea is to use LiDAR technology, which
is similar to radar, to detect objects as they pass in front of the camera using camera vision. This ensures that all items have been properly placed. By using complex machine learning and image processing algorithms, the system tends to function similarly to the human brain, which is able to recognise colours and shapes automatically. Moreover, the technology also includes 360° cameras that not only identify objects but also verify their placement, thereby streamlining warehouse management for businesses.
Additionally, Savoye leverages AI in robotics. By using machine learning and image processing algorithms, it has enabled robots to identify and handle objects according to their size, shape, and texture. The technology is already incorporated into a number of other offerings, such as the ODATiO platform.
The company also employs AI-powered learning algorithms to support logistics and supply chain managers by enhancing predictability in domains such as labour and inventory
management. In order to test and improve its automated solutions in a virtual setting, Savoye uses AI to create digital twins that replicate actual warehouse operations. These are only a few instances of how AI can guarantee successful results and revolutionise productivity.
Today, AI is crucial for streamlining tasks and improving human productivity. Although AI and robotics are not new concepts, their real-world uses are being explored rapidly today. The real innovation, however, is in
making them more intelligent by enabling them to make choices instead of just repeating actions.
Savoye is at the forefront of transforming the logistics and supply chain industry through its groundbreaking innovations in AI, robotics, and automation. By seamlessly integrating these technologies with cutting-edge
software solutions, Savoye is not only streamlining operations but also driving significant improvements in efficiency and customer satisfaction. As the industry continues to evolve, the company’s commitment to pushing the boundaries of what’s possible positions it as a leader in shaping the future of supply chain management.
A Logistics Vision Brought to Life
CEO
Rita Huang, GM Alex Chen, Co-Founder Naveen Joseph, and Chief Strategy Officer
Amar Rizvi reflect on iMile’s significant strides and achievements in
2024
In the heart of the Middle East’s thriving logistics landscape, iMile stands out as a beacon of innovation, sustainability, and operational excellence. As the e-commerce sector continues its meteoric rise, iMile has proven itself not just as a logistics provider, but as a transformative force reshaping last-mile delivery in the region. With its intelligent blend of technology, sustainability, and an acute understanding of regional dynamics, iMile’s story in 2024 is one of remarkable growth and strategic evolution.
Tech Powered Logistics Pioneer
When iMile first set foot in the competitive world of logistics, the mission was clear: to tackle the complexities of last-mile delivery in the Middle East. By the end of 2024, that vision has blossomed into a fully-fledged operation, powered by cuttingedge technological intelligence. With proprietary algorithms driving its delivery optimisation, iMile is able to reduce operational costs, enhance accuracy, and expedite delivery timelines, especially in regions known for their logistical challenges.
AI has become the cornerstone of iMile’s operations, enabling real-time data-driven decision-making. Whether navigating the bustling streets or reaching remote areas, iMile’s system recalculates delivery routes dynamically, ensuring faster and more efficient deliveries while minimising fuel consumption. “Tech is transforming the logistics sector, not just as an add-on but as an integral part of how we do business,” says CEO Rita Huang.
Strategic Partnerships and Regional Expansion
2024 marked a significant year for iMile in terms of regional partnerships. In Saudi Arabia, the company expanded its footprint with a groundbreaking collaboration with JMC and Al Jabr, two well-
established entities in the Kingdom. This partnership aims to redefine logistics by utilising advanced vehicle technologies to streamline deliveries and enhance operational efficiency. By tackling the unique challenges of last-mile delivery in a vast and diverse market like Saudi Arabia, iMile is helping businesses thrive in one of the Middle East’s largest economies.
In addition to its success in Saudi Arabia, iMile is making significant strides in the UAE with the opening of a new customs clearance facility at the Dubai Airport Freezone (DAFZA) soon. This move allows iMile to bring the entire customs process in-house, expediting clearance times, enhancing shipment visibility, and improving compliance with local regulations. Alex Chen, General Manager of iMile UAE, highlights: “By handling customs
Rita Huang, CEO of iMilie
internally, we offer faster delivery times, greater control, and more transparent operations for our clients.” This strategic shift is expected to further solidify iMile’s leadership in the region, positioning it as a key player in the UAE’s drive towards smart logistics.
The opening of a new state-of-the-art office & RDC in Dubai also underscores iMile’s rapid growth and commitment to fostering innovation within its operations. The new headquarters, designed to accommodate the company’s expanding team, provides a modern and collaborative environment to support continued excellence in logistics while the RDC will support higher business efficiency and growth.
Sustainability: Leading the Charge for a Greener Future
Sustainability has always been central to iMile’s ethos. In 2024, the company ramped up its commitment to the environment by integrating electric vehicles into its delivery fleet. These vehicles not only reduce carbon emissions but also help iMile align with the UAE’s ambitious net-zero goals for 2050. iMile’s eco-friendly initiatives extend beyond its fleet, with the company adopting sustainable
packaging solutions that minimise waste, contributing to a greener future in logistics.
As part of iMile’s green initiative, the company launched a unique program during World Environment Day in 2024, distributing plants with deliveries to raise environmental awareness among customers. This thoughtful gesture not only underlines iMile’s sustainability drive but also connects the company to its customers in meaningful, eco-conscious ways.
“iMile’s dedication to ESG is at the core of our growth strategy. We emphasize sustainability through initiatives like carbon reduction, green energy solutions, and waste reduction. Socially, we focus on promoting employee well-being, fostering inclusivity, and engaging with the community. In terms of governance, we uphold transparency, integrity, and ethical decision-making. These principles are integrated into every aspect of our operations, positioning iMile as a responsible and innovative leader in the logistics industry.” says Naveen Joseph, Co-Founder.
Naveen Joseph, Co-Founder of iMilie
A Smarter Way to Deliver
As consumer expectations for speed and transparency increase, iMile’s technology-driven solutions ensure that it remains ahead of the curve. The company’s automated sorting hubs and IoTenabled tracking systems provide real-time updates on deliveries, offering customers peace of mind, especially when handling sensitive or high-value shipments. This technological infrastructure is particularly important during peak seasons like the holy month of Ramadan and Black Friday, where demand surges and last-mile solutions must be executed flawlessly.
By adopting the latest technology and constantly innovating, iMile continues to set new standards in the logistics sector, ensuring that its customers experience seamless, reliable deliveries every time.
Navigating Regional Complexities: Expertise That Delivers
Navigating the challenges of last-mile delivery in the Middle East requires more than just technological solutions—it demands an understanding of the region’s unique logistics landscape. The company’s deep cultural understanding and flexibility with scheduling ensure that deliveries happen on time, respecting local customs and peak season demands.
iMile’s ability to address regional complexities— whether it’s managing delivery routes in congested cities or accommodating specific cultural preferences—has made it a trusted logistics partner for businesses across the GCC.
Looking Forward: A Bright Future for iMile
As iMile wraps up an impressive year in 2024, the company is poised for even greater success in the years to come. With its continued expansion across the Middle East, along with strategic plans to tap into Africa and Latin America, iMile is laying the groundwork for significant growth in these highpotential regions. Recent funding rounds provide the company with the necessary capital to enhance its customer interface, integrate more smart technologies, and expand its service offerings.
“2024 has been a milestone year for iMile, but this is just the beginning. Our strategic initiatives in the UAE, Saudi Arabia, and soon, other regions like Africa and Latin America, are designed to position us as a global logistics leader,” says Amar Rizvi, Chief Strategy Officer at iMile. “We’re not just expanding our reach geographically but also deepening our technology stack and sustainable practices to ensure our growth aligns with the future needs of the logistics and e-commerce sectors.”
Chief Strategy Officer of iMilie
With its commitment to driving technological innovation, sustainability, and regional expertise, iMile is uniquely positioned to redefine last-mile delivery in the coming years. As the company continues to innovate and lead the way in the logistics space, it’s clear that iMile is not just meeting the needs of today’s e-commerce but also shaping the future of global delivery systems—faster, smarter, and greener.
Amar Rizvi,
