We are living in both an exciting and tumultuous time; buyers worldwide call for Shipping companies in UAE to adopt leaner and faster supply chains for delivering the goods or products almost immediately. Organizations are now calling for more skillful professionals to manage the growing complexity of supply chains. Several key factors will drive the growth of Logistics companies in the UAE.

  • Technology

The logistics companies in UAE will benefit from technological advancements that improve efficiency, speed, and visibility. Two significant disruptors of the 2021 shipping landscape are autonomous vehicles and Blockchain.

Initially made for cryptocurrencies, Blockchain also benefits logistics and shipping companies in Dubai. This complex computing nodes framework speeds up supply chains by transferring titles and records via layers of the supply chain in real-time.
Blockchain provides transparency for consumers and auditors and more enhanced security for all parties involved.

  • Global markets

Global market growth depends on the growing demand for traded goods along with infrastructure development. Popular commodities that logistics companies in Dubai will expect to move in 2021 include machinery, vehicles, and pharmaceuticals. Local carriers should expect more mixed loads as companies are increasing the use of cross-docks and local ful fillment centers to service just-in-time deliveries.

  • Containerisation

The cost of ocean shipping has dropped because of containerization, bulk shipping, and other efficiencies. The lower unit cost of transporting products globally helps bring prices in the country of manufacture closer to those in export markets and makes the market more contestable globally.

  • Customer demands

Ecommerce sales are gaining traction in all retail verticals. From banking to clothing to health care, companies are required to reach their end-users on an all-digital platform. However, customers do not want to abandon the brick-and-mortar tradition.

More shippers will work with 3PL companies to improve agility, expand geographic access, improve visibility, and add technology. These partnerships also help to mitigate risks for shippers in volatile economic environments.

  • Air and ocean markets
Last year was tumultuous in the ocean freighting. Recent bankruptcies and excess capacities led to the steamship and plummeted lines to keep containers idle. However, more than 90% of internationally traded goods move on ocean vessels.

The ocean market is experiencing a recovery since 2017. Recent consolidations will improve capacity and drive up rates at a moderate pace. Both air and ocean carriers are now limiting contractual space and increasing volume in the spot market.

Shipping companies in UAE should expect to increase the freight spend starting in 2018. Global ports will compete for business by implementing automation for effectiveness and efficiency and improving the vessel size for handling larger containers.

  • Talent
Supply chains are now becoming cornerstones of almost all success strategies of many companies. These systems involve everything from finance to engineering to logistics to information technology. The supply chain experts understand how these factors harmonize to meet the requirements of their organization.

Logistics experts should expect job security and wage growth. However, many logistics companies in UAE demands higher caliber workers with education beyond college. Communication skills are also a plus. Many universities compete to fill the supply chain and logistics talent gap by offering industry certificates and focused MBA programs.

Conclusion

Customer demand and technology will shape the future of logistics companies in the UAE. Companies should equip their employees to succeed in the future by training them in compliance, analytics, and technology. The actual cost in supply chains is no longer in freight rates but in failure to deliver the product at the appropriate time. Companies should align themselves with strategic knowledge-based logistics partners that will provide value-added services that enhance compliance, agility and increase access to emerging markets.
 
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