Movement of people and goods is fundamental to economic and social activities. In fact, effective transport and logistics are essential to support economic development and engagement in the global economy. Through its constant evolution, air cargo has become a frontrunner in several global scales.
-Abigail Mathias
Logistic operations require careful planning. Each movement starts somewhere, it may have several stops en route and ends with a final destination. When transport systems are running efficiently, the stakeholders take them for granted. However, we are increasingly dependent on globalised transport systems to support all aspects of our lives, and it is only when things go wrong that we notice them.
A significant aspect of all cargo transactions is geographical location. Ensuring that transport and logistics systems run efficiently and effectively is of crucial importance to the economy. The process requires considerable skill and knowledge, apart from thinking about the size, shape, weight and other physical characteristics of each product to be shipped, to mapping routes and eliminating unnecessary mileage covered by delivery vehicles.
Much of the thinking is geographical in nature; focusing on the spatial analysis and the need to better understand specialised concepts such as systems and flows, globalisation, interdependence and sustainability. With its strategic location, the Middle Eastern region is rightfully assumed to be an integral hub for air cargo and logistics sector. Many stalwarts of the sector spoke to CARGOTALK to discuss how this transformation has come about.
Transport and logistics systems running efficiently is important to the economy
Frederico Fernandes, Associate Director, WIZE Consultants
The Middle East, primarily through its key logistics hubs like Dubai, not only benefits from a strategic geographic position but also boasts modern infra such as speedy processing of goods, crucial for time-sensitive shipments and business-friendly policies that enhance its trading and logistics capabilities.
The region is home to some of the advanced airports and seaports, equipped with cutting-edge technologies for cargo handling and logistics operations. The UAE’s commitment to fostering a conducive business environment is evident through its many free zones. By leveraging advantages such as strategic location, modern infra, favourable policies, and efficient processes—ME operators can maximize their logistic efforts and attract global trade through their networks.
These elements collectively enhance the region’s appeal, especially with the changes in the Kingdom of Saudi Arabia, where a massive logistics hub will be created, ensuring it remains at the forefront of global trade and supply chain operations. This efficiency in administrative processes, with robust legal frameworks and governmental support for logistics and aviation sectors cements the Middle East’s status as a international trading and logistics hub.”
Middle East serves as nexus between West & East markets
Stanislas Brun, Vice President, Cargo Etihad Cargo
Etihad Cargo’s busiest cargo routes serviced by our freighter are China and Vietnam, especially for e-commerce shipments. The Middle East serves as an ideal nexus between Eastern and Western markets due to its strategic position and ongoing investments in infrastructure, which simplify business operations within the region. Etihad Cargo’s peak season is in Q4 and the beginning of Q1 before the Chinese New Year.
Etihad Cargo experienced a strong peak season in 2023, fueled by e-commerce and electronics shipments from Asia. India is our top market for pax services, with our partners and customers gaining from the extra cargo space available due to our augmented flight frequencies. South Korea, various European destinations, and newly introduced Boston route.”
An increase in inflow of air cargo due to changing geopolitical dynamics
Mohamed Jamsidh, Key Account Manager Product Development, Fits Cargo
The Middle East boasts several bustling cargo routes, including Dubai, Abu Dhabi, Jeddah, Riyadh, and Bahrain, serving as junctions for cargo traffic from Asia, Europe, Africa, and North America. This strategic location benefits the region by facilitating mid-point cargo movement, identified by Fits Cargo as an opportunity to connect cargo from diverse origins to reach various destinations.
The third and fourth quarters witness the highest transaction volumes owing to the ongoing Red Sea crisis. We have seen an increase in cargo flow through the Middle East over the past two months. To optimise logistic efforts, ME operators can enhance Road Feeder Service options within the region, expanding linkage from multiple points within the Middle East to address backlogs.”
Middle East’s strategic location makes it central hub
Robin Vermaat, Founder & CEO, RV Consultancy
The Middle East boasts two of the world’s busiest maritime arteries—Strait of Hormuz. This critical chokepoint facilitates the movement of over 21 million barrels of oil daily, supplying energy resources to Asia, Europe, and the Americas. Suez Canal shortens travel times between Asia and Europe by weeks. This strategic waterway is vital for global trade, including oil tanker traffic.
The Middle East’s central location between continents makes it a natural trade hub. While specific peak transaction months can vary, they likely correlate with global trade patterns, potentially surging around holidays or year-end for inventory management. To maximise their logistical potential, the ME operators can look at upgrading ports and expanding capacity to handle larger cargo volumes.”
The region has become key link in intercontinental trade
Pongsathorn Sangasang, Ground Operations and Commercial Director Pattaya Airways
In the Middle East, the busiest cargo routes often link the region’s main commercial hubs and distribution centers. Due to its strategic position, the Middle East is a key link in intercontinental trade, linking Asia, Europe, and Africa. This role is significant for routes traversing the Red Sea and the Suez Canal and, connecting the leading oil-producing nations such as Kingdom of Saudi Arabia, Iraq, and the UAE to the global market.
The Suez Canal is a crucial maritime pathway, acting as the main artery between Asia and Europe. Air cargo is equally important, with hubs such as Dubai playing a central role in linking Asia, Europe, and the Americas. Terrestrial transportation corridors play a vital role, including routes from KSA to the Arabian Gulf countries and links from Turkey to Iraq or Iran.”
KSA, Qatar, the UAE have become busiest air cargo routes
Simona Bakaya, Operations Manager, United Legacy Travels
As the logistics industry grows, it becomes imperative to save on time and travel costs. Geographic locations gain significance. For air cargo operators the busiest air routes are KSA, Qatar and the UAE. Operators in the region must devise ways and means to maximise their location to ensure the smooth transition of cargo.
When geo-location services and capabilities are deployed, firms can optimise their air routes, track assets, identify bottlenecks and gain a better understanding of how and where their assets are going. Location services can better improve worker protection and the flow of goods and services at many levels of the supply chain. Many businesses that have operated in the supply chain visibility space for decades now are aggressively migrating from offline data collection and analysis products to nearly all real time.”
Region is link in distribution of global e-commerce
Glyn Hughes, Director General, TIACA
The Middle East is playing an incredibly important role in the global distribution of e-commerce with a significant volume coming out of China and Hong Kong and routing through the Middle East to Europe in particular. The links between India and the Middle East are providing vital supply chain links for pharma and the high-tech goods.
How can the operators maximise their logistic efforts owing to their geographic location? The answer is very simple, they already are. We are expecting that other production centres in Southeast Asia, such as Vietnam, Malaysia, and south Korea will benefit from production and supply chain de-risking strategies. As such the middle east carriers will still be well positioned to connect those centres of manufacturing with the consumer centres in Europe and elsewhere.”
Indispensable for cargo flow between Asia, Europe, Africa
Svettlana Chatterjee, Director, S CUBE Trans Continental Group
The Middle East hosts some of the world’s busiest cargo routes, with significant traffic passing through the Strait of Hormuz and the Suez Canal thus making MENA an important chokepoint for cargo.
These vital waterways facilitate the movement of goods between Asia, Europe, and Africa, to the rest of the world making them indispensable in global sea cargo transport. The geographic location offers access to the rest of the world—in many ways acting as a bridge.
MENA operators can optimise logistics efforts leveraging the strategic location as a physical bridge. This proximity fosters robust commercial activity, enhancing the region’s geographic significance. Busiest transaction months coincide with peak shipping seasons, during summer and early autumn, due to geographical reasons.”
Region witnessing expansion of airports to support air cargo
Santosh Kumar Soni, Head, Sales, Airglow Aviation Services
There has been demand for cargo in the Middle East, driven by the region’s strategic location between East and West and growing e-commerce activities. The Middle East is experiencing infrastructure development, including the expansion of airports and seaports, which supports the growth of cargo demand in the region.
As per IATA projections, the ME is poised for a surge, with an estimated growth rate of 12.3 per cent in 2024. Key routes include those linking the Middle East to Africa, Asia, and Europe. The Middle East’s geographic location benefits the region in several ways. It serves as the crossroads for trade between Europe, Asia, and Africa, offering access to economically vibrant markets. Generally, the holiday season towards the year-end tends to see more economic activity due to festive shopping and travel.”
Comments