Demand for air cargo globally has seen a surge over past year. Middle East has held its position as it is one of the most resilient regions across the globe. The latest data reveal that the region’s carriers witnessed 4.5% year-on-year demand growth for air cargo in October with the capacity increased 0.8% year-on-year, as per experts.
-- Dr. Shehara Rizly
Leveraging its strategic location, the Middle East is rapidly transforming into a global hub for air cargo, logistics and supply chain. Some of the key factors which contribute to the rise of this industry is its world-class infrastructure development and progressive policies.
The region is reshaping the future of global trade and commerce by creating mega logistics hubs setting new standards in efficiency and scale with examples of facilities such as Dubai World Central (DWC), King Salman International Airport, and Hamad International Airport.
Secondly, creation of specialised economic zones (SEZ), focused on logistics such as the Saudi logistics hub and Qatar free zones, drive integral solutions for air cargo and the various value-added services.
Last and most importantly is the digital transformation with modern technology and innovation. Advanced technologies such as AI, IoT, blockchain, among others are enabling real-time tracking, predictive analytics, and seamless operations.
Domestic demand has increased this year
Guillaume Crozier, SVP, UAE Cargo & Global Cargo Strategy, dnata
There is a steady volume growth in early 2024 following the global air cargo surge throughout the previous festive season. Momentum was carried throughout the year, with demand, particularly for e-commerce, booming. The demand within the UAE domestic market has solidly grown, and sea and air volumes are rocketing throughout UAE. This is testament to the multimodal services offered in Dubai, catering to rising demand for sea-air products.
Etihad to launch new freighters to Paris in 2025
Stanislas Brun, Vice President Cargo Etihad Cargo
The Middle East’s strategic location has positioned it as a vital logistics hub. Current global challenges affecting rail and ocean freight have increased reliance on air cargo as the only viable option. The growth of Etihad’s passenger fleets and expansion of key destinations, including the 10 recently announced, such as Hong Kong and Taipei, support this rise. We will launch a new freighter service to Paris in 2025, reinforcing its pivotal role in supply chains.
Rise in e-commerce spurs logistics growth
Zameer Marikkar, Chief Commercial Officer, Fits Cargo
The rise of air cargo, logistics, and supply chain in the Middle East is fuelled by its strategic location, connecting key global markets. The growth of e-commerce and diversification has spurred demand for efficient logistics services. Enhanced connectivity, faster delivery times, and position the Middle East as a trade hub. This environment provides opportunities to expand services, build strategic partnerships, and set benchmarks for operational excellence.“
Rise in e-commerce boost air cargo, supply chains
Axel Herzhauser, Global Managing Director, WeFreight
The Middle East’s logistics is likely to grow by 5 per cent, outpacing the global average. This growth is driven by the region’s economic diversification, particularly in the UAE and KSA, focusing on logistics, manufacturing, and technology. The Middle East’s strategic location has made it a key transit hub, enhancing air cargo and logistics operations. The rise of e-commerce continues to fuel demand for fast and efficient delivery systems, boosting the air cargo and supply chains.”
Stress on digitalisation to boost cargo sector
A.S.Azimi, CEO and MD, Azimi Cargo and Logistics
The rise of air cargo, logistics, and supply chain in the Middle East in 2025 is driven by several key factors. The region’s location as a global crossroads between Asia, Europe, and Africa facilitates seamless trade. Investments in world-class infra, such as modern airports, seaports, and logistics hubs, have enhanced operational efficiency. Stress on digital transformation, development of integrated networks, have improved transportation management systems.”
Shifting tides in global logistics in New Year
Razmal Assen, Executive Director, India UAE and Kenya, Scanwell Logistics LLC
The logistics industry is poised for significant transformation next year. Key trends will reshape traditional trade routes, with the reliance on China for moving goods to shift to a different direction as KSA and emerge as major players. This shift will open open new opportunities in these burgeoning markets. The Mediterranean region will witness increased activity, with Europe preparing for these changes, enhancing transit movement between countries.”
Focus on sustainability reshapes supply chains
Yusuf Najim, CEO, Orbit Logistics
The rise of air cargo, logistics, and supply chain in the Middle East is driven by several factors. Firstly, the region’s geographical location acts as a global hub, linking major markets across Europe, Asia, and Africa. This has led to investments in infrastructure, including airports and logistics facilities, enhancing operational efficiency. Secondly, the growth of e-commerce has increased demand for rapid delivery services.
Ushering in an era of growth for industry
Farzad Rustami Managing Director, Skylink Cargo Services LLC.
The rise of air cargo, logistics, and supply chain operations in the Middle East is driven by factors such as the region’s geographical location, cutting-edge infrastructure advanced airports and free zones, and the growing demand for high-value shipments, perishables, and pharma. This growth is ushering in a new era for the industry, characterised by global benchmarks in speed, connectivity, and innovation. Technological advancements, such as automation and AI, are enhancing operational efficiency.”
Economic diversification fuel demand for air cargo
Aashfee Hameed, Group Pricing Manager, Air Freight, Compass Logistics
The Middle East has emerged as an ideal hub for air cargo. Countries such as the UAE, Qatar, and the Kingdom of Saudi Arabia, have recognised potential of air cargo and have invested in expanding their aircraft fleets, modernising their transport and airport infrastructure, and enhancing terminal capacity and efficiency. Economic diversification in e-commerce, and real estate, has fueled the demand for air cargo.”
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