Stringent containment measures to arrest the spread of Coronavirus 2019 (COVID-19) have resulted in a sharp decline in economic and trade activities. Some of these measures include the imposition of travel restrictions, border closures, and lockdowns which have impacted freight capacity and flow of goods in the GCC region. The region is anticipated to see a contraction in the first two quarters of 2020. As the curfews and lockdowns are relaxed, trade activities are expected to pick up in the second half of 2020.
During the rebound phase from the pandemic, digital transformation initiatives are likely to be undertaken in the region with the support of government initiatives which call for the application of digital technologies in both government and private sectors. United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) are likely to emerge as front runners in technology adoption in the areas of customs clearance and port terminal operations. The logistics start-up ecosystem has benefited from government initiatives, increased internet penetration, and mobile technologies. Modern warehouses are becoming automated with more use of robotics, and companies are experimenting with the use of autonomous vehicles and drones for efficient and faster last-mile deliveries.
Advancements in digital technologies are expected to influence manned and unmanned connected autonomous transportation as well as connected physical transportation infrastructure driven by the application of smart sensors. In addition, automation, robotics, autonomous vehicles, and Big Data analytics are expected to either transform or disrupt logistics service offerings.
KEY ISSUES ADDRESSED
- What are the key freight market and warehousing trends that are likely to shape the future of the GCC logistics industry? What is the impact of COVID-19 on the GCC economy and on the logistics industry?
- What are the major digital technologies that are transforming freight transportation, warehousing, logistics, and supply chain solutions, and what is their impact on logistics industry value chain participants?
- What are the emerging business model-driven disruptive digital technologies that are expected to open up new business opportunities for service providers?
- What are the strategic considerations for leading logistics business through the COVID-19 crisis period?