< PreviousSPECIAL REPORT |GLOBAL SHIPPING TRENDS 40 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST According to the report, the anticipated growth in production in alternative regions is expected to accelerate in 2024, with signifi cant transitions taking place after 2025. Looking ahead into 2024, these pivotal trends are poised to shape the global shipping landscape, with persisting consumer spending caution exerting infl uence on container demand and availability, and potentially triggering an uptick in blank sailings across certain regions. Simultaneously, oversupply is set to drive intense competition and reduced profi tability, setting the stage for more mergers and acquisitions in 2024. In light of this, geopolitical uncertainties are expected to project their shadows on established trade routes, while the expanding infl uence of BRICS countries is set to introduce new market dynamics, further infl uencing the shipping landscape. Furthermore, the gradual shift in supply chains away from China stands as a key trend, poised to signifi cantly impact the market. These multi-layered trends, combined, are set to steer the course of the global shipping ecosystem in 2024 and beyond. Container spot rates on major trade lanes courtesy of Container xChange [Source: Clarksons, ING Research] Global container demand after the pandemic [Source: RWI/ISL, ING Research] The surplus in available vessel capacity, paired with reduced demand, could trigger intense competition and price reductions, adversely impacting carriers’ long- term profi tability pressuring international companies to issue advisories and adjust their operations. The consequent challenges posed to key shipping routes, including the Suez Canal and the Strait of Hormuz, add further uncertainty to the industry in 2024. The expansion of BRICS, now including the UAE, Saudi Arabia, Iran, Ethiopia, Egypt, and Argentina, is expected to introduce major shifts in international trade routes, as well as present new alternative payment systems, and support infrastructure development across the region. Nevertheless, the outcome hinges on how BRICS will leverage its expanded infl uence in the evolving global landscape, presenting both opportunities and challenges for the shipping sector. This cooperation, coupled with other recent developments within the region, including the inception of the India-Middle East- Europe Economic Corridor (IMEC) is set to reshape the global shipping dynamics. CHINA PLUS ONE In response to the ongoing trade tensions between the US and China, rising labour costs, and concerns about potential future manufacturing 74% of consumers reduced their nonessential retail spending in 2023 disruptions, similar to those experienced during the COVID-19 pandemic, companies, particularly in the technology sector, are increasingly seeking to diversify their global supply chain operations away from China. While entirely disengaging from China is challenging due to the robust electronic supply chains the country has successfully developed over the past three decades, companies’ strategic moves to relocate their fi nal manufacturing and assembly processes outside of China, while still relying on Chinese suppliers for essential raw materials are on the rise. Moreover, establishing a manufacturing presence in a new geography is a gradual process, typically requiring more than two years. 42KM MARATHON • 10KM ROAD RACE • 4KM FUN RUN Sunday 7th January Register now at dubaimarathon.org Run for the chance to win an EXEED RX *T&Cs ApplyREPORT |LEADERS IN LOGISTICS UAE 2023 42 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST LEADERS IN LOGISTICS UAE 2023 STEERING INNOVATION AND SUSTAINABILITY TO NEW HORIZONSLEADERS IN LOGISTICS UAE 2023 |REPORT 43 www.logisticsmiddleeast.comLOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 Ramy Jallad, Group CEO, Ras Al Khaimah Economic Zone (RAKEZ) Achraf Ellili, Group CEO, Flow Progressive Logistics Ognjen Jovanovic, eTrucks Manager, Daimler Trucks and Buses MENA (left) and Kivanc Karayol, Market Director, Volvo Group (right) The National in Country Value Programme—encourages government entities to procure locally, redirecting billions back into the local economy and supporting local jobs HE Abdullah Al Shamsi, Assistant Undersecretary for Industrial Growth, Ministry of Industry and Advanced Technology (MoIAT) T he Leaders in Logistics UAE 2023 summit concluded its 13th iteration on 8 November with sweeping success, leaving an indelible mark on the UAE’s logistics and supply chain landscapes. Logistics Middle East’s fl agship event, held at the Grosvenor House Hotel, saw a convergence of senior state offi cials, infl uential decision-makers, visionary business leaders, and industry experts. The event off ered a pivotal platform for exchanging insights and perspectives, as well as exploring the latest developments and identifying the growth opportunities within the UAE’s dynamic logistics and supply chain sectors. A VISIONARY PRELUDE The summit commenced with a compelling keynote address by HE Abdullah Al Shamsi, the Assistant Undersecretary for Industrial Growth at the Ministry of Industry and Advanced Technology (MoIAT), illuminating the UAE’s steadfast commitment to realising sustainable economic development through a multifaceted approach, encompassing an array of growth-focused strategies, Comprehensive Economic Partnership Agreements (CEPAS), and development programmes, designed to facilitate international trade and bolster the nation’s position as a prominent logistics and supply chain hub. Al Shamsi shared valuable insights into the UAE’s strategy for economic sustainability, emphasising the imperative of nurturing local supply chains, rechannelling procurement to boost the local economy, and supporting local industries through Emiratisation initiatives and Off -Take Agreements. “The National in Country Value Programme launched two years ago, aims to establish shorter and more resilient supply chains by off ering more opportunities to UAE goods and service providers. The programme encourages government entities REPORT |LEADERS IN LOGISTICS UAE 2023 44 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST Sustainability is not only a fi nancial paradigm shift, but also a cultural paradigm shift Ramy Jallad, Group CEO, Ras Al Khaimah Economic Zone (RAKEZ) to procure locally, redirecting billions back into the local economy and supporting local jobs,” HE said, drawing an example of the ministry’s numerous initiatives. FIRESIDE INSIGHTS As the day unfolded, the summit lived up to its reputation for hosting industry- shaping discussions, with panel discussions, fi reside chats, and keynotes featuring a distinguished line-up of industry luminaries and esteemed business leaders. Building upon the compelling inauguration address, the summit delved into the imperative of integrating sustainability into the very fabric of logistics operations, with a fi reside chat featuring Ramy Jallad, the Group CEO of Ras Al Khaimah Economic Zone (RAKEZ), moderated by Karim Tolba, the Editor of Logistics Middle East. Jallad fi rmly asserted that sustainability is not merely a fi nancial paradigm shift, but also a cultural one. “It is a commitment—and I believe that [companies] have got to start instilling it because it is going to happen,” he declared. Achraf Ellili, the CEO of Flow Progressive Logistics, steered the conversation towards the pivotal role of digitalisation in advancing the industry’s sustainability agenda and realising its long-term environmental targets. “As logistics leaders, we must champion initiatives that provide our teams with the skills to navigate the [industry’s] evolving landscape,” he stated, stressing the importance of investing in a robust infrastructure capable of accommodating the sophisticated demands of a digitally sustainable era. Panel discussion: Emerging sustainable supply chain opportunities Ibrahim Abu Zayed, Executive Board Member, NAFLLEADERS IN LOGISTICS UAE 2023 |REPORT 45 www.logisticsmiddleeast.comLOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 A HOLISTIC APPROACH Delving deeper into the realm of sustainability, a panel discussion shed light on emerging opportunities within the Middle East’s supply chain landscape, particularly in the areas of environmentally friendly packaging solutions, renewable energy, and smart warehouses. Furthermore, the panel explored strategies to expedite and promote investments in sustainable supply chain practices. GMG’s Vice President of Logistics, Gilbert Abi Zeid, stressed the need to adopt a holistic approach to sustainability, by integrating AI-powered forecasting models with smart warehouse systems, renewable energy sources, and advanced planning tools. The Middle East has shown time and time again that it has the strength, that it’s a force to be reckoned with Michael Rasin, General Manager—UAE, Miebach Consulting Abhishek Shah, CEO, Neo Mobility Priyanka Singh, Head of Shipping and Logistics, MBR Recruitment Panel discussion: The future of automotive spare parts distribution Gilbert Abi Zeid, Vice President—Logistics, GMGREPORT |LEADERS IN LOGISTICS UAE 2023 46 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST Dimitris Revynthis, Group Operations Manager, NEWEAST This comprehensive blend, according to Abi Zeid, could signifi cantly enable businesses to curb their carbon footprints, by ensuring optimal inventory levels at warehouses and utilising AI-driven planning tools to maximise fl eet utilisation and optimise delivery routes, ultimately reducing their overall environmental impact. On his part, LogiPoint’s Commercial Attache for the UAE, Nadeem Qureshi, contributed a unique perspective, asserting that sustainability should extend beyond operational phases such as warehousing and transport operations, to the initial planning and designing stage. “No two warehouses are alike! Facilities built for an e-commerce giant, a last-mile delivery company, or a manufacturing company are inherently diff erent. We work closely with our clients to design the facility from scratch, [focusing] on how we can comply with their sustainability requirements,” he said. TRANSFORMATIVE TECHNOLOGIES Transitioning into the technological frontier, the summit explored how cutting-edge automation and robotics tools can transform the logistics industry and steer the evolution of the supply chain sector in the region, by introducing unprecedented operational effi ciencies and enhancing businesses’ overall performance. Moreover, the session tapped into the future of the automotive spare parts supply chain, examining how distributors are embracing advanced systems and warehouse automation tools to enhance their supply chains’ responsiveness and effi ciency, while strategically positioning new distribution hubs to meet the escalating regional and global demand. ELECTRIFYING THE FUTURE Green transportation solutions took centre stage in another compelling session, focusing on the increased adoption of Electric Vehicles (EVs) in logistics operations. In our industry, employee growth is not just about climbing the corporate ladder, it’s about nurturing skills and knowledge that benefi t both the individual and the organisation Priyanka Singh, Head of Shipping and Logistics, MBR Recruitment Leaders in Logistics UAE delegations Panel discussion: Revolutionising supply chain and logistics through automation and roboticsLEADERS IN LOGISTICS UAE 2023 |REPORT 47 www.logisticsmiddleeast.comLOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 Flow Progressive Logistics delegation Hamad Al Sayegh, Head of Strategic Accounts, DP World Michael Rasin, General Manager-UAE, Miebach Consulting Panel discussion: Navigating the future of EVs The session underscored the transformative potential of EVs in curbing the industry’s carbon footprint and boosting the effi ciency of transport activities. A notable panel discussion highlighted the potential of EVs and hydrogen-powered vehicles in signifi cantly reducing greenhouse gas emissions, compared to traditional combustion-powered fl eets, where Industry experts shared insights into the strategic implementation of these technologies and their impact on regional and global demand. NURTURING GROWTH Priyanka Singh, the Head of Shipping and Logistics at MBR Recruitment, took the stage to share valuable insights into the key REPORT |LEADERS IN LOGISTICS UAE 2023 48 www.logisticsmiddleeast.comDECEMBER 2023 - JANUARY 2024 | LOGISTICS MIDDLE EAST workforce-related challenges facing businesses in the logistics and supply chain sectors, and how they can be eff ectively addressed to sustain growth and operational effi ciency. “In our industry, employee growth is not just about climbing the corporate ladder, it’s about nurturing skills and knowledge that benefi t both the individual and the organisation,” she said, emphasising the need to foster an environment of continuous development and long-term growth. Miebach Consulting’s General Manager for the UAE, Michael Rasin, off ered a comprehensive analysis of the key market challenges facing logistics and supply chain leaders, outlining a range of misconceptions that infl uence professionals in these sectors. “The Middle East has shown time and time again that it has the strength, that it’s a force to be reckoned with,” he noted. Nadeem Qureshi, Commercial Attache-UAE, LogiPoint Suhail Siddiqui, Purchasing Manager, Juma Al Majid HE Abdullah Al Shamsi, Assistant Undersecretary for Industrial Growth, MoIAT Alain Kaddoum, Managing Director, Savoye Middle East Talha Malik, Director—Project Logistics ME, GEODISLEADERS IN LOGISTICS UAE 2023 |REPORT 49 www.logisticsmiddleeast.comLOGISTICS MIDDLE EAST | DECEMBER 2023 - JANUARY 2024 COLLABORATIVE SOLUTIONS The summit concluded on a high note, with a panel discussion on the collaborative eff orts aimed at addressing industry challenges. The discussion underscored the vital role of partnerships in streamlining regulatory and customs processes, along with the pressing need to attract and retain skilled talent across all facets of supply chain operations, from warehousing to transportation, and technology. In essence, the Leaders in Logistics UAE 2023 summit not only stood as a prominent industry event but also as a key driving force behind transformative initiatives in the UAE’s logistics and supply chain sectors. As the sector navigates towards a sustainable and innovative future, the summit continues to guide the way forward, ushering in a new era of collaboration, technological advancement, and environmental consciousness. Panel discussion: Navigating the future of EVs El Mehdi Taha Bouamri, Director—Transportation, Chalhoub Group Leaders in Logistics UAE delegations Ognjen Jovanovic, eTrucks Manager, Daimler Trucks and Buses MENANext >