Dubai, UAE: The Dubai Integrated Economic Zones Authority (DIEZ), and logistics giant Aramex, recently commenced the pilot testing of Aramex’s pioneering autonomous robot delivery system at Dubai Silicon Oasis (DSO), the special economic zone for knowledge and innovation and a member of DIEZ.
The initiative marks a significant step towards the integration of sustainable autonomous delivery vehicles within the urban fabric of Dubai, in line with the Dubai 2040 Urban Master Plan, and represents a pivotal step in the realization of Dubai’s vision to convert 25 percent of its transportation system to autonomous mode by 2030.
The pilot phase testing, scheduled to run for three months, is set to achieve full operational status by September. Initially, it will cover the Cedre Villas community in Dubai Silicon Oasis. This phase introduces a state-of-the-art multi-cabin delivery robot, a significant upgrade from previous single-cabin bot deployments.
With the capability to make multiple deliveries per trip, it enhances operational efficiency and is projected to reduce carbon emissions by over 500 kilograms during its three-month tenure. Moreover, the robot is expected to autonomously deliver over 1,000 packages to customers within the Cedre Villas community.
Anticipating future expansions, DIEZ plans to expand this initiative to encompass its other economic zones, including the Dubai Airport Freezone and Dubai CommerCity.
Eng. Muammar Khaled Al Katheeri, Chief Officer of Engineering and Sustainability at DIEZ, said: “Our collaboration with Aramex underscores our dedication to advancing innovative solutions that enhance sustainable urban development in Dubai, aligning with the objectives of the Dubai 2040 Urban Master Plan. By introducing carbon-neutral delivery robots at DSO, as part of our Smart City Strategy’s focus on smart mobility, we are showcasing our dedication to incorporating advanced technology for a greener future.”
“This initiative not only demonstrates our leadership in nurturing an innovative, safe, and sustainable ecosystem but also signals the start of a new era in logistics solutions. It’s a stride towards enriching the urban living standards of Dubai’s residents and businesses, promising a brighter, more sustainable future.”
Tarek Abuyaghi, General Manager of Aramex, commented: “We are thrilled to partner with DIEZ for this groundbreaking initiative, which enhances our last-mile delivery services. Our commitment to operating smart, efficient, and customer-friendly services is unwavering, with innovation at its core—driving us to continuously improve efficiency and prioritize environmental sustainability. This initiative reflects our proactive, integrated, and stakeholder-centric approach, guiding everything we do. We are excited to make a positive impact on the environment while enhancing the urban living experience. We thank DIEZ for their partnership and look forward to offer residents the opportunity to experience future-centric delivery services.”
Residents expecting Aramex packages will be provided with a secure pin code to access their deliveries, ensuring safety and security. Additionally, the operation will be bolstered by a mobile outlet stationed at Cedre Shopping Centre to facilitate continuous loading and unloading, as well as the monitoring of all bot operations.
The delivery bot is outfitted with advanced technologies such as a depth camera, multiple human-bot interface elements, and extensive 360-degree video coverage, ensuring optimal performance in both indoor and outdoor environments. Its design, which includes a swappable battery pack and eight compartments for different parcel sizes, demonstrates a dedication to solving the logistical demands of today’s urban living.
The pilot’s success, as assessed by key metrics such as safety, efficiency, and customer satisfaction, will determine the initiative’s future growth throughout Dubai, demonstrating the potential for autonomous delivery trucks to become an integral component for urban logistics.
Dubai Silicon Oasis, as the innovation and knowledge hub under the Dubai 2040 Urban Master Plan, provides an ideal backdrop for this pilot. The area’s supportive environment for autonomous and smart transportation solutions makes it a fertile testing ground for this revolutionary delivery model.
Miami, Florida: The International Air Cargo Association (TIACA) concluded its fifth regional event, the TIACA Event Central Asia held June 19-21 in Astana, Kazakhstan, with a path forward to support Kazakhstan as it seeks to develop as a global air cargo hub.
TIACA’s first event in Central Asia, held in Astana, brought together nearly 400 delegates from across the industry to discuss issues that affect the Central Asian air cargo market and gave insight into how to develop Kazakhstan as a global air cargo hub.
Topics such as, eCommerce, multimodal logistics, air cargo trends, innovation and digitalization, sustainability and industry regulations were addressed.
The event kicked off with a meeting between the Minister of Transport of the Republic of Kazakhstan, Marat Karabayev, Catalin Radu, Director General, Aviation Administration of Kazakhstan, Nurzhan Malayev, Director, Passenger and Cargo Facilitation, AAK, Glyn Hughes, Director General TIACA, and Steven Polmans, Chair, TIACA.
They discussed the future of Kazakhstan as an air cargo hub and the need for efficient borders that facilitated cargo movements, including the growth of ecommerce. They discussed how Kazakhstan is uniquely placed as the only country that could provide effective rail / air links between China and Europe and how best to develop this opportunity.
They also spoke about Kazakhstan developing its economy beyond oil and mineral based extraction and how this could help establish a vibrant multi-tiered economy across the region. The Minister then welcomed all delegates to the event with a message promoting the growth of the economy through a clear central vision and plan.
Event delegates bore witness to over 10 MoU signing’s supporting the promotion and growth of the Kazakhstan air cargo market, as well as participating in two days of lively discussions, debate and informative sessions as well as networking opportunities throughout the event graciously sponsored by the event hosts, the Ministry of Transport of the Republic of Kazakhstan and the Aviation Administration of Kazakhstan.
“This event brought to light the important role that Kazakhstan has to play within the industry, and we are delighted to help promote their growth as an air cargo hub. We are pleased to see the success of these events continue as we develop our membership and reach into these regions. We thank our hosts for their strong support in making this event so successful,” said Steven Polmans, Chair, TIACA.
TIACAs regional events are designed to identify specific issues on a regional level that TIACA can incorporate into our overall work on behalf of the industry. Each regional event will develop an action plan that will be incorporated into TIACA’s strategic objectives and activities.
“There is a strategic goal, supported by our president and prime minister, to position Kazakhstan as an air cargo hub due to our favorable geographic location, historical context (Silk Way) and available resources. Our collaboration with The International Air Cargo Association (TIACA), the number one global air cargo industry association, will address challenges and set the agenda for Kazakhstan’s emergence as a regional hub,” Catalin Radu, Director General of Aviation administration of Kazakhstan said.
“The conference program included a strong presence of diverse industry experts that displayed key knowledge and experience that will help drive the region forward as an air cargo hub. We look forward to supporting Kazakhstan in the delivery of their vision for the future,” Glyn Hughes, TIACA Director General commented.
Atlanta, USA: Kale Info Solutions (Kale) has called on the air cargo supply chain industry to look into ways of improving communication and to modernize infrastructure especially with the boom of e-commerce being felt globally.
The CLEAR VIEW Americas summit, held in Cancún, Mexico, saw air cargo leaders and C-suite attendees discuss key issues for the future of the industry.
Among the topics discussed were how to accommodate the e-commerce boom, sustainability, and aging infrastructure across the Americas.
“We know that communication and digitalization are critical to the logistics industry, and we have learnt so much by bringing together major players from across the supply chain to discuss the future of our industry – especially as e-commerce reshapes air cargo opportunities globally,” said Amar More, President, Kale Info Solutions.
“We can see the impact that e-commerce is having on the global marketplace and know that we need to accommodate this growth, which we can do by increasing efficiency through digitalization and modernizing infrastructure allow seamless transport links.”
Overcoming resistance to digital transformation was just one of the barriers discussed as Kale currently supports a change in attitude at all organizational levels to synchronize communication channels up and down the supply chain.
Digital innovation, and acceptance to enhance operational capabilities through this was also debated as supplementary regulatory support proving to be crucial for further improvements.
The summit had participation from airports, airlines, cargo handling companies, 3PL service providers and consultants.
Speaking about the CLEAR VIEW summit, Pamela Bermudez Montoya, Executive Director, Association of International Airlines in Colombia (ALAICO) said, “It was a very enriching experience filled with collaboration and learning from all these cargo great professionals.”
“The sessions were truly valuable to visualize how technology could and should contribute to a more sustainable and efficient logistical process, while simultaneously driving the required industry and government technological changes.”
The next Kale CLEAR VIEW event will be held in Istanbul, Turkey this October, where industry thought-leaders and organizational heads will reconvene.
Stockholm, Sweden: DANX has opened a new freight hub in Örebro, Sweden, as a strategic response to growing demands for quicker logistics lead times in remote areas.
The expanding green industrial sector in northern Sweden has meant that developing both a By:NIGHT and By:DAY delivery schedule was increasingly essential.
“This investment means a better service for DANX customers with increased capabilities for hard-to-reach areas leading to additional delivery options for northern Sweden,” said Martin Grauers, Managing Director, Sweden.
“We have enhanced our product offering while handling increased freight volumes, which are currently growing by 30% year on year. Additionally, the Örebro terminal is powered by 100% renewable energy for heating and lighting, and has improved insulation, so compared to the previous site that used to serve this area, we have made significant sustainability improvements.”
The terminal sits within a densely populated area and with regions that have traditionally posed a logistics challenge, such as Närke, Dalarna and Värmland; these regions can now be more easily serviced along with the northern tip of Sweden.
“DANX is continuing to strengthen its Swedish capabilities through a combination of strategic investment in our network, a resilient final mile solution, and cutting-edge tech,” said Ann-Sofi Ståhl, DANX Sales Director.
“These are important elements of time critical logistics and our continued focus upon them ensures our market leading position within the Nordics and Baltics.”
DANX also offers all types of warehousing in the region with up to 2600 square meters of capacity.
SINGAPORE: Worldwide Flight Services (WFS), a member of the SATS Group, has been selected by U.S. Customs and Border Protection (CBP) to operate a new Centralized Examination Station (CES) at New York’s John F. Kennedy International Airport (JFK).
WFS has been awarded a five-year contract by CBP, one of the world’s largest law enforcement organizations and the United States’ first unified border entity, which takes a comprehensive approach to border management and control, combining customs, immigration, border security, and agricultural protection.
When the CES begins its phased opening in Q1 2025, it will become the first Air CES to contain all segments of CBP inspections as well as the first on-airport examination facility at JFK, processing import, export, and USDA (Department of Agriculture) goods. Currently, the nearest CES station to JFK is located at Newark Airport.
“The Centralized Examination Station (CES) is a game-changer for U.S. Customs and Border Protection at JFK Airport. The efficiencies realized from this facility will allow CBP to optimize resources and enhance our enforcement efforts to keep bad things, such as dangerous precursor chemicals, goods that infringe on intellectual property rights, and imports that place the American people at risk for their health and safety, out of the commerce of the United States,” said Salvatore Ingrassia, Port Director, U.S. Customs and Border Protection (CBP) at JFK. “The CES is also a win-win for the JFK trade community, as the billions of dollars of lawfully imported goods will move through the JFK network with even greater speed and efficiency.”
He added: “We recognise Worldwide Freight Services (WFS) as a global leader in international cargo and ground handling logistics, applaud their forward leaning innovation in the industry, and thank them for their willingness to step up as the CES Operator at JFK Airport. We look forward to our continued collaboration with WFS, the Port Authority of New York and New Jersey, our DHS partners, as well as our Partner Government Agencies, as this project moves forward.”
JFK is North America’s busiest international airport by both international passengers and international widebody flight operations. As a result, JFK is a primary gateway for international air cargo – both for passenger airlines flying cargo in the bellyhold of aircraft as well as pure freighter activities.
Over 85 international airlines move cargo through JFK in one of 20 different on-airport air cargo
warehouses, facilitating an annual cargo throughput of approximately 1.4 million tons.
JFK ranks in the top 10 in the US for annual air cargo activity and top 25 globally, supporting over 70,000 jobs in the region and approximately $16 billion in economic impact.
“WFS is honored to have been chosen by U.S. Customs and Border Protection, which is America’s front line to detect and disrupt threats at and beyond the country’s borders. WFS is proud to have been given this opportunity to support CBP’s outstanding work in protecting the safety and security of the United States by leveraging our cargo handling expertise,” said Mike Simpson, CEO the Americas at WFS. “This partnership marks another exciting chapter for WFS and underscores our unwavering commitment to safety, security, and innovation in air cargo handling. We look forward to delivering exceptional service and contributing to the continued success of JFK and the air cargo industry.”
The CES facility will be located within Building 151 at New York JFK, one of WFS’ cargo facilities at the airport, and will occupy more than 100,000 sqft of warehousing, office accommodation, and support facilities. The CES will benefit from the facility’s key location close to the ramp, providing fast airside access within the airport boundary from any airside location.
All shipments requiring inspection will need to be transported to the CES from their respective airline facilities. The on-airport examination station will yield significant productivity efficiencies for CBP officers, who will no longer have to travel to the cargo at various locations to complete inspections.
In preparation for the CES opening, WFS will be building out the facility to suit the specific requirements of CBP. Additionally, custom software is being developed to make the JFK operation the first paperless CES, supporting WFS’ commitment to air cargo digitisation. WFS’ existing dock management software will also ensure efficient processing of trucks, while digital dashboards will be used to monitor the progress of shipments to optimise the smooth processing of cargo.
New York JFK is one of WFS’ biggest international cargo stations, serving some 40 airline customers across eight handling facilities at the airport. In 2025, WFS will increase its cargo capacity at New York’s John F. Kennedy International Airport (JFK) by another 20% with the opening of a new 346,000 sq.ft. terminal incorporating advanced technology and sustainability solutions.
The new facility will take the company’s footprint at the airport to over 700,000 sq. ft. and grow capacity to more than 675,000 tons per annum.
WFS Americas operates 85 stations in key cities in the United States and Canada. These are integral to the SATS Group’s network of 215 stations in 27 countries, which offer customers global network connectivity and the support of dedicated teams with extensive experience in the aviation sector who are focused on delivering operational excellence and a positive experience for customers.
Dubai, UAE: Leading global provider of comprehensive logistics and transportation solutions, Aramex (DFM: ARMX), announced its first quarter financial results ending 31 March 2024 delivered solid revenue to the Group resulting to double net profit of AED 47 million.
Aramex Group reported its Gross Profit surged by 10% to AED 395 million, in the first quarter of 2024 compared to AED 358 million in Q1 2023. This nearly doubled its net profit for Q1 2024 to AED 47 million, marking two consecutive quarters of strong performance. The Net profit margin improved to 3%.
The Group’s International Express and Domestic Express drove strong revenue growth, while Freight Forwarding showed resilience with a 3% increase amid global shipping challenges. Logistics and Warehousing maintained stable performance both in Revenue and Profitability, adeptly navigating the currency devaluation impact coming mostly from Egypt.
Its dual focus on sales and operational efficiency translated into bottom-line success, evident in improved margins across Gross Profit, EBIT and EBITDA.
Aramex added it continues to be well-positioned with a strong cash position of AED 571 million and a Net Debt-to-EBITDA ratio of 0.8x. Management’s focus on value creation delivers 40 basis points improvement in ROIC, currently standing at 5.2% for the trailing 12 months.
Othman Aljeda, Chief Executive Officer, Aramex, explained: “Our International Express delivered a 44% increase in volumes YoY in Q1 2024, while Domestic Express delivered a 7% increase, with both driven by new customer wins, as well as seasonality during Ramadan. Our freight forwarding product grew volumes double digit across land, sea and air while our Logistics and Warehousing product continued to support customers with 3PL and 4PL activities ensuring efficient logistics and fulfillment of goods in key markets.”
“During the first quarter of the year, we injected significant volumes into our network while maintaining high service levels. I am proud of my team’s performance and commend the hard work of every Aramexian, for their dedication and capability to handle significant volume growth and heightened consumer activity, seamlessly delivering the level of service our customers value. Our ongoing investment in automation and operational optimization remains a core advantage and has ensured that our network is agile and responsive to our customer needs and market dynamics,” he added.
Brussels, Coral Gables: PayCargo, the leading logistics payment platform, and connected cargo solutions specialist Nallian proudly announce their strategic collaboration aimed at accelerating and streamlining air cargo management.
By integrating Nallian’s cutting-edge slot management solution with PayCargo’s efficient payment platform, customers will benefit from a powerful system to optimize every aspect of the freight pick-up journey. This will eliminate truck wait times, shorten dock turnaround, improve staff planning, and reduce administration.
How it works
Freight forwarders and trucking companies schedule a time slot at the cargo handler using Nallian’s Truck Visit Management System to pick up or drop off freight. The PayCargo platform will streamline all payments and transactions related to import cargo.
Upon arrival, drivers no longer have to wait but can immediately proceed to the dock door assigned to them. This integrated approach enhances operational efficiency, enables faster cargo release, and reduces paperwork and administration.
Eduardo Del Riego, CEO of PayCargo, comments: “We are thrilled to partner with Nallian to offer an integrated solution that addresses the evolving needs of the air cargo industry. By combining our expertise, we enable our customers to streamline truck visits, accelerate payments, and achieve greater success.”
Jean Verheyen, CEO of Nallian, adds: “We are committed to driving innovation and delivering value to our customers. Our collaboration with PayCargo represents a strategic alignment of our shared vision to raise the bar for efficient, paperless freight management. It will allow our customers to better coordinate activities so they increase efficiency and reduce their environmental impact.”
Paris, France: With less than four months to go to the opening ceremony of the Paris 2024 Olympic and Paralympic Games – which, for the first time in history will be take place on water – HAROPA PORT and France’s national waterways authority (Voies navigables de France – VNF) have arrived at an initial overview of where river transport decarbonisation now stands.
Committed to energy transition for some years now, all stakeholders are working around the clock to ensure that river fleets are greener, speeding the roll-out of cleaner propulsion systems and a quayside electrification program.
The energy transition in the river fleet will be ramping up even more in the months and years to come given that the majority of recreational craft will be running on electricity.
The Paris 2024 Olympic and Paralympic Games offer a magnificent opportunity to exploit the key advantages of river transport to address ecological and societal issues, specifically based on the roll-out of cleaner propulsion systems and quayside electrification.
Roll-out of cleaner propulsion systems
An ambitious goal was set for 2024 with the intention of speeding up the energy transition across the entire river fleet.
During the opening ceremony almost 30 craft will be fitted with electric or hybrid ICE/electric propulsion systems. To achieve this target, VNF has devoted major effort, working with its partners (France’s Environmental and Energy Management Agency – ADEME – the Greater Paris regional authority and HAROPA PORT), to supporting the private sector using a Modernization and Innovation Aid Program (PAMI), whose overall budget has now been increased by €5 million from France’s central government.
The 30 or so craft selected for the opening ceremony of the Paris 2024 Olympic and Paralympic Games come from the Paris fleet, which comprises a total of over a hundred commercial vessels.
To date, 20 engine retrofit projects and the construction of 11 new craft have already been implemented or are currently ongoing.
The transition to greener propulsion systems in the river transport sector is the subject of a deliberate and collective approach unique in Europe, in furtherance of the energy transition and competitive performance in the sector. Actors in the river economy consider their commitment to this transition to be a significant contribution to the legacy of the Paris 2024 Olympic and Paralympic Games.
The collective nature of this approach to supporting the energy transition of the fleet has led to the initiation of solutions that can be replicated in legal and technical, as well as financial terms, making possible an outcome that would not have been feasible for individual stakeholders, especially as operators of river craft in Paris are, in the main, either very small or medium-sized enterprises.
This means, for example, that in order to offset the investments associated with a greener fleet, HAROPA PORT has put in place a support program for its customers to enable passenger craft to obtain extensions to their temporary occupancy agreements on condition that they commit to switching to hybrid or 100% electric propulsion for their fleets with at least one vessel completed by 1 June 2024. This will be the case for Vedettes de Paris, which will be signing a rider of this kind to its occupancy agreement, as also will Vedettes du Pont Neuf.
According to the Paris Ports Community (CPP) these projects represent an overall investment of over €38m: an average of €1.2m per vessel, or 120% of base value.
Retrofits have been made the priority since they allow the existing fleet to be retained and lengthen vessel life, which in turn has genuine ecological advantages, rather than replacement with new construction.
River cruise boats account for 40% of retrofit projects, (60% electric and 40% hybrid), small boats carrying less than 12 passengers represent 25%, and private and working boats 15%.
Where new construction is concerned, small craft account for a little over 82% of all projects, compared with 18% for private-sector boats (service provision, events, food catering, etc.). The core of this new fleet is electric, at 63%, compared with 27% hybrid and 9% running on hydrogen.
The goal is to see a majority of all Paris river craft powered by electricity at the 2037 horizon.
Speeding up the development of the quayside electricity network
Th electrification of Seine basin docks constitutes one of the major work programmes at the present time.
In Paris, certain passenger transport stops have already been equipped: one example is the port of Grenelle with three connection terminals for use by passenger craft. Similarly, river cruise boats with on-board accommodation in Paris already have quayside connections to the electricity grid.
Along the Seine Axis as a whole, 44 electricity terminals have already been installed on docks under HAROPA PORT and VNF management, enabling 4,300 tonnes of CO₂ emissions to be eliminated every year.
By the end of 2024, 82 additional terminals will have been provided on the Seine and the Oise, comprising terminals for freight (16A, 32A, 63A), cruises (400A) and wintering (125A), as well as for events and recreational craft (125A). For 2026, the target is to have achieved 132 quayside connection points on the Seine basin in order to meet the needs of users.
This program of provision of supply points for electricity and water now being driven by VNF and HAROPA PORT represents a total investment of €9.2m and has the support of the EU and Greater Paris regional authority.
Additionally, in conjunction with a national study – FLUENT (for FLUvial ENergie Transition) – VNF is conducting a foresight study for an offering of alternative fuels bunkering along the entire Seine valley (AviCafe); the results of this will be made public in 2024.
The transition to greener propulsion systems in the river transport sector is the subject of a deliberate and collective approach unique in Europe, in furtherance of the energy transition and competitive performance in the sector. Actors in the river economy consider their commitment to this transition to be a significant contribution to the legacy of the Paris 2024 Olympic and Paralympic Games.
The collective nature of this approach to supporting the energy transition of the fleet has led to the initiation of solutions that can be replicated in legal and technical, as well as financial terms, making possible an outcome that would not have been feasible for individual stakeholders, especially as operators of river craft in Paris are, in the main, either very small or medium-sized enterprises.
Dubai, UAE: DHL Global Forwarding, the leading provider of air, ocean and road freight services, and TotalEnergies have successfully solarized seven of DHL sites in Dubai, marking a new milestone in DHL’s sustainability journey to reduce logistics-related emissions to net zero by 2050.
DHL Global Forwarding and TotalEnergies have signed a Power Equipment Lease Agreement (PELA) in 2021 for the solarization of seven sites in Dubai. The move is expected to save around 5,000 tCO2e in the first year—the equivalent of 119,000 trees planted per year.
The 7 MWp solar project will produce over 11,000 MWh per year across DHL sites in JAFZA 1 – 4, DAFZA 39 – 43, DWC AFR and DWC CGF, which will cover 80% of the seven buildings’ energy needs. The solar rooftops are equipped with over 12,000 solar photovoltaic modules, covering a surface equivalent to 27,000 sqm. In addition, TotalEnergies has equipped DHL’s sites with solar- powered electric vehicle charging stations, contributing to the Group’s goal of electrifying 60% of its fleet by 2030.
Amadou Diallo, CEO of DHL Global Forwarding Middle East and Africa, said: “As the world’s leading logistics company, we are more committed than ever to achieving a net zero-emissions future by redefining logistics. We are proud to announce that we have reached our target of 100% solarization of seven of our sites in Dubai with our partner TotalEnergies. This is in line with the UAE’s wider sustainability agenda, which aims to create a future with access to sustainable energy, healthy ecosystems and increased resource efficiency.”
Hamady Sy, Managing Director of TotalEnergies Renewables Distributed Generation Middle East and Africa, added: “TotalEnergies is committed to delivering energy that is affordable, sustainable, reliable and accessible to as many people as possible. We are delighted to have supported DHL Global Forwarding in fulfilling its sustainability ambitions in the region. We are confident the successful solarization of DHL’s sites will accelerate low carbon logistics in the region.”
DHL Global Forwarding has pioneered a number of low-carbon initiatives in the UAE. In 2022, the company launched a 23,500-sqm EV Hub in Dubai South for batteries to be stored, recycled, repaired, and processed at end of life, ensuring long-term sustainability. DHL Global Forwarding also upgraded its digital customer portal, myDHLi, allowing customers more options to reduce their ecological footprint with DHL’s GoGreen Plus service and also track and report their CO2 emissions reductions.
Unveiling Trends and Innovations Shaping the Future of Supply Chains
By: Poonam Chawla
In an exclusive interview with Poonam Chawla, Associate Publisher of Air Cargo Update, Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, shares insights into the dynamic landscape of logistics.
From the impact of Artificial Intelligence (AI) on supply chains to sustainable practices in packaging and transportation, Diallo delves into key trends and DHL’s pioneering role in driving innovation across the industry.
Artificial Intelligence is at the forefront of technological developments. Could you give specific examples of how AI impacts logistics and supply chains?
Research indicates that 51% of businesses harness AI primarily to bolster innovation and 47% use it to enhance customer experiences. However, only a quarter of these organizations recognize AI’s potential to unlock new revenue streams. This suggests a substantial underestimation of AI’s role as a driver for both top-line growth and market differentiation.
In the logistics sector, AI is revolutionizing logistics and supply chain management by enabling efficiency in critical business operations, leading to faster delivery times and reduced fuel costs.
In regions like the Middle East, the integration of AI into supply chain practices is setting the stage for a major overhaul of the logistics sector. By adopting AI-driven tools like predictive analytics and automated inventory management, companies are not only boosting operational efficiency but are also positioning themselves as competitive players on the global stage. This strategic adoption of AI marks a critical shift from traditional methods to a more agile and data-driven approach in logistics.
The imminent future will be driven by digitalization and sustainability. What trends do you see in both that benefit the logistics industry?
The logistics industry is rapidly evolving under the dual influences of digitalization and sustainability. Artificial Intelligence (AI) is a major trend, already implemented by 36% of businesses to enhance supply chain operations, with projections suggesting a productivity increase of over 20% by 2035. In the Middle East, AI’s impact is pronounced in e-commerce markets like the UAE and Saudi Arabia, driving advances in predictive analytics and automated warehousing. Alongside AI, supply chain diversification is gaining traction as companies strive to mitigate risks from global disruptions by developing more flexible and strategically located logistics networks. Sustainability is also a key focus, reflected in services like DHL’s GoGreen Plus, which promotes the use of sustainable fuels and electric vehicles to reduce GHG-emissions in supply chains. The Internet of Things (IoT) is set to further revolutionize the industry with smart labels that enhance visibility and improve inventory management through real-time data transfer using technologies like QR codes and RFID.
Concurrently, as digital vulnerabilities increase, cybersecurity is becoming a priority, with the sector enhancing its defenses against threats such as phishing and ransomware to protect sensitive data and maintain operational integrity. These trends collectively herald a transformative period for logistics, emphasizing efficiency, security, and environmental responsibility.
As these technologies and strategies become more embedded in the logistics infrastructure, they promise to significantly reshape the industry landscape, especially in regions actively embracing digital and sustainable practices.
As e-commerce grows globally, the need for sustainable packaging and transportation becomes central; tell us about trends in this direction and how DHL is leading in this realm.
As global e-commerce expands, the importance of sustainable packaging and transportation is increasingly becoming more evident. The logistics industry, grappling with the challenges of excessive packaging waste from materials like plastic shrink wrap, is pushed further by high return rates and specific demands from products such as meal kits that require extensive protective packaging.
In response to these challenges, the industry is shifting towards more sustainable solutions. Innovations in biodegradable materials are emerging, with companies adopting starch-based foams, tree pulp, and plastics derived from sugarcane. These are complemented by simpler, cost-effective strategies such as reusable packaging and incentives for consolidated deliveries, which significantly reduce waste.
DHL is leading this transformative shift by implementing advanced technologies to optimize packaging efficiency. We use algorithm-driven tools for precise box-sizing to maximize space utilization and minimize waste, as our research showed that 24% of package volume is empty space. It also accounts for up to 50% of otherwise unnecessary shipment space. Furthermore, DHL is transitioning from traditional paper labels to smart technologies like OLED and e-ink, enhancing package tracking and reducing the incidence of damaged goods returns.
In line with our company’s purpose to connect people and improve lives, DHL has also launched the GoTrade initiative, fostering sustainable and inclusive trade. This initiative targets expanding globalization’s reach and benefits. It is designed to increase the number and volume of SMEs trading across borders, including teaching them about the benefits of cross-border trade and assisting them with navigating the complexities of customs clearance.
In addition to these sustainability advances, our collaboration with the United Nations Industrial Development Organization (UNIDO) exemplifies our commitment to leveraging our network for broader social and economic impact. This partnership launched the “Innovation for Food Systems Transformation” global innovation challenge, aimed at supporting Agro-Tech and empowering small farmers and SMEs. This initiative serves as a beacon, seeking out trailblazing technology providers who have designed sustainable solutions within agribusiness supply chains and logistics, enabling participants to meet the demands of emerging markets, contribute to job creation, particularly in Africa, and reduce food waste in African markets.
DHL is also making substantial investments in sustainability beyond packaging. Over the next few years, DHL plans to invest 7 billion euros in measures to reduce its CO2e emissions. This includes expanding our electric vehicle fleet to cover 60% of last-mile deliveries and increasing the use of sustainable fuels across all transport modes to cover more than a third by 2030.
These efforts not only meet consumer demands for sustainability but also enhance operational efficiencies, significantly contributing to the development of a circular economy within the logistics sector.
Tell us about the DHL Innovation Center Network, giving examples of innovations that have emerged from these Centers and how they have helped DHL in particular and the logistics sector in general.
The DHL Innovation Center Network was initially established as a platform to showcase DHL’s logistics capabilities but has since evolved into a crucial hub for collaboration and idea exchange among industry experts, customers, and partners. These centers are instrumental in driving innovation within DHL and the broader logistics sector.
Our DHL Middle East and Africa (MEA) Innovation Center in Dubai, introduced in 2021, serves as a collaborative space where business leaders, logistics experts, academics, and startups develop innovative logistics solutions. The center showcases interactive exhibits on big data analytics and the Internet of Things (IoT), inspiring innovative approaches to logistics practices.
The DHL Innovation Center Network has been instrumental in fostering a culture of innovation across the logistics industry. A prime example of this is the DHL Fast Forward Challenge MEA. This flagship initiative serves as a testament to our dedication to finding and promoting groundbreaking solutions that tackle global sustainability issues. In its third edition this year, this event, historically held at the premises of the Innovation Center, will take place at the Museum of the Future in collaboration with the Dubai Future Foundation. The challenge provides a dynamic platform for thought leaders and innovators to collaborate and contribute to sustainable development efforts in the region. With each year, the challenge evolves, reflecting our enduring pursuit of excellence and sustainability in logistics.
Such initiatives from the DHL Innovation Centers have significantly contributed to advancing technological and operational efficiencies, not only for DHL but for the logistics industry at large, enhancing the way goods and information are managed and transported globally.
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
