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.
Hong Kong, China: In its latest move to achieve net zero, Hong Kong Air Cargo Terminals Limited (Hactl) – Hong Kong’s largest independent handler – has launched a voluntary Green Terminal Pact (GTP) to engage its SuperTerminal 1 tenants in reducing its carbon footprint and creating an environmentally-conscious workplace.
The GTP aims to help Hactl and its tenants reduce energy consumption, and prepare for Hong Kong’s Municipal Solid Waste (MSW) Charging Scheme, by providing a system of quantitative measurements. Hactl has installed smart meters in participating tenants’ offices to help track energy consumption and has organized numerous briefings on the new waste charging scheme. Hactl has installed an additional recycling machine at its terminal and will continue to collect waste for recycling to enable tenants to better manage and reduce their waste.
A key element of the GTP is a Performance Reward Scheme, in which participating tenants set targets for reduced energy consumption and waste, and increased recycling. Successful achievement of targets will earn trophies, and vouchers which can be used by tenants’ staff to buy a wide range of goods from local social enterprises. Hactl is the first member of the Hong Kong International Airport business community to launch a sustainability-themed tenant engagement programme, embodying such a performance reward scheme.
The GTP is voluntary, and all tenants engaged in proactive sustainability measures are eligible to participate. Tenants occupying over 70% of SuperTerminal 1’s rented office space have already committed to signing the Pact.
The GTP was officially launched at SuperTerminal 1 on 20th March, attended by staff and tenants. The launch event comprised two elements: a ceremony to set the initiative in motion, followed by the first in a series of quarterly sustainability events for tenants.
Hactl Chief Executive Wilson Kwong said: “We are very proud to launch this exciting new initiative and play our part in making Hong Kong International Airport a leader in aviation industry sustainability. We are very grateful to our tenants for their highly positive reception of the Green Terminal Pact, which will help ensure success in achieving its aims.”
In 2018, Hactl launched its Green Terminal program with the aim of creating the world’s greenest air cargo handling operation. Annual Green Weeks held over recent years have reinforced Hactl’s sustainability message to all staff, and encouraged their active participation through changes to their behaviour and lifestyle. The most recent Green Week also invited tenants’ active participation, and announced the establishment of the GTP.
Kuwait: Agility Public Warehousing Company KSCP (Agility) announced that its Board of Directors has approved an interim cash dividend distribution of KD 25.5 million (USD 83 million), equivalent to 10 fls per share. Agility’s Board will meet on March 30 to discuss the full-year financial results and dividends.
Shareholders approved paying dividends on an interim basis and listing shares of certain Agility assets on foreign stock exchanges at prior general assembly meetings held on May 30 and June 7, 2023.
Agility’s Board has also approved an in-kind dividend distribution estimated at KD 800 million (USD 2.6 billion), representing shares forming 49% of the issued share capital of a subsidiary, Agility Global PLC, which is pursuing a listing on the Abu Dhabi Securities Exchange (ADX).
Agility Global PLC is a wholly owned subsidiary of Agility that manages certain company operations and assets, notably Menzies Aviation, the company’s investment in Tristar Transport LLC, the operations of Agility Logistics Parks outside Kuwait, and the DSV investment.
Following the distribution, Agility, a listed company on the Kuwait Stock Exchange and Dubai Financial Market, will remain the controlling shareholder in Agility Global PLC with a 51% stake. Agility will continue to consolidate accounts for Agility Global PLC even after listing.
“Over the last 25 years, Agility has grown to encompass global and regional companies that lead in their sectors. We’re proud of the value we’ve created for our 14,000 shareholders. Since the company was privatized in 1997, shareholder value has grown by a multiple of nearly 20 times,” said Tarek Sultan, Agility’s Vice Chairman.
Today’s dividend distribution is an additional step in that journey. The listing of Agility Global PLC crystallizes the value of assets for shareholders and gives the company access to additional capital markets to fund future growth. Agility continues to be a global company proudly based in Kuwait, and will continue to invest and grow locally as well as globally,” he added.
DX listing is expected May 2, 2024 subject to fulfilling certain regulatory requirements
Lauterach, Austria: Gebrüder Weiss calls upon cyclists again this year to participate in the company’s international cycling campaign “GWcycles”.
From March 25, cycling enthusiasts all over the world will be pedaling for all they are worth. The goal of the sports competition in 2024 is ambitious: Cycling to the moon and back. International participants have until September 30 to cover the distance of 768,800 kilometers.
As in previous years, GWcycles combines this sports challenge with environmental protection: the international transport company will plant another 7,000 trees in Nicaragua for the kilometers covered by the participants. In the two previous rounds, a total of 13,000 trees have been planted in Togo and Nicaragua. By planting these corporate forests, Gebrüder Weiss makes an important and active contribution to a climate-friendly future.
“At Gebrüder Weiss, we believe in sustainable mobility, and as a global logistics company, we are enthusiastic about moving things together,” Frank Haas, Head of Corporate Brand Strategy & Communications at Gebrüder Weiss, describes the essential motivation and targets of GWcycles. “So far, our cycling community has accomplished spectacular results each year; they enjoy exercising and actively contributing to environmental protection. We are looking forward to this year’s competition.”
Following the previous year’s campaign, which ended with a surprising success – more than 15 times around the world – we’re challenging the participants of the 2024 competition to cycle to the moon and back. The main prize that Gebrüder Weiss offers to the top 300 cyclists is a gravel bike, as well as other attractive prizes for seven different challenges.
Anyone can participate in the competition. The number of kilometers completed will be recorded and calculated in a cycling app. Click here to go to the relevant app: www.gw-world.com/de/cycling-around-the-world. Simply download, register, and get started!
Miami, Florida: The International Air Cargo Association (TIACA) recently launched a platform aimed at finding available training solutions throughout the industry – the Air Cargo Training Library.
The Air Cargo Training Library provides a convenient global repository for training courses from many different training providers. The listings will be submitted by members and partner educational institutions that offer training on technology, sustainability, safety and security, management, logistics, live animals, industry knowledge, global trade, dangerous goods and air cargo.
“We are very excited to launch this platform as we see that it links directly with our Sustainability Roadmap and continues to drive forward a sustainable future. The platform promotes quality education and decent work that in turn is tied to economic growth. We look forward to watching this library expand,” said Steven Polmans, TIACA Chair.
The platform is open access and available to all industry stakeholders who want to view the training courses available. Members have the opportunity to list several training courses free of charge; while non-members will pay a small fee to list their courses.
“Today’s air cargo industry is complex with ever-changing customer expectations, regulatory requirements and evolving industry standards. High quality training is a key enabler to keep staff engaged, empowered and motivated to build a great career within the industry. The problem is where to find the training and that is where the Air Cargo Training Library comes in. It is a convenient search tool that lists training for the industry. We invite members and training partners to submit their courses to the portal,” said Glyn Hughes, Director General of TIACA.
Abu Dhabi, UAE–Oman and Etihad Rail Company (OERC), the developer and operator of the UAE-Oman Rail Network signed a Memorandum of Understanding (MoU) with Jindal Shadeed Iron & Steel (Jindal), a leading integrated steel producer in the GCC, to establish a sustainable end-to-end transport logistics solution between Jindal’s steel complex at Sohar Port and the United Arab Emirates (UAE), via the UAE-Oman Rail Network.
The MoU will allow Jindal to annually transport up to 4 million tons of raw materials and finished products from its steel complex at Sohar Port to the UAE’s thriving markets. Under the terms of the agreement, OERC will leverage its state-of-the-art rail network to support Jindal in optimizing operational integration through facilitated loading and unloading processes while guaranteeing rolling stock and facilities’ requirements of iron ore and steel.
Commenting on the agreement, Mohammed bin Zahran Al Mahrouqi, Deputy CEO of OERC, said: “Our partnership with Jindal Shadeed Group reinforces Oman and Etihad Rail Company’s commitment to improving logistics services to meet the future needs and expectations of our customers by providing comprehensive solutions and stimulating the growth of various industrial sectors within Oman and the UAE. Furthermore, the MoU will enable Jindal to enhance its supply chain efficiency, benefiting from the UAE-Oman Rail Network’s fast, cost-effective, and sustainable services.”
For his part, Harsha Shetty, CEO of Jindal, said: “This is an important milestone for our company as we look forward to further expanding the reach of our high-quality, industry-leading products in the region and beyond. Our ability to seamlessly transport nearly 4 million tons of raw material will greatly help us in our operations, supporting our ambition to reduce our carbon footprint.”
Through this collaboration, Jindal will not only streamline its transportation and logistics operations but also further advance its sustainability objectives and strengthen its green value chain. OERC will ensure an environmentally friendly transportation and logistics solution through the Oman-UAE Rail Network, thus, contributing to the reduction of CO2 emissions in Oman and the UAE, in line with their national goals of net-zero carbon emissions by 2050.
Dubai, UAE: Aramex, a leading global provider of comprehensive logistics and transportation solutions, has introduced a fleet of fully electric motorcycles to its last-mile delivery vehicles in the United Arab Emirates (UAE).
Aramex says the initiative is part of its long-term strategic goal to achieve a total fleet of 98% Electric Vehicles (EVs) by 2030, aligned with the Science Based Targets initiative (SBTi) target that it is committed to. It also underscores the company’s pioneering goal to make a substantial contribution to reducing greenhouse gas (GHG) emissions in last-mile logistics.
The announcement comes as the UAE hosted COP28 climate conference in Dubai last year and recently extended the Year of Sustainability to 2024. It reflects Aramex’s ambitious goals to lower its operational carbon footprint, achieve carbon neutrality by 2030, and become net-zero by 2050. To achieve these goals, the company has also been investing in a wide range of innovative and environmentally friendly logistics solutions, such as drones and bots for last-mile deliveries. The adoption of electric mobility further reinforces Aramex’s strategy to expand its clean-energy mobility fleet in the country, aligning with the UAE’s goal of achieving net zero by 2050.
The rollout of e-bikes complements the introduction of fully electric vans to Aramex’s last-mile delivery fleet in the UAE in October last year and in Amman, Jordan, in 2017. Additionally, Aramex has been progressively testing the introduction of EVs in other regional markets, such as the Kingdom of Saudi Arabia.
Commenting on the launch, Samer Marei, Vice President – GCC at Aramex, said: “We are proud to set a new standard for sustainable and efficient logistics transportation in the region with the introduction of e-bikes as part of our last-mile delivery fleet in the UAE. This fantastic new initiative, complementing our recent expansion of a fully electric vehicles fleet, marks a crucial step towards accelerating the adoption of green mile logistics across the region. By incorporating e-bikes into our operations, we not only contribute to reducing emissions but also enhance efficiency, cost-effectiveness, and future readiness. At Aramex, pioneering the future of logistics is ingrained in our DNA, and the inclusion of e-bikes alongside our EV fleet is a testament to that commitment. As leaders in sustainability and innovation, this combined fleet underscores our unwavering dedication to delivering a better and more sustainable future in the markets where we operate. We are thrilled to announce this new initiative, especially as the world reflects on COP28 in Dubai and as we continue to scale up our efforts in embracing electric vehicles for a cleaner and greener tomorrow.”
The e-bikes are poised to catalyze a transformative effect on Aramex’s operations, delivering both environmental and operational benefits. Beyond reducing carbon footprint, it promises cost savings through reduced fuel expenses. Additionally, it will enhance efficiency and flexibility in the last-mile delivery network, positioning Aramex as future-ready by embracing innovative and sustainable delivery methods, ultimately enabling better service for its valuable customers.
The introduction of e-mobility is closely aligned with Aramex’s ‘Delivering Good’ initiative, which, among other things, prioritizes investing, innovating, and working towards reducing the negative environmental impact. It includes finding new ways to increase efficiency, lower energy consumption, minimize material use, and manage the company’s overall environmental footprint.
The e-bikes were introduced after intensive testing of several different models and manufacturers, and Aramex finalized the selected model based on its enduring performance and stability, particularly in local weather conditions.
Brussels, Belgium: The European Union’s new customs pre-arrival safety and security system – Import Control System 2 (ICS2) – will introduce a new process for the entry of goods by maritime and inland waterways, road, and rail in the EU by 3 June 2024.
This is the third phase or release of the implementation of the new system that will extend safety and security data reporting requirements to all modes of transport. Similar requirements for air transportation of goods were enacted earlier this year.
With this third release, maritime and inland waterways, road and rail carriers will also need to provide data on goods sent to or through the EU before their arrival, through a complete Entry Summary Declaration (ENS). This obligation also concerns postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistics providers. In certain circumstances, final consignees established in the EU will also have to submit ENS data to ICS2.
Traders are strongly advised to prepare in advance for Release 3 to avoid the risk of delays and non-compliance. Affected businesses will be required to ensure they collect accurate and complete data from their clients, update their IT systems and operational processes and provide adequate training to their staff.
Since 11 December 2023, traders must also complete a self-conformance test before connecting to ICS2, to verify their ability to access and exchange messages with customs authorities.
EU Member States will grant authorization, upon request, to the affected traders to gradually connect to ICS2 within a time-limited deployment window. Member States can grant the deployment window anytime within the following timeframes: from 3 June 2024 to 4 December 2024 (maritime and inland waterway carriers); from 4 December 2024 to 1 April 2025 (maritime and inland waterway house level filers); and from 1 April 2025 to 1 September 2025 (road and rail carriers). If traders are not ready on time, and do not provide the data required under ICS2, goods will be stopped at the EU borders and will not be cleared by the customs authorities.
The EU is a major player in international trade – it accounts for around 14 % of the world’s trade in goods. By collecting safety and security data, EU customs authorities will be able to detect risks earlier and intervene at the most appropriate point in the supply chain to keep trade safe for the EU and its citizens
Frankfurt, Germany: With new hires in Indonesia, Saudi Arabia, the UAE, and the USA, dteq Transport Engineering Solutions is deepening its international footprint, doubling its worldwide workforce in just seven years—2016 through 2023.
The company hired new engineers in 2023 as part of its growth strategy and to further improve its client proximity in the Middle East, Southeast Asia, and North America. This year, its growth course will continue with new hires in engineering, business development, and administration as well as with new office openings in the Asia Pacific region.
“The goal of our continuous growth strategy is to serve our clients across various industries in all
transport engineering challenges, even better in real-time and locally—from the early stages until the close-out of a project—and to develop new emerging markets, business potential and client segments. Starting in 2016 with 18 engineering and project experts, we are proud to have more than doubled to over 40 employees in Germany, the USA, the Philippines, Taiwan, Brazil, the UAE, Saudi Arabia and Indonesia today—within just seven years,” said Boris Dykiert, Commercial Director at dteq, Germany.
Hagen Hennig, Technical Director at dteq, Germany, explains,“Projects and their technical requirements, as well as clients’ requirements, are becoming increasingly complex all over the world. To meet these, dteq continuously invests in skill sets like naval architecture and mechanical engineering, hiring experts within the individual disciplines of engineering but also investing in software and trainings. This wide array of skill sets and the multidisciplinary teams enable dteq to provide a unique combination in the project transport engineering field—from tailor-made transport and marine engineering solutions, surveying and supervision services, to project consulting and execution.”
LONDON HEATHROW: B&H Worldwide, a global leader in aerospace and aviation logistics, announced its successful acquisition of a new contract with Flair Airlines, a leading Canadian ultra-low-cost carrier headquartered in Edmonton, Alberta.
Flair Airlines, known for its scheduled passenger and chartered services with a fleet of Boeing 737 aircraft, has selected B&H Worldwide as its trusted logistics partner. Under this agreement, B&H Worldwide will provide critical support to Flair Airlines, including Aircraft on Ground (AOG) assistance, Import/Export Clearance, and deliveries. The scope of the partnership extends to cover key regions, with a focus on Canada, the USA, and Australia.
Gary Wilson, Group Managing Director of B&H Worldwide, expressed his enthusiasm, saying, “We are honoured to have been chosen by Flair Airlines to provide logistics services. This partnership signifies our commitment to delivering high-quality solutions to the aerospace industry. B&H Worldwide is poised to support Flair Airlines’ operations seamlessly and contribute to their success.”
To ensure a smooth and efficient import/export process, B&H Worldwide has developed a customized Standard Operating Procedure (SOP). This SOP not only facilitates a streamlined logistics process but also outlines key contacts and support points tailored to Flair Airlines’ specific needs. Furthermore, it establishes service standards that align with the airline’s shipment requirements.
Gary Wilson added, “Our bespoke service is a testament to our dedication to meeting the unique demands of Flair Airlines. We are committed to providing not only exceptional logistics services but also a partnership built on trust and collaboration.”
B&H Worldwide will leverage their philosophy of custom processes to support Flair Airlines in their logistics operations, working closely with their supply chain team. The first successful logistics project, a COMAT shipment, included a total of 17 pallets containing aviation parts (non-Dangerous Goods), 737 main wheels, 737 nose wheels, 737 brake in a clamshell, and Inflight training equipment.
In a notable milestone, Flair Airlines loaded their own Boeing 737-800 MAX aircraft with materials destined for Australia. The 737-800 MAX aircraft departed from Calgary, Canada, and successfully landed in Coolangatta, Australia. B&H Worldwide played a crucial role in facilitating the clearance process in Australia.
Vladan Nikolic, Director of Material Supply Chain for Flair Airlines, expressed his satisfaction with B&H Worldwide’s performance, stating, “The B&H Australian team’s professionalism and responsiveness during the first logistics project was impressive. We have full confidence in their capabilities, and I look forward to continued collaboration at this high service level.”
B&H Worldwide says it remains committed to delivering top-tier logistics solutions, and the partnership with Flair Airlines further solidifies the company’s position as a trusted leader in aerospace and aviation logistics.
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