Since 1973, air freight has revolutionized the world, becoming an essential transportation method for the logistics sector. The guaranteed fast delivery for time-sensitive packages across the world by means of air freight has made it a valuable addition to the logistics sector. It has allowed companies, through commercial or chartered carriers, to effectively be a part of global trade.
The international freight supply chain is currently experiencing a monumental shift. This shift is driven by the increase in cross-border demand, the scarcity of containers, and the COVID-19 pandemic. The logistics sector has never been in such a need for organization, digitization, and faster, more cost-efficient methods.
Several emerging trends are transforming tomorrow’s freight industry. The increase in e-commerce demand following the start of the pandemic has allowed several companies and brands to expand, which compelled air freight companies to adapt to this rapid change. By the end of 2019, e-commerce equaled 15% of air shipments. This number is expected to further increase in the upcoming couple of years. These rapid changes and increase in demand are obliging the air freight industry to seek new technologies for cost-effective and quick services that cater to customers’ needs.
Supplementary to Saudi Arabia’s Vision 2030, the kingdom has been working on developing its transport sector. Saudi Crown Prince Mohammed bin Salman announced in June the launch of the National Transport and Logistics strategy, which focuses on infrastructure development and the inauguration of platforms and logistics areas across the country. This strategy will enhance Saudi Arabia’s global position in the logistics sector to become the fifth country in global air cargo traffic (sea freight service), reaching over 250 destinations. The announcement also included the launch of a new national carrier with additional air freight capabilities that will increase its magnitude up to 4.5 million tons.
The kingdom has also launched the Integrated Logistics Bonded Zone, which is a new economic zone with attractive regulations for international companies. This will allow the shipment of goods through secure and rapid transportation methods and via reputable cargo shipping companies like NTF and logistics company in Saudi Arabia . The Saudi land transport company has been investing strategically in the logistics sector by providing freight and warehousing services across the kingdom. It focuses on meeting customer needs, supporting business growth, and punctually delivering high-quality services and goods.
The demand for logistics providers is increasing on a daily basis. Customers’ everyday needs require today’s logistics companies to be low-cost, fast, and efficient. With the help of technology, robotics, and automated systems, freight forwarding can be transformed to increase package delivery speed and accuracy, while maintaining a low-cost approach. The pandemic has provided an opportunity for the development of the cargo and logistics sectors. As air freight demand increases as part of the rise of e-commerce, the global economy will rapidly recover. However, governments will have to follow in Saudi Arabia’s footsteps by providing support for the advancement and growth of international trade, which will no doubt reflect on the local economy.