UAE’s strategic position connecting Asia, Europe and Africa enables it to serve as a transhipment hub integral to its cross-border logistics capabilities. The nation’s continued investment into infrastructure, technology and trade facilitation, the UAE solidifies its position as a leading global logistics and transhipment hub which drives both regional and international trade.
-Dr. Shehara Rizly
Cross border logistics are all about moving goods across international borders encompassing various stages such as transportation, warehousing, customs clearance and distribution. For it to be effective, cross-border logistics are crucial for global trade, requiring an understanding of international regulations, customs procedures, and efficient coordination between multiple stakeholders.
The UAE, particularly Dubai, has emerged as a leading transshipment hub in global logistics. Positioned strategically between Asia, Europe, and Africa, the UAE offers unparalleled connectivity through its world-class ports like Jebel Ali and major airports such as Dubai International and Al Maktoum International. These facilities are equipped with advanced infrastructure, technology, and a robust legal framework, making the UAE an ideal hub for re-exporting goods to neighbouring regions.
Enhanced global connectivity, efficient gains, increased trade volumes and, importantly, advanced port infrastructure contribute significantly for the emergence as a transhipment hub for cross-border logistics, hence the advantage for the UAE is its two key ports Jebel Ali in Dubai and Khalifa port in Abu Dhabi, which are considered the most advanced in the world. The numerous free zones integration offers businesses a range of incentives, such as tax exemptions, full foreign ownership and streamlined customs processes play a pivotal role for cross border logistics. Another key factor is location, as in the UAE both free zones are in proximity to major ports and airports, which is an edge for the goods to be easily imported, processed and re-exported without significant regulatory barriers. Digitalisation holds an important role in today’s operations.
Since the UAE has invested on digital solutions to enhance cross-border logistics with various platforms such as Dubai Trade, provides a single window for both trade and logistics services to simplify customs clearance and other cross-border procedures. Blockchain technology and digital trade corridors streamline operations, reduce delays and ensure transparency in transhipment processes.
The UAE is not only one of the busiest hubs but also most efficient transshipment hubs globally offering its varied facilities such as storage, advanced cargo handling technologies and their commitment to integrate environmentally friendly practices.
The UAE continues to diversify its strategies prioritising the development of logistics and transportation sectors, hence its 2030 UAE National logistics strategy propel further the country’s logistics capabilities, attract more foreign investment and enhance its efficiencies of cross-border logistics.
Advanced technology and innovation streamline operations
Leslie Farnworth, General Manager, Management, Scan Global Logistics
Challenges of cross border logistics are customs clearances at the borders, differing regulations without notice, and documentation needs. They require accurate labelling, compliance with global trade laws, proper customs inspections, and payments of taxes, duties, and potential delays at borders during festivals and peak season.
However, technology and innovation streamline operations through automated tracking, real-time data analytics, blockchain for transparent supply chains, and digital platforms for seamless communication, reducing errors, route optimisation all of which enhances decision-making in logistics and supply chain management.
Sustainable cross-border logistics involve using eco-friendly packaging, optimising routes to reduce emissions, employing electric or low-emission vehicles, collaborating with green-certified partners, implementing carbon offset programmes, and leveraging technology for efficient, resource-saving operations.
The UAE is a transshipment hub due to its location between Asia, Europe, and Africa, world-class ports such as Jebel Ali, advanced infrastructure, free trade zones, and logistics networks, facilitating global trade connectivity.”
Utilising Artificial Intelligence to reduce carbon footprint
Yousif Najim, CEO, Orbit Logistics
Technology and innovation streamline cross-border shipping by automating customs clearance, providing real-time tracking, enhancing communication, optimising logistics with AI-driven route planning, and using blockchain for secure, transparent transactions. These tools reduce delays, errors, and costs in shipping operations.
Challenges in cross-border shipments include navigating complex customs regulations, ensuring accurate documentation, dealing with varying tariff and tax rates, managing logistics for different transport modes, handling potential delays, and maintaining clear communication with multiple stakeholders across borders.
To minimise shipping costs for cross border shipments we must first understand tariff and tax regulations, utilising FTAs, ensuring accurate documentation, shipping in bulk, negotiating with carriers, using freight forwarders, optimising packaging, consolidating shipments, and staying updated on regulations.
The UAE is a transshipment hub due to its geographical location, world-class ports such as Jebel Ali, advanced logistics infrastructure, FTZs such as DAFZA and trade policies facilitate global trade connectivity.”
Robust infrastructure plays pivotal role in transshipment logistics
Mutasim Abuhmaidan, General Manager, HellmannATS
The region boasts a robust infrastructure, including advanced ports, free zones, warehouses, roads, and transport assets. However, one of the challenges is the clearance processes within the GCC, which, although improved, still requires attention. The regulations and visa requirements add a layer of complexity to operations.
We minimise costs by understanding the export and import regulations of destination countries and planning routes to leverage free zones and official facilities. This approach helps us avoid tariffs and double duty payments.
Advancements in online workflows within regional government entities, such as customs, have streamlined the clearance process. Improved tracking technologies play a significant role in ensuring shipment safety and optimising lead times, thereby enhancing efficiency. These measures help minimise wasted space and reduce idle time for trucks, contributing to efficient operations.”
Technology advancements key for growth of cross-border shipments
A.S. Azimi, CEO, Azimi Cargo and Logistics
Better understanding of cargo, compliance process, shipment duration, cost of customs and other clearances, possible causes of delays, understanding of the markets and packing requirements are the challenges in the cross-border shipments. Freight & transportation cost can be minimised with advice from professionals.
Proper classification of goods with proper documentation will help in correct tariff rates, duties, taxes and the customer will avoid penalties for wrong declarations. Technology has simplified the process by integrating various process steps and with mapping, provide utmost clarity on various stages.
Better process flow, simplification of tariffs, better technology, seminars and training programmes for improving staff skillsets will improve the cross-border logistics operations. UAE is a transshipment hub with world class logistical infrastructure facilities, where various countries are assured of speedy services.”
Environmental impact through sustainable practices balances costs
Prashanth BalakrishnanGM, Orient Cargo
Cross-border shipments in the UAE encounter challenges, such as navigating complex customs regulations and ensuring compliance with local and global laws. Flexibility to adapt to changes, accurate tracking, and delivery updates are crucial.
Managing environmental impact through sustainable practices and balancing costs, while building partnerships are key to efficient cross-border logistics operations. Minimising costs to optimise customs classification ensures accurate tariff applications. Consolidate shipments to lower handling fees and improve efficiency.
Optimise shipping routes to reduce transportation costs and fuel consumption. Negotiate favourable terms with suppliers for better rates. Utilise cost-management software to track control expenses. Utilising energy-efficient transportation helps reduce fuel consumption and emissions. Adopting eco-friendly packaging materials improves recyclability. Real-time tracking systems provide up-to-date information on shipment status.”
We accord top priority to accurate documentation, customs clearance
Mazhar Marzook, GSA Cargo Manager, UAE, ATTA Cargo
The main challenges are managing the tariffs, delays and regulations. And such a shot has to compliance with regulations, with accurate documentation and customs clearance. By obtaining adhoc BSA rates blocks a particular sector with the carrier and operating from different terminals where one can avail special rates on airport cargo handlings.
With real-time tracking, we inform customers about the movement of their goods, that reduces delays by optimising the routes. By using eco-friendly packaging, we ensure sustainable cross border operations. The UAE’s strategic location, advanced infrastructure and supportive trade regulations make it an ideal transshipment hub for such movements.”
Lot of work being done in slashing emissions in sustainable logistics
Rizwan Iqbal, Manager, Road Freight, DSV Global Transport and Logistics Dubai
Cross-border road movements within the region have always been the main source of income for transportation companies located within the GCC, be it a small-sized carrier or large-scale asset owners, stringent procedures here at KSA borders (Batha), a gateway to the GCC countries, serves as a major challenge for transporters; obtaining an intime appointment for trucks to enter Batha borders referred to as ‘Fassah’, strict screening of pharma and temperature-controlled goods.
Sustainable logistics means to minimise carbon footprint in logistics, which is certainly the future, but there’s not a lot of work being done to implement them. UAE serves as a transshipment hub for air and sea imports. Products are re-exported from here to different countries, especially from Jabel Ali to the GCC countries. Ever since the Red Sea crisis, the UAE is serving more as cross docking hub for pharma, healthcare, FMCG, automotive and automotive spare parts among others rather than transporting them to other countries.”
Geo-political volatility impacts trade flow, costs, transportation
Antonio Pacciolla, Ground and Rail Leader IMEA, CEVA Logistics
There are two major cross-border challenges in the GCC region. First, are the changes in customs rules leading to congestion, demurrages, and fees. Second, is the geo-political volatility in neighbouring countries, impacting trade flow and the transportation market. We are always alert and abide by all customs processes and requirements, including any new developments, to avoid delays and extra costs.
If we foresee any challenges, we seek alternative compliant solutions. We implemented a cutting-edge transportation management system that connects our customers, vendors, and drivers, which has streamlined our operations to reduce errors, time, and costs.
A global ground and rail sustainability roadmap being developed, thus supporting sustainability objectives across sub-regions and giving due considering the local market conditions. UAE is a proven transshipment hub for GCC and the MEA region. It offers easy ocean, air, and ground transport linkage, along with stable macroeconomic and legal conditions.”
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