Freight industry seeks review of current laws

DUBAI - The UAE needs to review the laws and regulations currently enforced to control the freight forwarding industry in the country and re-evaluate the market requirements, industry experts say.



By Jamila Qadir

Published: Tue 6 Jan 2004, 12:20 PM

Last updated: Thu 2 Apr 2015, 12:03 AM

The increase in the number of companies working in the field of freight forwarding is one of the challenges that encounters the freight industry in the country and requires strict and deliberated rules.

The UAE market is satiated, with some of these companies not being well qualified for the job and unable to provide the quality service, the experts said, adding that before issuing a license to any new freight forwarding company, the efficiency of the applicant must be carefully studied by the concerned authorities. The freight forwarding industry has been facing many challenges during the recent years, with one of them being the aftermath of 9/11 events and the other - the war and the current situation in Iraq.

The fact that all these developments have come shortly before the implementation of the new World Trade Organisation (WTO) rules, which will provide free cross-border flow of goods, having both advantages and disadvantages for the industry, adds to the severity of these challenges. Combined with the increased level of dependence on e-commerce, this can threaten the future of the cargo industry in the years to come.

Experts suggest that small freight forwarding companies will have to merge with bigger players if they want to be able to overcome the difficulties facing the industry and survive, especially with the implementation of the new WTO rules, which will come into force next year.

In the coming years, the freight industry in the country should further develop to go along with the qualitative and quantitative improvement in other economic sectors, they said, adding that it will require to establish new highly efficient freight forwarding companies capable to face the future challenges.


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