Kuwait Logistics and Warehousing Market Growth Is Positively Propelled by Growing Oil and Gas Shipments: Ken Research


The growth of freight forwarding in Kuwait was assisted by development in key industries such as oil and gas, manufacturing, retail, wholesale, construction, agriculture and mining. The Kuwait market observed the entry of several foreign players as flexible policies were introduced by the government to boost the economic growth of the region.  Sea (Inland Waterway and maritime) registered in freight movement in freight forwarding market in 2017 owing to foremost cargo transportation taking place through ocean such as oil and gas. Air underwritten the second highest revenue share to the freight forwarding market majorly propelled by the express shipments in the country. On the other hand, road underwritten the least share and is generally utilized for the domestic shipments. 

According to the report analysis, ‘Kuwait Logistics and Warehousing Market Outlook to 2022 – By Freight Forwarding/ Transportation, Warehousing and Value Added Services, E-commerce Logistics, Express Delivery, Third Party Logisticsstates that Kuwait logistics and warehousing market has observed increasing requirement of maritime, aviation and land transport systems to confirm the efficient flow of resources and commodities within the country as well as to other countries around the globe. Kuwait is majorly aiming on enhancing its trade relations which led to the growth in import and export in terms of value and volume. As trade has a direct correlation with logistics industry, the market has developed positively during the assess period. Kuwait logistics and warehousing market developed positively at a positive single digit CAGR during the review period 2012-2017.

International freight forwarding registered the freight forwarding industry in Kuwait due to the free trade agreements of GCC with European Free Trade Association and Trade and Agreement Framework Agreement with the US.  There are around 55 courier companies in Kuwait which delivers the normal delivery service. The freight forwarding industry in the country is temperately fragmented with the existence of both domestic and international players in the industry.

Companies in the Kuwait have been aiming towards delivering the data oriented solutions and other services for operational excellence, timely customer assistance and the effective adherence of the consumers’ expectations, thus delivering the customer satisfaction and retain customers.

Asia flow corridor is the greatest contributor in terms of revenue in the freight forwarding market. It was followed by Europe, North America, GCC and other flow corridors. Over the forecast duration, the Kuwait will witness construction of several new roads and bridges which will aid against the traffic congestion issue in the country and positively affect the trucking industry, hence helping the domestic logistics.

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The Kuwait E-commerce industry has observed a positive growth over the past three years with an increment in internet penetration into the country. In terms of total number of shipments, E-commerce merchant through in-house logistics have captured the majority of the market share in terms of the total number of shipments during the year 2017. It was observed that international E-commerce companies prefer to outsource logistics to 3PL companies to avoid the obstacles in establishing their own functions. 

Same day delivery within five hours has registered the market in terms of number of orders owing to growing focus of the companies on delivering the better services coupled with increasing customer requirements for better service. The E-commerce logistics industry was witnessed to be concentrated with the existence of major players such as Aramex, DHL and FedEx covering around majority of the market share during 2017.

For More Information, refer to below link: –

Kuwait Logistics and Warehousing Market Research Report

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Ken Research

Ankur Gupta, Head Marketing & Communications