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As competition in the ocean and air cargo sector stiffens across the region, Sandeep Sahae, senior general manager of Damco Middle East explains how a logistics provider with a global presence can add value to supply chain operations.
What was the principal driver behind the merger of Maersk Logistics and Damco Sea and Air?
Maersk Logistics acquired Damco Sea & Air in 2005 in connection with the acquisition of P&O Nedlloyd, an Anglo-Dutch worldwide ocean-going container shipping line. Damco Sea & Air was the forwarding arm of P&O Nedlloyd and was established in 1988 but operated independently through a combination of wholly owned offices and a network of third party agents. This year the entire entity began trading under the Damco brand. Both companies have a long history of offering customers ocean freight, airfreight, and land-based services such as trucking, customs clearance, and document management.
How can a logistics provider add value to its service?
A logistics service provider today acts more as a consultant to the customer by advising and offering solutions which will save overall costs and cuts down lead times. Value additions cover a whole range of services offered by the provider, and an ideal fit would be to deliver a one-stop solution. A personal, long-term relationship with each customer is the foundation for continued and profitable business. We work with all major ocean carriers and airlines plus a host of local landside service providers such as trucking and customs house brokers as well as a broad range of global and local service providers. This allows us to put together a tailor-made package to meet the individual requirements of the client.
Has the logistics sector in the Middle East grown significantly in recent years?
We have seen a growth of about 20% in the logistics sector in Middle East with multinationals and local establishments setting up and stepping up operations across the region.
What are the major challenges facing logistics providers in the region?
Space for both ocean and air shipments has been a challenge which has materialised because of a sudden surge in volume, which has been difficult to forecast at times. Local procedures in some countries have also been of concern, especially for custom clearance. The timely availability of equipment and qualified personnel for land transportation is another key factor which adds to the overall lead times.
Is the marketplace for logistics provision crowded in the Middle East?
There are various logistics service providers which have their own set of tailored services catering to their target clients. However, not all of them have the required setup and network to provide a truly global service which Damco can provide through its network in 90 countries, incorporating ocean, airfreight and landside services.
Are you planning to expand the Damco operation across the region?
We already have offices in the UAE, Oman, Qatar, Kuwait, Bahrain and Saudi Arabia, along with Jordan. Our first priority is to expand our services within these countries across the Middle East.
What differentiate Damco from other logistics providers?
It is a freight forwarder, offering flexible, localised, and personalised services to meet the varied requirements of our customers. We believe that a personal, long-term relationship with each customer is the foundation for future success, both regionally and worldwide. Thanks to our heritage on the international logistics scene we can also secure preferantial rates with air and ocean carriers that a smaller operation could not.
How can logistics providers improve supply chain management?
Through an open dialogue and a close working relationship we can make big contributions to improving solutions for land, air and sea transportation. Finding cost-effective solutions is our job, and one we excel at.
