The Kuwait logistics and warehousing market has witnessed an increasing demand of maritime, aviation and land transport systems to ensure an efficient flow of resources and commodities within the country as well as to other countries globally. Kuwait is majorly focusing on improving 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 the logistics industry, the market has grown positively during the review period. The Kuwait logistics and warehousing market grew positively at a positive single digit CAGR during the review period 2012-2017.
The growth of freight forwarding in Kuwait was supported by development in major industries such as oil and gas, manufacturing, retail, wholesale, construction, agriculture and mining. The Kuwait market witnessed the entry of many foreign players as flexible policies were introduced by the government to boost the economic growth of the country.
There are approximately 55 courier companies in Kuwait which provides normal delivery service. The freight forwarding industry in the country is moderately fragmented with the presence of both domestic and international players in the industry. Companies in Kuwait have been focusing on providing data oriented solutions and other services for operational excellence, timely customer support, thus providing customer satisfaction and retention of customers.
The Asia flow corridor is the largest 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 period, Kuwait will witness the construction of many new roads and bridges which will aid against the traffic congestion problem in the country and positively affect the trucking industry, hence aiding domestic logistics.