Dr. Raman Kumar, Managing Director, Al-Futtaim Logistics 
Smart Logistics

When Trade Routes Changed, Al-Futtaim Logistics Keeps the Gulf Moving

How Al-Futtaim Logistics used alternative gateways, rapid mobilisation and regional coordination to mitigate 80% of potential supply delays across four markets

TLME News Service

For logistics providers, resilience is measured when established routes no longer operate as expected. During a period of significant regional developments, Al-Futtaim Logistics faced precisely that test: protecting customer supply flows across the GCC while congestion, capacity pressure and shifting trade patterns disrupted normal movement.

Over five months, the company activated contingency plans, doubled its operational taskforces across the GCC, deployed additional personnel at multiple ports, and established alternative trade corridors across four markets.

The response mitigated approximately 80% of delays that could otherwise have been extended to six months.

The UAE as The Anchor

A central feature of the response was the rerouting of cargo through the UAE. Nearly 58% of cargo destined for Bahrain, KSA, Kuwait and Qatar moved through UAE logistics corridors, with Khorfakkan and Fujairah emerging as critical alternative gateways.

The shift highlighted the strategic value of the UAE's geography, infrastructure, and multi-port network. It also showed how East Coast ports can support GCC cargo flows when conventional routes are under pressure.

A Corridor Network Built for Flexibility

The wider network expanded beyond the UAE. After 13 years, Port Sultan Qaboos in Oman was reactivated for finished vehicle operations after 13 years of commercial vessel inactivity. Within seven weeks, nearly five-digit vehicle volumes moved through the new Oman-UAE corridor.

Yanbu Port in Saudi Arabia provided further routing flexibility, while Hambantota International Port in Sri Lanka served as a strategic transhipment hub outside the Gulf, feeding cargo into the UAE through feeder vessel partners.

“We do not wait for stability. We help create it", says Dr. Raman Kumar, Managing Director, Al-Futtaim Logistics

Operational Performance Under Pressure

The alternative routing strategy was matched by execution at port and yard level. Al-Futtaim Logistics achieved vehicle handling rates 41% above the market benchmark, setting a new operational record for cars handled per hour and supporting the restoration of OEM production capacity to 100%.

The operating environment remained demanding. Truck shortages increased vehicle transportation costs by approximately 50% in certain markets, while border congestion added three to four days to transit times on some routes. The company addressed these challenges through proactive planning, stakeholder coordination, real-time operational visibility, and rapid mobilisation.

From Contingency to Long-term Capability

The response points to a broader change in regional logistics. Alternative gateways are no longer simply emergency options. The routes activated through the UAE's East Coast ports, Oman, Saudi Arabia and Sri Lanka have demonstrated the viability of a multi-gateway model for GCC supply chains.

Al-Futtaim Logistics expects these corridors to remain part of the regional network. As GCC trade volumes grow, demand is likely to increase supply chain solutions that combine flexibility, technology-enabled visibility and geographic diversification.

For customers, the lesson is practical: resilience comes from designing options before disruption occurs. For the region, the outcome reinforces the UAE's role as a logistics anchor and shows what coordinated action across ports, customs authorities, governments, and logistics providers can achieve.

AT A GLANCE

  • Al-Futtaim Logistics operates across the UAE, Saudi Arabia, Oman and Kuwait.

  • Its facility footprint covers 1.56 million square meters.

  • Its freight network spans more than 150 countries.

  • Core sectors include automotive finished vehicles, aerospace, retail, food and beverage, and industrial equipment.

  • Operations include round-the-clock and Aircraft on Ground services.

Read More: Al-Futtaim Logistics Expands Aerospace Logistics into Saudi Arabia and Oman