The UAE is a world leader in trade and moving goods. Its important location between the East and West makes it a key place for air freight. The country’s air travel business is a main part of its economy because it’s like a doorway to the Middle East, Africa, and Asia, and it adds a lot to the country’s money. But with all this fast growth and central spot, there are some special problems that come up. For businesses and freight forwarders knowing about these problems and how to fix them is very important to stay ahead in this fast changing market.
This blog looks at the main problems for air cargo in the UAE. It talks about everything from hard to follow rules and shipping hold ups to problems that happen outside of the business. It also explains the helpful ways the UAE is fixing them.
What does the UAE’s Air Freight world look like?
Air freight in the UAE does more than just help with trade. It also helps the country’s economy get bigger in many ways. Because of amazing airports like Dubai International (DXB), Dubai World Central (DWC), and Abu Dhabi International (AUH), the air freight business has really taken off. For example, in 2024, the value of all air freight in the UAE was around $1.6 billion. Experts think it will grow to a strong $2.42 billion by 2033.
This growth is powered by a fast growing online shopping business, a jump in the need for special goods (like medicine and food that can go bad), and big government spending on things like roads and airports. The success of Freight Forwarders in the UAE is directly connected to how well the country can handle more and more goods in a smart way. However, along with this success come some tough issues that need clever ideas and fresh ways to handle them.
1. Inconvenience related to customs and regulations
One of the biggest air freight challenges in the UAE is how complicated customs rules are and how often the trade rules change. Even though the UAE has made big steps to improve things, the papers you need and the rules you have to follow change all the time, which can lead to major air delays. This can also increase costs for businesses and lead to issues with their supply chains. The problems are many:
a) Tons of paperwork
The process needs a lot of papers, including the business invoice, a paper of where the goods came from, a packing list, and an Airway Bill. A mistake or a missing piece of paper can stop a shipment for good.
b) Rules always change
The arrival of new rules, such as the “Advance Cargo Manifest” papers coming in September 2025, means you have to be ready to change what you do at all times. Not staying on top of these changes can lead to not following the rules.
c) Following rules for special goods
Shipping certain items like medicine or dangerous goods requires more paperwork from many different government offices, and that just makes the whole process tougher.
How to fix these inconveniences related to customs?
To solve customs problems, you can start by using new technology and working with people who know what they’re doing.
- Using online tools: When you use online tools to send and track your papers, you’ll make fewer mistakes and the process will be much quicker. A good example is using online systems for customs forms.
- Work with a good freight forwarder: A freight forwarding company with a lot of experience understands the local rules very well. They can handle your paperwork, make sure you’re following every rule, and give you live updates. This helps lower the chance of your package being held up.
- Plan ahead: Companies should keep up with new rules and have their papers ready long before they send a shipment. This kind of planning ahead is a simple but very useful way to lower risks.
2. Shipments getting held up
The huge amount of cargo that moves through the UAE’s airports can cause problems like delays on the ground, not enough warehouse space, and traffic jams, especially during busy times.
a) Delays on the ground
When things get backed up on the airport runway, maybe because there aren’t enough workers or machines, it can start a chain reaction. This causes air freight delays in the UAE that can affect the whole supply chain.
b) Not enough warehouse space
Finding enough and cheap storage for cargo, especially for things that are just passing through or need to be stored for a long time, is a constant problem.
c) Space is not always the same
The amount of space on cargo planes can change a lot. What you pay and the space on planes can change in a hurry, depending on what’s going on in the world, fuel prices, and how much people want to send.
How to fix these hold ups?
To fix these issues, you need a mix of working with different partners and using better airports and roads.
- Work with different partners: Businesses shouldn’t depend on just a single airline. Working with multiple airlines and using a mix of different air cargo services gives you flexibility and makes sure you have space even during shortages.
- Using special free zones: The UAE has special free zones that were created to fix these issues. These zones offer smoother processes, shipping routes that are connected, and modern buildings. For instance, a special route that links Jebel Ali Port to Al Maktoum Airport can reduce travel time to just a few minutes.
- Planning a route ahead of time: A smart freight forwarder uses the newest AI programs to find the best paths. This helps them stay away from busy places and guess if there will be hold ups before they occur.
3. Usage of new technology and Skills Gap
While the UAE is a leader in using new technology, adding these new solutions to the whole air freight world is a slow process. Many small businesses still handle things manually. Because of this, they’re more likely to make errors and get slowed down. A different issue is that the workers might not have the right skills. They need people who are trained to use and manage these new tools.
What’s the best way to use new tools and train people?
Technology is the key to making things work better and be more open in the air freight business.
- Using new AI and robots: Clever businesses are using AI to predict what people will want, discover the fastest paths, and handle paperwork automatically. Robots are also making warehouse work faster and cutting down on the need for workers.
- Seeing things in real time: New tools with smart labels can track your fragile items at all times, thanks to built-in GPS, temperature, and humidity sensors. This helps ensure the items stay safe and in good condition during the whole journey.
- Training your people: We need to put in a lot of effort to train workers so that we can fully use these new technologies. The UAE government and private companies are spending money on programs to teach employees about things like data and managing automated systems.
4. External Market Pressures and sudden Changes in the Economy
The air freight business in the UAE is not immune from world economic changes. Things like fuel prices that go up and down a lot, strong competition from other companies, and political issues can have a big effect on how a business operates and the money it earns.
- Fuel prices that change: The cost of jet fuel is a big part of air freight costs. Sudden jumps in price can directly impact what you pay for shipping, making it tough for businesses to plan their money.
- Strong competition: The UAE’s position as a world hub means there is a lot of competition from other companies. This can lead to low prices that squeeze the money made by smaller air cargo companies.
- Regional conflicts: Conflicts in nearby areas can affect air and trade routes. This might force you to change your shipping plans and could lead to surprise delays.
How to plan for such worse times?
Building a good supply chain is the best way to protect yourself from external pressures.
- Making contracts for a longer period: Making deals with airlines for a longer time can protect you from prices that change in a hurry.
- Using different shipping routes: It’s good to use different air cargo routes. While the UAE is a major hub, finding other trade paths and carriers can help lower the risks of relying on just one place.
- Managing risks: Having a solid plan for different problems is really important. This includes having a backup plan for both routes and carriers.
In short
The air freight business in the UAE shows the country’s big plan for an economy that is varied and connected to the world. Although the big problems with air cargo in the UAE are real, the country is facing them head on. By spending a lot of money on airports and roads and pushing for the use of new technology, it is creating a clear path to success. For any business working in this area, the secret to doing well is not to ignore these problems but to tackle them with smart ideas, new technology, and great partners. By doing this, businesses can make sure their air freight issues in the UAE are handled well, which will secure their spot in the future of world trade.
Struggling with an air freight challenge? Go ahead and fill out our “get a quote” form to get it solved easily. With over 24 years in the GCC region, Three Lines Shipping can help you out with any of your shipping challenges.