Aramex UK, one of the UK’s leading international logistics providers, is heading into a new chapter as it leaves 2024 behind, a year that was marred by extensive supply chain disruption, rising cost pressures and port congestion.
In the past year, uncertainty has for the most part been front of mind for almost every industry, with the logistics sector certainly being no exception.
Yet Aramex UK has taken unrelenting turbulence and market volatility in its stride, by guiding clients through a challenging year while also taking measures to expand its reach by opening a new facility in Aberdeen to provide further support to new and existing clients within the region.
Few corners of the globe were exempt from the seismic shockwaves caused by geopolitical turbulence, extreme weather conditions and economic uncertainty experienced last year, which catapulted the logistics sector into yet another maelstrom, having only just quelled the widespread disruption caused by the Covid-19 pandemic.
The Red Sea Crisis was arguably the most high-profile issue which plagued the logistics industry over the past 12 months. Since late 2023, Houthi rebels began launching unrelenting attacks in the Red Sea against commercial vessels, causing ships to be diverted away from the Suez Canal, hindering world trade. In the UK alone, more than half of the nation’s exporters were directly impacted by the crisis.
Acting as a critical trade corridor for around 12 percent of global trade, representing around 30 percent of all global container traffic, the Red Sea is crucial for the movement of both raw materials and consumer goods.
With major shipping companies suspending services in the region and instead opting to reroute their vessels an extra 3,500 nautical miles around the fastest alternative route, the Cape of Good Hope, this resulted in an additional lead time of between 10 to 14 days.
At the peak of the crisis, average freight cost reportedly increased to as high as 250 to 300 percent above normal.
Rerouting of vessels also caused an uneven distribution of cargo across global ports, leading to further delays during a time when port operations were already strained due to labour shortages, extreme weather events and stricter environmental regulations.
Last year, supply chain technology solutions provider Beacon reported that between November 2023 and October 2024, average anchorage times at major European ports rose by 62 percent, reaching seven hours compared to the same period the previous year. Meanwhile, major ports in Asia experienced a 45 percent increase in average wait times, growing from 6.5 hours to 9.4 hours year-over-year.
Aramex UK has taken a proactive approach to overcoming supply chain challenges for its extensive client portfolio, primarily in the fashion and retail sector, namely by leveraging its vast network across 650 cities and 75 countries, along with multimodal solutions in order to mitigate delays for its clients last year.
Umar Butt, CEO of the UK and Europe at Aramex commented: “2024 was unique in so many ways, and on reflection was probably one of the most challenging periods the logistics industry has had to go through, with exception to the Covid years. The ongoing Russia-Ukraine war, conflict across the Middle East, the Red Sea Crisis, evolving trade policies, economic uncertainty, and unpredictable climate conditions have all come to a head at once, disrupting supply chains on multiple fronts. What followed has been rising freight rates and extensive bottlenecks at key ports and vessel shortages, largely as a result of a lack of availability due to ships being tied up on longer routes.
“Looking forward, this has placed the industry in new territory as the old ways of doing things are gone. Businesses have needed to quickly adapt their logistics strategies by proactively managing and preparing for what has become an increasingly volatile marketplace, rather than simply taking a reactive approach to issues as and when they occur. It’s been a case of having to become fluid in an ever-turbulent global landscape rather than relying on fixed methods or past practices that no longer apply or are now completely obsolete.
“From our own perspective, the past year allowed us to rewrite the script on how we approach logistics planning for our clients. Logistics now demands flexible, technology-driven methods that can respond to dynamic global challenges in real time, rather than responding to crises as they happen, and that’s what we endeavour to achieve. To ensure the movement of our clients’ goods flowed seamlessly with minimal delay last year, we championed the use of multimodal solutions to diversify transport operations by utilising a hybrid of air, sea and road freight where necessary to circumnavigate issues while keeping to pre-agreed delivery timescales.”
Umar continued: “Remaining proactive is crucial, which is a significant reason behind why we have looked to expand our reach into Scotland through acquiring a site in Aberdeen. Businesses in the UK have a real appetite to trade internationally and our goal for 2025 is to ensure that we give both SMEs and large businesses the tools to realise their ambitions, especially when it comes to expanding overseas during a time when commercial opportunities are emerging globally rather than just on domestic soil.”