Dubai will restrict imports of cargo into its international airport for six days from Tuesday to clear a backlog caused by “extraordinarily high” volumes of inbound shipments.
Dnata, the cargo handling arm of government-owned airline group Emirates, said the restrictions would also include transit cargo en route to other destinations in the United Arab Emirates. Certain categories of essential freight would be exempted.
“We are currently working around the clock to clear the backlog of unprocessed cargo at Dubai International Airport, caused by extraordinarily high volumes of inbound cargo to Dubai, and will endeavour to resume normal operations at the earliest,” a dnata spokesperson told the Financial Times. “We apologise for any inconvenience caused to our customers during this unprecedented time.”
Dubai, a regional trade, tourism and financial hub, has been dragged into global supply chain chaos two weeks after the opening of the delayed Expo 2020 world fair, where 192 nations are participating in a massive event that runs until the end of March.
The Gulf emirate, which kept its economy more open than its peers during the coronavirus pandemic, has witnessed a sharp recovery in recent months with an influx of wealthy investors snapping up luxury property.
Logistics executives blamed the cargo logjam on labour shortages, saying newly trained staff are being brought in to deal with the surging volumes.
Emirates Group reported a $6bn loss and slashed almost a third of its workforce in its past financial year as travel restrictions grounded much of its fleet. Dnata, which also manages ground handling and catering, reduced headcount by 29 per cent to about 34,000 staff.
Cargo operations only declined about 5 per cent until the end of March as freighter activity, including repurposed passenger cabins loaded with cargo, grew in locations such as the US and Australia.
In recent months, Emirates has been expanding its route network, opening more flights to Europe, the US and Africa. The airline expects to restore 70 per cent of its capacity by the end of 2021.
Sultan bin Sulayem, chair of Dubai ports operator DP World, earlier this week said global supply chains could remain clogged for two years as the world struggles to ease bottlenecks caused by an international system overly reliant on China.
In DP World’s home market of Dubai, traders are facing delays in deliveries because of the worldwide supply chain crunch and a lack of empty containers for maritime cargo, he said.
But the efficient wholesale market in Dubai was helping shippers to secure enough containers and customers would be able to “accommodate” such delays, he added.
Source: Economy - ft.com
