Green Logistics Innovation for Emerging Markets Driving Competitiveness and Shared Value 2025

Global logistics systems face five critical challenges FIGURE 1 Global logistics system faces five critical challenges, with emerging markets bearing the heaviest burdens.Challenges Trade tensions, export controls and regional conflicts disrupt supply chains and increase logistics costs. Geopolitical disruption and rising costsExample Red Sea crisis rerouted over 2,000 ships, adding 10–14 days per trip and extra $1 million in fuel costs; US–China tensions disrupt global logistics, driving costly shifts and market uncertainty. Ageing, underdeveloped and overstretched infrastructure hampers flow efficiency and worsens congestion and delays. Infrastructure gaps and operational inefficiency Empty miles have accounted for 15–20% of trucking miles, leading to wasted fuel, greater driver time, higher costs across the logistics chain and added road congestion. Companies face mounting pressure to reduce carbon footprint, comply with environmental regulations and adapt to intensifying climate extremes. Decarbonization pressure and climate risks72% of 44 ports or terminals suffer impact from extreme weather events, causing delays, disruptions in services and impacts on the physical structures of ports. The industry is confronting the dual challenge of attracting new talents and upskilling existing workforces for new technologies. Labour shortage and skills mismatchUnited Arab Emirates' infrastructure development has led to a 69% increase in demand for blue collar roles while hiring has declined, particularly in port operation and supply chain management. Customers demand faster, more flexible, reliable and transparent delivery services. Rising consumer expectations and service pressure Emerging markets are struggling to meet consumer demand (e.g. delivery in under two days).Example Example Example Example Source: The Business Standard; Atlas Institute for International Affairs; Reuters; The American Transportation Research Institute; UN Trade and Development (UNCTAD); Zawya. 7 Green Logistics Innovation for Emerging Markets: Driving Competitiveness and Shared Value