Global logistics companies call for diversified supply chains

Global supply chains need to be diversified and digitised as we move ahead, according to top global logistic majors at the B20 summit here. Speaking at a session on Inclusive global value chains (GVCs) for Resilient Global Trade and Investment, Group Chairman & Chief Executive Officer, DP World, Sultan Ahmed Bin Sulayem said, "The COVID-19 pandemic showed the resilience of global supply chains."

"Nearshoring was mentioned in 2013-14, but when covid happened, people realized we cannot rely on product produced in one part and shipped to other world and I mean China and Far east, it is clear Manufacturers have to come to consumers," he said.

While countries like India have been successful in getting global manufacturers like Apple to invest, significant reforms are needed to encourage a shift towards becoming an export-oriented nation.


Sulayem said there is an urgent need to reform the Customs clearance framework if a country wants to become an export hub. "If you want to become an export country, then the laws have to be changed. You have to be more liberal, to allow people to export and fast track exports, remove many of the restrictions and Customs," he said.

Highlighting how there have been many changes in the world of logistics over the last decade, Robert Maersk Uggla, Chairman of the Board at A.P Moller-Maersk said, "The pattern of governance, geopolitical fragmentation has had significant impact on the complexity of supply chain." He added that some of his clients have undertaken significant diversification in this period.