‎SAL sees limited impact from regional tensions

‎SAL sees limited impact from regional tensions ‎SAL sees limited impact from regional tensions

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Omar Talal Hariri, CEO of SAL Saudi Logistics Services Co. (SAL)

Omar Talal Hariri, CEO of SAL Saudi Logistics Services Co. (SAL), said regional tensions had only a limited and temporary impact on the company, attributing this to SAL’s extensive operating network and the team’s proactive crisis management, which enabled it to reroute cargo while ensuring service continuity and business operations.

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In an interview with Argaam, Hariri said the tensions mainly affected cargo routing and capacity management, adding that airlines had to deal with regional airspace restrictions, leading to flight rescheduling and temporary suspensions.

He noted that regional supply chains were also affected by higher freight, insurance and fuel costs, as well as disruptions to some maritime shipping routes.

Hariri said cargo handling volumes reached about 239 million kilograms in the second quarter, broadly unchanged from the first quarter and up 9% year-on-year (YoY) while the increase reflects a recovery in activity after temporary geopolitical disruptions affected cargo routes and capacity, particularly in March.

He added that preliminary indicators for June and early July point to continued business momentum, supported by sustained import demand and ongoing customer inventory build-up amid uncertainty over renewed regional developments.

Hariri expects the cargo ground handling business to remain resilient, supported by solid demand, an improved cargo mix and stronger pricing, while the logistics segment is seen growing on higher warehouse occupancy and the expansion of contract logistics and land transportation connectivity services.

 

Omar Talal Hariri, CEO of SAL Saudi Logistics Services Co. (SAL)

Omar Talal Hariri, CEO of SAL Saudi Logistics Services Co. (SAL), said regional tensions had only a limited and temporary impact on the company, attributing this to SAL’s extensive operating network and the team’s proactive crisis management, which enabled it to reroute cargo while ensuring service continuity and business operations.

In an interview with Argaam, Hariri said the tensions mainly affected cargo routing and capacity management, adding that airlines had to deal with regional airspace restrictions, leading to flight rescheduling and temporary suspensions.

He noted that regional supply chains were also affected by higher freight, insurance and fuel costs, as well as disruptions to some maritime shipping routes.

Hariri said cargo handling volumes reached about 239 million kilograms in the second quarter, broadly unchanged from the first quarter and up 9% year-on-year (YoY) while the increase reflects a recovery in activity after temporary geopolitical disruptions affected cargo routes and capacity, particularly in March.

He added that preliminary indicators for June and early July point to continued business momentum, supported by sustained import demand and ongoing customer inventory build-up amid uncertainty over renewed regional developments.

Hariri expects the cargo ground handling business to remain resilient, supported by solid demand, an improved cargo mix and stronger pricing, while the logistics segment is seen growing on higher warehouse occupancy and the expansion of contract logistics and land transportation connectivity services.

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