"Kuwait Freight Transport Report Q3 2010" is now available at Fast Market Research

July 10, 2010 - PRLog -- Freight transport and logistics companies have had to deal with the twin threats of sluggish trade and negative press over the quarter, with Kuwait's total trade for 2010 set to grow by just 1% year on year (yo- y) according to our Country Risk desk forecasts, following a decline in 2009, which saw the country's total trade fall by an estimated 6.67%.

While freight transport and logistics companies in Kuwait are expected to see out this lull in trade we fear the negative press with accusations of fraud levelled at some Kuwaiti freight companies will have a much more lasting effect on the sector.

The majority of the negative press has centred around Agility, which was accused by the US government of overcharging the US military on supply contracts for the US Army based in Kuwait and Iraq. The company have reportedly reached a settlement with the US government, but has lost the US military as a client.

This is a negative outcome for both Agility and Kuwaiti logistic companies. A large percentage of Agility's revenue come from its US Army contract and in the current market of trade slowly recovery after its dramatic fall in 2009 new contracts are few and far between, especially for companies that have been tarred with fraud charges.

The bad press surrounding Agility may also have a fall out impact on other Kuwaiti logistics firms. Kuwait and Gulf Link Transport (KGL) was in the running for US military contracts, following the Agility fraud case, which saw logistics contracts for the US army re-tendered, but lost out to its rival the UAE-based Anham, KGL has stated that it has filed an objection of the awarding of the contract, stating that Anham failed to meet the contracts criteria.

Worryingly, evidence of fraud in the Kuwaiti logistics sector has not been confined to one company with Kuwait's communications minister Mohammad al-Baseeri stating in March 2010, that he had formed a committee to look into allegations of widespread corruption at Kuwait's flag carrier Kuwait Airways, the parent company of Kuwait Airways Cargo.

BMI therefore asserts that that Kuwait's freight transport and logistics sector has two aims to accomplish in the midterm, firstly weathering the country's sluggish trade recovery and rebuilding the sector when trade volumes recover and also to rebuild the sectors reputation, which in BMI's opinion could stall the recovery as clients look for companies that have not been tarnished with allegations of corruption.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/71678_kuwait_freight_transport...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Kuwait Freight Transport Industry SWOT
- Kuwait Political SWOT
- Kuwait Economic SWOT
- Kuwait Business Environment SWOT
Market Overview
- Air
- Road
- Rail
Industry Trends And Developments
- Multi-Model And Logistics
- Air
- Rail
Global Oil Products Price Outlook
- Table: Oil Product Price Assumptions, Q409-Q410 (US$/bbl)
- Table: Oil Product Price Data And Forecasts, 2007-2014 (US$/bbl)
Industry Forecast
- Air
- Table: Air Freight - Kuwait International Airport, 2007-2014
- Maritime
- Table: Maritime Freight, 2007-2014
- Trade
- Table: Trade Overview, 2007-2014
- Table: Key Trade Indicators, 2007-2014
- Table: Kuwait's Main Import Partners, 2002-2008 (US$mn)
- Table: Kuwait's Main Export Partners, 2002-2008 (US$mn)
Company Profiles
- Agility
- Kuwait Airways Corporation (KAC)
BMI Methodology
- How We Generate Our Industry Forecasts
- Transport Industry
- Sources

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