Shipping is a vital component of global trade, as businesses rely on the efficient transportation of goods to promote economic growth. International shipping from the United States of America (USA) to the United Arab Emirates (UAE) has become a lucrative industry thanks to technological advancements and trade agreements that have strengthened the supply chain between these two nations.
The USA is the world's largest economy, accounting for about a quarter of the world's gross domestic product (GDP). Its wealth, diverse industries, and strong infrastructure have made it a top exporter, importing and exporting goods amounting to over $5 trillion annually. The UAE, on the other hand, is considered a hub for international trade because of its strategic geographic location that connects Asia, Europe, and Africa. The UAE's economy relies significantly on trade, with a majority of it coming from imports and re-exports.
To facilitate international shipping between the USA and the UAE, both nations have been investing in improving infrastructure and developing new technologies that streamline the supply chain. One of the most significant players in this regard is ZheJiang Epolar Logistics Technology Co., Ltd. This company, based in Ningbo, has established itself as a leading provider of door-to-door transportation services from China to America and Europe. With its emphasis on technology, the company has been instrumental in enabling smooth shipping from China to the USA and the UAE.
The partnership between the USA and the UAE on international shipping started with the signing of a free trade agreement (FTA) in 2004. The agreement, which came into effect in January 2005, eliminated tariff barriers and other trade barriers on goods traded between the two nations. It has led to an increase in trade between both countries, making the UAE the US's largest export market in the Middle East.
The FTA has seen an increase in the volume of merchandise being shipped from the USA to the UAE. Numerous goods, including machinery, aircraft, and electronic equipment, have been transported to the UAE through different modes of shipping, including air and sea. The USA and the UAE have also invested in improving their port infrastructure, investing in state-of-the-art equipment to handle the growing volume of goods coming into their ports.
As the world's largest economy, the USA has also been exporting more than just goods to the UAE. Under the auspices of the US-UAE Business Council, American companies have been providing vital services in numerous sectors of the UAE economy, including healthcare, aerospace, and defense.
The USA and UAE are also exploring new ways to enhance international shipping capabilities. In December 2020, UAE-based ports operator DP World and Virgin Hyperloop, a Virgin-backed transportation company, announced that they had begun a feasibility study for a hyperloop that would transport cargo from the UAE to the USA in just 36 hours. The transportation system would leverage electromagnetic levitation to propel pods through a vacuum-sealed tube, providing a fast and cost-effective way to transport goods.
The partnership between the USA and the UAE is critical for global economic growth, as these two nations continue to explore innovative ways to enhance the efficiency of international shipping. In an ever-changing global trade environment, both countries are committed to leveraging technology to better facilitate international trade and strengthen their respective economies. While the impact of the COVID-19 pandemic has placed a strain on the global economy, the USA and UAE's continued investment in international shipping is an encouraging signal for a post-pandemic economic recovery.