With the Strait of Hormuz shut, logistics operators are coming up with alternatives to keep trade moving.
Shipping giants including Cosco, Hapag-Lloyd, Maersk, and MSC have halted new voyages into the Gulf, leaving some of the busiest ports in the world idle, with billions of dollars worth of trade disrupted. In one workaround, Abu Dhabi Ports and Dubai-based DP World are offering land routes to move containers from the UAE’s eastern ports of Fujairah and Khorfakkan on the Gulf of Oman to Jebel Ali and Khalifa Port for customs clearance.
Oman also stands to benefit as an alternate trade hub: Its ports of Salalah, Sohar, and, to a lesser extent, Duqm, are emerging as safe nodes to bring in goods. Gulf countries import most of their food and manufactured products, and rely on open shipping lanes to export — in addition to hydrocarbons — aluminum, fertilizers, and other goods. Routes from Saudi Arabia’s Red Sea ports offer another overland option to the Gulf’s major cities.