Shipping capacity is returning to Red Sea while rates from China to Jeddah and Khor al Fakkan break Covid-19 records

The Red Sea and Strait of Hormuz have been affected by the ongoing Middle Eastern conflict, impacting ocean shipping routes. However, capacity is returning to the Red Sea, with August 2026 seeing a 152% increase compared to the same period a year ago. Still, capacity levels are only 23% of pre-crisis numbers.

The reopening of the Red Sea is seen as a significant factor in the ocean freight market, while service changes pose supply chain risks for shippers. Not all carriers are returning to the region, making decisions on which routes to take crucial.

Meanwhile, the Strait of Hormuz has been closed for over six months, leading shippers to rely on alternative routes through Jeddah and Khor al Fakkan. Spot rates have surged, surpassing pre-Covid peaks and reaching new record highs. Costs and transit times have both increased, posing challenges for shippers in the Gulf region.