Gulf Exports Reroute Around Hormuz Blockade
As the conflict between the United States and Iran continues for the sixth month, the landscape of Middle East export logistics is changing. With access to the Strait of Hormuz becoming difficult, export companies are utilizing detours such as alternative ports. In this process, the transportation period is increasing by up to several months and ...
As the U.S.-Iran conflict enters its sixth month, the Middle East's export logistics are being disrupted. Companies are rerouting shipments around the Strait of Hormuz, causing increased transportation times and freight costs. Only nine out of 24 major Gulf Cooperation Council ports were operating normally in early September, with key hubs like Jebel Ali in the UAE and Dammam in Saudi Arabia facing operational restrictions.
Companies are using outer ports and overland transport to bypass the Hormuz blockage, but this leads to significantly longer delivery times, sometimes up to four and a half months. The cost burden on domestic exporters is mounting, with the Shanghai Containerized Freight Index soaring to 3409.6 in August, nearly doubling since February.
South Korea's exports to the Middle East dropped 15% in August compared to the same period last year, reaching $1.19 billion. In response, the Korea Trade-Investment Promotion Agency is expanding support for affected exporters, increasing support for overseas joint logistics centers and exploring alternative markets to reduce dependence on the Middle East.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.