UAE shipping costs surge 300% to 500% after maritime disruptions

Dubai: Shipping expenses for cargo entering Gulf markets have skyrocketed, with costs now ranging from three to five times their previous levels, according to the UAE National Association of Freight and Logistics. The association attributes this surge to a combination of war-risk surcharges, conflict-related fees, additional fuel charges, and the need to transport containers along longer or more intricate routes.

While the basic ocean freight rate itself has not risen by the same extent, shipping bills have been sharply increased by multiple factors. Ahmed Abdul Razak, vice-chairman of the association and general manager of Maltrans Emirates, clarified that land transport costs have also seen significant hikes. He emphasized that the actual price of shipping goods has not increased as widely reported, but rather, the rise is mainly due to additional charges associated with moving containers.

Disruptions to maritime routes have compelled shipping companies to reroute cargo through alternative ports, leading to extra expenses such as customs clearance, road transport, and fuel costs. Moreover, shipping lines have introduced provisions enabling vessels to discharge cargo at the nearest suitable port when their planned routes are obstructed, further adding to handling and onward-transport costs.

The reduced shipping capacity into the Gulf region is also contributing to the higher prices, with some sailings lacking available space and others being canceled. Shipping companies are increasingly moving bookings to later vessels on certain routes, resulting in considerable variations in costs among Gulf ports based on the shipping line, route, and whether containers require additional sea or road transport.

Despite the disruptions, essential goods remain accessible in the UAE, with priority given to clearing key commodities. The extensive network of ports, roads, and logistics infrastructure in the country has facilitated cargo redirection through multiple regional gateways, thereby maintaining the flow of goods into the market.