Cover Story: Middle East Conflict Chokes Global Shipping, Aviation (Part 2)
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From Feb. 18 to March 19, it was Ramadan in the Middle East, the region’s most important religious and social holiday, which is also typically the biggest peak season for consumption and logistics. However, with the outbreak of the U.S.-Israel-Iran war on Feb. 28, everything changed.
“Before the war, the Middle East handled 500,000 to 600,000 parcels a day. Ramadan would normally bring a 50% increase, and key markets like Saudi Arabia could even see 100% growth,” said a customs clearance director at a leading Middle Eastern express delivery company.
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- U.S.-Israel-Iran war from Feb. 28 cut Middle East parcels to 10% of normal during Ramadan, logistics down 70%.
- China-Middle East trade projected >$500B in 2025; airspace/port closures halt flows.
- Alternative Gulf of Oman ports at 10% capacity, congested; Shanghai-Persian Gulf rates up 311% to $4,031/TEU.
1. Ramadan from February 18 to March 19 marked the Middle East's peak consumption and logistics season, but the U.S.-Israel-Iran war starting February 28 disrupted everything [para. 1].
2. Pre-war daily parcels handled 500,000-600,000, expected to rise 50% during Ramadan, with Saudi Arabia seeing 100% growth [para. 2].
3. Post-war, parcel volumes fell to 10% of normal, overall logistics dropped 70%, with severe e-commerce delays and customs backlogs [para. 3].
4. Cross-border e-commerce relies on air-mail to hubs; China-Middle East trade projected over $500 billion in 2025, a decade high [para. 4][para. 5].
5. Early conflict halted operations like a "circuit breaker" due to Kuwaiti and Bahraini airspace closures [para. 6].
6. Middle East imports all daily goods and durables, exports oil/chemicals; 50-day war caused historic energy disruptions impacting global chains [para. 7].
7. Stakeholders urge U.S.-Iran negotiations to restore hubs; alternatives use Gulf of Oman ports, but limited to 10% of normal volumes [para. 9][para. 10][para. 11].
8. Pre-war key ports like Dubai's Jebel Ali inaccessible; no ideal global alternatives, except Saudi Red Sea options [para. 12][para. 13].
9. Saudi allows Red Sea unloading, truck transit to neighbors with bonded zones [para. 15].
10. UAE uses Fujairah/Khor Fakkan for bonded road/rail/air to Jebel Ali, adding trains and 48 hourly flights [para. 16].
11. Oman promotes Sohar/Duqm/Salalah, electronic customs for GCC trucks [para. 17].
12. Actual options inadequate: Khor Fakkan/Fujairah/Sohar minor ports (<10% Hormuz capacity), congested with 1-2 week berthing waits [para. 19][para. 20][para. 21].
13. One firm processed 20,000 containers normally, <200 in March; April alternatives delayed 10 days, at 10-15% capacity [para. 22][para. 23][para. 24].
14. Land trucking limited, roads congested; UAE yards stacked, mandatory 3-day customs or high fees [para. 25][para. 26][para. 27].
15. Highways to Dubai/Abu Dhabi gridlocked; DHL reports escalating port congestion raising costs [para. 28][para. 29].
16. Freight rates surged: Dubai $2,000 to $6,000-7,000/FEU (3x); equals cargo value for $10,000 containers [para. 31][para. 32][para. 33].
17. Jeddah $2,000-3,000 to >$4,000/FEU; Shanghai-Persian Gulf $4,031/TEU vs. pre-war $980 (+311%) [para. 34][para. 35].
18. Container rates doubled, charter flights +30%; deliveries from 5 days to indefinite, but returns only 5-18% as demand persists [para. 36][para. 37].
(Word count: 498)
- Worldwide Logistics Group
- Worldwide Logistics Group is a Shanghai-based firm. Its president and CEO, Lin Jie, stated no ideal alternative routes exist amid Persian Gulf disruptions. Normally processing 20,000 containers, it handled under 200 in March, with April shipments via Fujairah/Khor Fakkan at 10-15% capacity, facing 10-day delays and road congestion.
- YQN
- YQN, a digital logistics provider, reports alternative ports (Khor Fakkan, Fujairah, Sohar) congested with <10% of normal Strait of Hormuz capacity, facing 1-2 week berthing delays. VP Lin Guanyu notes Dubai rates tripled from $2,000 to $6,000-$7,000/FEU, making freight costs rival cargo values and halting shipments. (58 words)
- DHL International Ltd.
- DHL International Ltd. noted in an April 14 client briefing that congestion at alternative ports is escalating, extending layover times for cargo transshipments and driving up detention and other charges.
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