Middle East logistics facing continued disruptions; Traffic through the Strait of Hormuz remains significantly limited; Alternative hubs support supply chain continuity; Global shipping conditions are characterized by rerouting, port congestion and rising freight rates

 

16.03

The United Arab Emirates' (UAE) major port and oil storage facility in Fujairah, as well as Dubai International Airport, were affected by drone-related incidents amid ongoing regional tensions impacting transport and energy infrastructure.
A fire was reported in the port and industrial zone at Fujairah, one of the largest oil storage hubs in the region. Flights were temporarily suspended on 16.03 following an incident near the airport linked to drone activity.

Source: https://www.bbc.com/news/articles/crl4gxgkkylo

 

16.03

The Saudi Ports Authority (Mawani) has announced the launch of the new shipping route REDEX by CMA CGM at Jeddah Islamic Port.

Saudi Arabia’s Mawani introduces new service to connect Jeddah Islamic Port to four key regional, global hubs. New route links Saudi Arabia to Malta Freeport, Port Said, Alexandria, and Aqaba

Source: https://economymiddleeast.com/news/saudi-arabias-mawani-introduces-new-service-to-connect-jeddah-islamic-port-to-four-key-regional-global-hubs-redex/

 

18.03

Hormuz Crisis increasing maritime claim complexity

Recent developments in the Middle East are producing risks including issues such as damage to maritime transport, ports and terminals, and interruptions to supply routes by air, land, or sea, according to Gallagher Bassett Company W K Webster (WKW).

Source: https://www.captiveinternational.com/hormuz-crisis-increasing-maritime-claim-complexity

 

18.03

According to Lloyd List, ports of United Arab Emirates, Kuwait, Oman, Egypt, Pakistan remain open and are operating as usual, however, activity levels at some ports are lower than pre-disruption levels, Qatar – some operations suspended. New surcharges are being introduced. Airspace across most Middle East Gulf countries is reopening on a restricted basis.

• RAK Ports Group will implement a Marine Risk Surcharge applicable to all vessels calling at RAK Ports’ ports, harbours, anchorages and approaches.
• Airspace of Kuweit closed temporarily.
• Qatar: Al Shaheen Terminal and Halul Island Terminal — Operations suspended until further notice.

Source: https://www.lloydslist.com/LL1156647/Middle-East-port-update-Wednesday-March-18

 

19.03

Incident reported at Aramco refinery in Yanbu

Saudi Aramco’s SAMREF refinery in the Red Sea port of Yanbu was affected by an aerial incident

Source: https://news.az/news/iranian-attack-targets-aramco-refinery-in-yanbu

 

19.03

CMA CGM deploys emergency multimodal routes to bypass the Strait of Hormuz

CMA CGM offers logistics corridors serving: the main hubs of the United Arab Emirates (Khalifa, Jebel Ali, Sharjah) other countries bordering the Arabian Gulf through a combination of regional land and maritime transport.

Source: https://container-news.com/cma-cgm-launches-emergency-multimodal-solutions-to-bypass-strait-of-hormuz/

19.03

Meaning: Strait disruption impacts on Food and Agriculture markets.

Ti&Upply considers the impact of the situation in the Strait on the food and fertilizer markets. Since marine operators have suspended part of reefer bookings to the region, which means the cold chain for meat, fruit and vegetables is under pressure. The Strait is also an important route for the supply of fertilizers.

Source: https://ti-insight.com/briefs/food-insecurity-in-the-gcc/

 

 

Congestions and Freight Rates

 

16.03

The Drewry World Container Index (WCI) increased 8% for the last week, mainly due to a sharp rise in rates on the Asia–Europe route, alongside gains on the Transpacific route.

While double-digit growth was observed on the Transpacific route last week, the Asia–Europe route recorded a double-digit increase this week.

Sources: https://container-news.com/drewrys-world-container-index-surges-8-on-asia-europe-rate-gains/

https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry

 

18.03

Initial disruption to container supply chains related to the Middle East situation appears to have eased, but rates remain elevated.

According to the consultant Linerlytica, Singapore saw the biggest impact of the initial disruption, but congestion is clearing after delays peaked at 3.5 days.
Analytics and benchmarking platform Xeneta notes an increase in rates of 11–22% on leading routes from Asia since 28 Feb.

Source: https://www.seatrade-maritime.com/containers/container-port-congestion-eases-after-initial-iran-shock