Alternative routes grow for Middle East cargo
Alternative routes for Middle East cargo are currently sprouting like mushrooms. The closure of the Strait of Hormuz has accelerated the development of new logistics solutions. Shipping companies, rail companies and ports are looking for ways to keep cargo flows going despite sea blockades.
Where traditional sea routes grind to a halt, new corridors are emerging overland and via alternative seaports. This leads to a shift in logistics where speed, flexibility and improvisation are key.
Alternative routes via rail and land corridors
One of the most notable developments is the introduction of a new rail corridor in Saudi Arabia. Saudi Arabia Railways has established an international logistics link between ports on the Persian Gulf and the northern border with Jordan. Containers can continue to be transported to surrounding markets in the Middle East via this route.
This development is crucial as key ports such as Dammam and Jubail are currently difficult to access by sea. Using rail and land transport will still create a way out for goods that would otherwise remain stuck.
At the same time, attempts to leave by sea remain risky. Two large container ships from Cosco recently tried to leave the Strait of Hormuz, but had to abort their attempt. This underlines that alternative routes remain necessary for the time being.
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Alternative routes often consist of a combination of sea, rail and road transport, meaning that one shipment goes through several forms of transport before reaching its final destination.
Alternative routes via Gulf of Oman and land bridges
Shipping companies are also betting heavily on ports outside the Strait of Hormuz, such as Khorfakkan and Fujairah in the United Arab Emirates. From these ports, containers are transported overland via so-called 'bonded land bridges' to key logistics hubs such as Abu Dhabi and Jebel Ali.
From there, goods can still be distributed across the region, including to Saudi Arabia, Qatar and Kuwait. New transshipment routes are also being set up, for example between Oman and India, to reroute flows of goods.
Cosco has now resumed accepting container freight for the Middle East on the basis of these alternative routes, although for now this applies mainly to shipments from Asia.
Alternative routes growing but have limitations
Although the number of alternative routes is growing rapidly, there are obvious limitations. The region's infrastructure is not equipped to handle full shiploads via land. The number of available trucks and rail capacity is simply too limited to accommodate all volumes.
Therefore, these solutions are mainly used for urgent cargoes, such as food and medicine. According to market parties, there is enough capacity available for that for the time being, but for large-scale container flows it remains to be seen.
Meanwhile, new container services are also responding to the situation. Large shipping companies such as MSC, Maersk, CMA CGM and Hapag-Lloyd have set up new services via ports on the Red Sea. This attempts to shift some capacity and reduce the impact of the blockade.
For companies in logistics, this means that flexibility is more important than ever. Choosing the right route is no longer a standard decision, but depends on current circumstances. Read more about international transport solutions on the multimodal page.
Alternative routes are expected to continue to play an important role for the time being as long as the situation in the Middle East remains uncertain. The logistics sector thus shows that even under extreme conditions, new solutions are emerging to keep goods flows moving.
