The impact of Hormuz's closure on global supply chain transportation

The impact of Hormuz's closure on global supply chain transportation

Energy supply disruptions: a "hardcore" test for the global economy

The Strait of Hormuz is an irreplaceable choke point for global energy trade. Its closure directly cuts off the export lifeline of Gulf oil-producing countries, dealing a "physical" blow to the global energy market.

Shipping diversion：Global shipping networks forced to restructure

With the avoidance of Red Sea and Suez Canal routes, the global shipping industry is being forced into a costly restructuring, primarily manifested in the following aspects:

Major route disruptions: Due to security risks, major global shipping companies, including MSC, Maersk, CMA CGM, and COSCO Shipping, have suspended operations in the region and are avoiding the Red Sea and Suez Canal.

Key hub shutdowns: The transshipment function of Dubai's Jebel Ali Port, the world's tenth largest container port, has been paralyzed, cutting off cargo transshipment to dozens of countries, including East Africa and India.

Forced detour around the Cape of Good Hope: Ships are forced to detour around the Cape of Good Hope in Africa, resulting in an increase of approximately 10 days in voyages and a roughly 30% increase in operating costs.

Immediate cost spikes:

Freight Rates: Very Large Crude Carrier (VLCC) freight rates have surged to new highs.

Insurance Premiums: War risk surcharges have been activated, leading to a significant increase in insurance premiums.

Marine Fuel: Rising oil prices have directly driven up marine fuel costs, further increasing operating expenses.

As of March 2, 2026, the overall situation regarding container liner calls in the Middle East is characterized by widespread shutdowns at core hubs, normal operations at some ports, and disruptions at two major shipping arteries. The following is a summary of the latest status by region:

I. Persian Gulf / Strait of Hormuz (Core Impact Zone)

1. Completely Suspended Operations (No Container Liners Calling)

UAE - Jebel Ali Port: The largest container hub in the Middle East, a fire caused by debris from an airstrike has led DP World to announce a complete shutdown, with all loading and unloading halted.

Bahrain Ports: All port activities suspended, including pilotage services.

Oman - Duqm Port: Suspended operations due to a drone attack.

Iran Ports (Abbas, Khomeini, etc.): The Strait of Hormuz is blocked, and no ships dare to dock.

Israel - Eilat Port: The only port on the Red Sea, permanently closed.

2. Normal Operations (Calling Available)

UAE: Sharjah Port, Khor Fakkan Port, Fujairah Port, and Ras Al Khaimah Port are operating at full capacity.

Kuwait: Shuaibai, Al-Ahmadi, and other ports are open, with only enhanced security.

Qatar: Ras Lafan and Mesaied ports are operating, but traffic is reduced and GPS is interfered with.

Oman: Sohar, Mina Al Fahal, and Salalah ports are operating normally.

Saudi Arabia: Jeddah, Dammam, Jubail, etc., are all operating normally.

3. Restricted Operations

UAE - Ruwais Port: Security upgraded to ISPS Level 2, operating but with increased risk.

II. Red Sea/Strait of Bab el-Mandeb (Second Battlefield)

Yemen's Houthi rebels: Announced the resumption of attacks in the Red Sea on February 28, supporting Iran.

Shipping company response: Maersk, MSC, CMA CGM, etc., have all suspended Red Sea/Suez Canal routes, detouring around the Cape of Good Hope.

Available ports of call: Jeddah, Saudi Arabia, and Port Sultan, Sudan, etc., remain open, but there are no direct liner services; transshipment via the Cape of Good Hope is required.

III. Current Status of Shipping Routes (Decisive Impact)

Strait of Hormuz: Effectively blocked. Approximately 170 container ships (450,000 TEU) are stranded. MSC, Maersk, CMA CGM, Hapag-Lloyd, and other carriers have all suspended passage, forcing vessels to turn back or detour.

The Bab el-Mandeb Strait/Red Sea: Completely disrupted. Asia-Europe routes are forced to detour around the Cape of Good Hope, adding approximately 10 days to the journey and causing freight rates to surge.

A new charge will be imposed from March 2: Emergency Conflict Surcharge

Emergency Conflict Surcharge (ECS)

All ports which require crossing the Gulf of Hormuz - USD 1500,Teu

All ports which require the crossing of Bab El Mandeb - USD 2000/Teu

USD 4,000 per Reefer or Special Equipment.

Scope:

Applicable for cargo moving from/to and transshipped: Iraq, Bahrain, kKuwait, Yemen, Qatar, Oman,

United Arab Emirates, Kingdom of Saudi Arabia, Jordan, Egypt (Alexandria/Sokhna), Djibouti, Sudan,

Turkey, Libya, Syria.

Regional Impact: Asia as a "Hardest-Hit Area" and its Global Transmission

Heavily Dependent Countries: Over 90% of Japan's crude oil imports, approximately 70% of South Korea's, and 60% of India's oil imports pass through this strait.

Most Vulnerable Countries: Thailand's net oil imports account for 4.7% of its GDP, making it the most vulnerable country in Asia to oil price shocks. Pakistan and Bangladesh face power outage risks due to limited LNG reserves and low purchasing flexibility.

Economic Impact: Nomura Research Institute predicts that if oil prices rise to $140 per barrel, Japan's GDP will decline by 0.65%, and inflation will rise by 1.14%.

China's Situation: Although approximately 40% of China's oil imports pass through this strait, resulting in significant risk exposure, its approximately 7.6 million tons of LNG reserves and strategic petroleum reserves provide a relatively strong short-term buffer.

Consumer Goods and Logistics Delays:

Exports of German automobiles, French agricultural products and pharmaceuticals, and Italian food and ceramics have all been disrupted.

E-commerce platforms such as Amazon, Temu, and Xiyin have warned of order delays.

The aviation industry is affected: Middle Eastern airports, which are hubs for routes between Europe, Asia, and Africa, are experiencing a decline in passenger numbers, while rising fuel costs are squeezing the profits of companies such as Japan Airlines.

Rising ocean freight costs are causing a shift in cargo exports towards rail or truck transport, leading to a shortage of rail space. You can contact Viputrans in advance to reserve a space if you have any transport needs.

Lora Yang     E-mail: sales02@viputrans.com    SKYPE|WECHAT|WHATSAPP|MOB:+86 13424468029