More and more alternative routes for Middle East freight

New logistics corridors created by disruptions

Continuing tensions in the Middle East and restricted passage through the Strait of Hormuz are creating more and more alternative routes for cargo traffic. Shipping companies and governments are actively seeking solutions to keep freight flows in and out of the region going.

Saudi Arabia Railways, for example, has established a new international logistics corridor. This rail link links ports on the Persian Gulf, such as Dammam and Jubail, to the border with Jordan. This creates an alternative route towards northern markets outside the traditional maritime corridors.

Marine restrictions force alternatives

The situation at sea remains uncertain. Attempts by COSCO Shipping container ships to leave the Persian Gulf via the Strait of Hormuz have failed for now. Ships are being turned back or choosing to change their route, leading to delays and congestion in the region.

These constraints increase pressure on logistics planners to implement alternative solutions and better spread risk.
Land bridges and new hubs on the rise

Shipping companies are increasingly betting on so-called "land bridges. Through ports on the Gulf of Oman, such as Khorfakkan and Fujairah, containers are transported overland to major hubs such as Abu Dhabi and Jebel Ali. From there, goods can be further distributed within the region.

In addition, new connections are emerging via Oman and India, with transshipment playing an important role. These routes make it possible to temporarily reduce dependence on the Strait of Hormuz. Capacity grows, but has limitations Major shipping lines such as Maersk, MSC, CMA CGM and Hapag-Lloyd have now set up additional services via alternative ports, with tens of thousands of teu of capacity collectively.

Yet these solutions are not without limitations. Land transport in particular - for example, along desert routes - is logistically complex and has capacity limits. The available infrastructure and number of trucks are not equipped for large-scale movement of full ship loads. This leaves these routes especially suitable for time-critical or essential goods such as food and medicine.

Impact on supply chains and cost structure

The shift to alternative routes has direct implications for supply chains. Transit times are becoming less predictable and costs are increasing due to additional transshipment, detours and use of multimodal transport.

For companies, this means that flexibility and real-time visibility are crucial to mitigate disruptions and ensure security of supply.
Targeted approach and support by Neele-Vat

For customers with cargo flows to and from the Middle East, Neele-Vat continuously monitors developments regarding shipping routes, capacity and geopolitical risks. On this basis, we actively steer for the most feasible and efficient solutions.

Specifically, Neele-Vat supports by:

• Actively analyze and offer alternative routes via Oman, India or the Red Sea.
• Shipments to be rerouted through available hubs outside high-risk areas
• combine multimodal solutions (sea, road,air,rail) where appropriate
• proactively inform customers of delays, risks and cost impacts.

Through this focused and operational approach, Neele-Vat helps customers keep their logistics chains running even in an uncertain market.

Want to know which alternative routes are most suitable for your shipments to the Middle East? Get in touch with your contact at Neele-Vat for up-to-date and practical advice.