Neele-Vat sees peak traffic at Middle East ports due to Hormuz crisis

'The closure of the strategic Strait of Hormuz is causing major congestion at alternative Middle Eastern ports'. According to Neele-Vat Middle East specialist Wijnand Molijn, the situation is leading to a major shift from sea to land transport, with major consequences for the logistics chain.

Since the blockade began a month and a half ago, containers are no longer being transported directly by sea to destinations in the Gulf region. Instead, shipping lines are diverting to ports outside the affected area, such as Salalah, Jeddah, and Khor Fakkan. There, goods are unloaded and then transported by truck to their final destination.

According to Molijn, this detour leads to unprecedented crowding. "The ports are incredibly full and there is a huge shortage of drivers. Everything that normally goes by sea now has to go by land," he says. The alternative routes pass through vast, hot areas, adding to the complexity of the logistics.

Higher costs and less trade

Changed transportation flows also have financial implications. The cost of transporting containers has risen sharply, sometimes by thousands of dollars per container. This makes it less attractive for companies to export low-value goods to the region. "You see certain products just don't go that way anymore," Molijn said.

"Companies are waiting for prices to normalize again. Meanwhile, warehouses here are getting fuller." Essential goods, such as food and chemicals, do continue to be transported, although rising logistics costs eventually translate into higher prices in the region.

More emissions from road transport

The shift from sea to road transport also has an environmental impact. Whereas previously large container ships carried thousands of containers in one trip, now thousands of additional truck trips are required to move the same volumes. This leads to a significant increase in carbon emissions in the region.

Effects noticeable in Rotterdam

Although the greatest pressure has now subsided, the situation remains palpable at Neele-Vat 's headquarters in Rotterdam. In the first weeks after the closure, the company was running at full speed to organize alternative routes. "By now we know how to deal with it, but it remains busier than usual," says Molijn.

There are also financial implications. Director Cuno Vat points to rising fuel prices and rising costs. "Diesel prices have exploded. We have to bear those costs ourselves before we can pass them on," he states.

In addition, supply chain shortages are emerging, especially for companies that rely on oil-related commodities. "For some customers, supplies are in danger of running out," Vat said.

How Neele-Vat supports with market fluctuations

As a logistics director, Neele-Vat understands that market knowledge gains value only when it is translated into concrete action. In a volatile market such as now, the company emphatically positions itself as an extension of its customers, focusing on both short-term benefit and long-term continuity.

Neele- Vat supports relationships including:

• Data-driven procurement: Thanks to real-time insight into index figures and direct lines of communication with shipping lines, shipments are booked at strategically advantageous times.
• Flexible contract types: Advice on striking the right balance between spot and fixed rates, tailored to risk profile and volumes.
• Network optimization: By operating independently, we can quickly switch between different shipping lines and alliances, balancing price and reliability.
• Multimodal backup: When ocean freight is under pressure, alternatives via rail and road provide a robust safety net.

Second opinion on ocean freight rates

Current market dynamics also present opportunities. Fluctuations in rates can create room for savings that are not always immediately apparent.

Companies looking to have their current contracts and shipping schedules reviewed can contact the ocean freight specialists for no-obligation analysis and optimization advice.

Contact our specialists.