Impact of Middle East Tensions on Global Shipping Routes

The recent tensions in the Middle East have led to significant disruptions in global trade, particularly affecting shipping routes. Following attacks on Iran, major shipping companies have altered their operations, opting for land transport through Saudi Arabia instead of the risky Strait of Hormuz. This shift is expected to increase shipping costs and impact consumer prices. A new logistics service from Belgium will facilitate this change, with goods being transported over 1300 kilometers by truck. As companies adapt to these challenges, the logistics industry is witnessing a surge in demand for alternative routes, indicating a new era of uncertainty in global trade.

By Narendra Chaudhary May 2, 2026, 21:22 IST

Global Trade Affected by Middle East Tensions

The ongoing tensions in the Middle East are beginning to significantly impact global trade. Following the attacks on Iran by the United States and Israel on February 28, a crucial maritime route has been effectively closed. The situation has escalated to the point where the world's largest container shipping company has had to completely alter its business model. Instead of utilizing the risky Strait of Hormuz, the company has opted to transport goods via trucks along land routes in Saudi Arabia. This shift is expected to slow down supply chains, leading to increased shipping costs and a direct impact on the prices of everyday goods.

Major Shift in Maritime Trade: Reliance on Trucks

Starting May 10, a new logistics service will launch from the city of Antwerp in Belgium. Under this new route, large cargo ships will travel from Europe through the Suez Canal to the Red Sea. However, instead of continuing their journey, these vessels will offload all their cargo at the ports of Jeddah and King Abdullah on Saudi Arabia's western coast. From there, the maritime journey will conclude, and the goods will be transported by road.

A 1300-Kilometer Journey

After unloading at the western coast of Saudi Arabia, a large fleet of trucks will transport the goods through the capital Riyadh to the eastern city of Dammam, covering a distance of approximately 1300 kilometers. Once in Dammam, the cargo will be reloaded onto smaller vessels for delivery to major industrial hubs like Abu Dhabi and Dubai's Jebel Ali. Additionally, these smaller ships will also service Bahrain, Iraq, and Kuwait. This lengthy road transport will not only increase transportation costs significantly but also contribute to higher carbon emissions. As transportation expenses rise for companies, the financial burden ultimately falls on the end consumer.

What Led to These Difficult Circumstances?

The root of this trade crisis can be traced back to the events of February 28, when the U.S. and Israel launched attacks on Iran. Since then, strict restrictions have been imposed on shipping traffic through the Strait of Hormuz, a vital maritime route for global trade. Hundreds of multinational companies operating in the industrial zones of Dubai and Abu Dhabi relied heavily on this route. Currently, there are no signs of its reopening, forcing companies to seek alternative and more expensive routes.

New Shipping Routes in Demand

Not only MSC but also other major players in the logistics industry are gearing up to tackle this crisis. Companies like Hamburg's Hapag-Lloyd and Copenhagen's Maersk have announced similar 'landbridge' or multimodal ground routes. These companies are facilitating the movement of goods through Oman and Saudi Arabia, resulting in a significant backlog of cargo at the eastern coasts of Oman and the UAE, with truck demand soaring. This situation highlights that global trade is now navigating through a new phase of uncertainty.