Global Trade Disrupted by Tensions in West Asia

The ongoing tensions in West Asia are severely disrupting global trade, particularly after the recent attacks on Iran. Major shipping companies are forced to change their operational routes, opting for land transport through Saudi Arabia instead of the risky Strait of Hormuz. This shift is expected to slow down supply chains and increase costs for consumers. A new logistics service from Belgium will further illustrate these changes, as goods are transported over long distances by truck. The situation underscores a growing uncertainty in global trade as companies adapt to these challenges.

By Narendra Chaudhary May 2, 2026, 20:02 IST

Impact of West Asia Tensions on Global Trade

The ongoing severe tensions in West Asia are beginning to affect global trade significantly. Following the attacks on Iran by the United States and Israel on February 28, a crucial maritime route has been 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 using 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 be launched 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 end, and the goods will begin their road transport.

A Long Journey of 1300 Kilometers

After unloading in Saudi Arabia, a large fleet of trucks will transport the goods through the capital Riyadh to the eastern coast 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 take more time, significantly increasing transportation costs and carbon emissions. As transportation expenses rise for companies, the financial burden ultimately falls on the end consumers.

What Led to These Difficult Circumstances?

The root of this trade crisis lies in the events of February 28, when the U.S. and Israel attacked Iran. Since then, strict restrictions have been imposed on the movement of ships 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 it reopening soon, forcing companies to seek alternative and more expensive routes.

New Routes in the Shipping Industry

Not only MSC but also other major players in the logistics industry are gearing up to tackle this crisis. Companies like Hapag-Lloyd from Hamburg and Maersk from Copenhagen have announced similar 'landbridge' or multimodal land routes. These companies are facilitating the movement of goods through Oman and Saudi Arabia, resulting in a significant backlog of cargo on 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.