New Shipping Service to Connect Europe with Isolated Middle Eastern Ports

Introduction of a New Shipping Route

The world's largest container shipping company is set to launch a new service aimed at linking Europe with isolated ports in the Middle East. Instead of navigating through the Strait of Hormuz, this service will utilize trucks via Saudi Arabia and smaller vessels in the Persian Gulf. MSC Mediterranean Shipping Co. SA announced that the inaugural journey will commence on May 10 from Antwerp. This route will include stops in Germany, Italy, Lithuania, and Spain. The ships will traverse the Suez Canal before entering the Red Sea, visiting two ports located on Saudi Arabia's western coast—Jeddah and King Abdullah.

Truck Network Operations

From there, the network will extend to Dammam on the eastern coast of the peninsula using trucks. In Dammam, feeder ships will connect to maritime gateways, including the ports of Abu Dhabi and Jebel Ali in Dubai. These locations host significant industrial zones where numerous multinational companies operate, relying heavily on containerized goods that previously flowed freely through the Strait of Hormuz. Since the U.S. and Israel's attack on Iran on February 28, traffic through this strait has been severely disrupted, with no immediate signs of reopening. This prolonged blockade has compelled shipping companies to seek alternative land routes, which are more time-consuming, costly, and result in higher carbon emissions.

Establishment of Ground Transport Routes

Ports located just outside the strait, such as those on the eastern coast of Oman and the UAE, are experiencing a significant influx of containerized goods. This surge necessitates an increase in truck capacity for further distribution. Hamburg-based Hapag-Lloyd AG reported in March that it has established ground transport routes through Saudi Arabia and Oman. Similarly, Copenhagen-based A.P. Moller-Maersk A/S has announced multimodal 'landbridge' solutions for cargo transport across the region. In its advisory, Geneva-based MSC stated that this new service was initiated to meet the rising demand amid the challenging situation in the Middle East. The journey from Jeddah to Dammam, which passes through the capital Riyadh, spans approximately 800 miles. MSC's feeder vessels will also reach Bahrain, Iraq, and Kuwait.