Hormuz Strait Closure Disrupts Supply Chains: What Gulf Importers’ Rerouting Means for Your Business in Oman
دبي – Importers across the Gulf region are urgently seeking alternative routes for essential goods—including food, medicines, and industrial supplies—due to the effective closure of the Strait of Hormuz, a critical shipping passage for the import-reliant Gulf countries.
The suspension of commercial navigation through this vital chokepoint, caused by the ongoing U.S.-Israeli conflict with Iran, has not only disrupted Gulf oil exports but also triggered volatility in global energy markets. Beyond hydrocarbons, the closure is forcing a swift and costly overhaul of supply chains to ensure the continued flow of indispensable imports. Logistics providers are grappling with challenges such as rerouting vessels, increasing reliance on overland transport, and preventing spoilage of perishable goods.
Ronan Boudet, head of containers at data analytics firm Kpler, warned that “the price of supplies will rise quite dramatically,” noting specifically that trucking cargo from alternative ports to Dubai could cost multiple times more than ocean freight.
Diversions and Overland Transport
Data from Kpler indicated that on February 28—just prior to the outbreak of hostilities—81 container vessels headed for ports within the Strait of Hormuz. Since then, 43 vessels have rerouted to other Gulf ports, while the remainder have been diverted entirely out of the Gulf region.
Given the Gulf’s arid climate and heavy dependence on imports, approximately 70% of food supplies transit through the Strait of Hormuz to major hubs such as Dubai’s Jebel Ali port. While imports across the board have been affected, food remains particularly vulnerable.
Christophe Belloc, representing the French fruit and vegetable association Interfel, cited an example of 5,000 metric tons of French apples destined for Dubai currently stranded mid-transit. These goods incurred a maritime surcharge of €900,000 ($1 million) in the opening days of the conflict. Exporters, including Belloc’s company Blue Whale, are working to redirect shipments to alternative ports, despite phytosanitary documentation being linked to the original destination, complicating the process.
“With perishable goods, we can tolerate a 15-day delay, but not much beyond that,” Belloc explained.
Cargo is increasingly being offloaded at ports bypassing Hormuz—such as Fujairah and Khor Fakkan in the UAE, and Sohar in Oman—with trucks then delivering containers onward. However, these smaller ports lack the capacity of larger centers like Jebel Ali, leading to congestion and longer clearance times.
Gaurav Biswas, CEO of the logistics firm TruKKer, confirmed that port operators are extending hours and opening additional gate lanes to manage increased volumes. TruKKer plans to boost daily truck movements from 60 to 500 to meet demand. Nevertheless, cross-border shipments face delays due to intensified border inspections, and the company has raised prices by 5% to 15% on routes to Saudi Arabia, reflecting higher fuel costs and operational complexities.
Regional Vulnerabilities and Responses
Despite being outside the Strait of Hormuz, regional ports remain at risk. Fujairah’s port, which manages container shipments and a major crude export terminal, has been the target of repeated Iranian attacks. Other Omani ports, including Duqm and Salalah, have faced similar threats. Additional shutdowns or attacks could further delay shipments and drive up costs, a supply-chain manager in the fast-moving consumer goods sector warned.
In response to these risks, some Gulf retailers are bypassing maritime routes altogether. Lulu Retail, a supermarket chain, has already airlifted over 160 tons of meat and fresh produce this month and plans further air shipments to sustain stock levels in the UAE. However, key regional air hubs such as Abu Dhabi and Doha have suffered disruptions as well. A recent drone attack on Dubai International Airport—the third since the conflict began—halted air traffic for several hours.
Despite these logistical hurdles, shortages have not materialized. The UAE government has assured the public that strategic reserves cover between four and six months of essential goods.
Yuvraj Narayan, CEO of DP World, which operates Jebel Ali and other ports across Asia, affirmed that companies are adjusting operations. He noted that shippers are staging goods in India and Pakistan for onward feeder services to UAE ports like Fujairah and Khor Fakkan, with anticipated increased activity at Red Sea ports including Jeddah in Saudi Arabia and Sokhna in Egypt.
“We already have rail and land bridges ensuring essential commodities reach the UAE,” Narayan said. “There is a lot of rerouting happening.”
This evolving crisis underscores the Gulf’s urgent need to diversify and strengthen supply routes to safeguard its vital imports amid ongoing geopolitical tensions.
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The closure of the Hormuz Strait is compelling Gulf businesses, including those in Oman, to rethink supply chains with increased reliance on alternative ports like Sohar and costly overland routes, driving up logistics expenses. This disruption creates opportunities for Omani ports to expand their capacity but also brings risks of congestion and higher operational costs. Smart investors and entrepreneurs should consider investing in resilient, diversified logistics infrastructure and innovative supply chain solutions to capture emerging demand and mitigate geopolitical risks.
