Gulf Shipping Decline Report

The British Financial Times reported on the impacts of the closure of the Strait of Hormuz on Gulf shipping trade. While oil tanker movements continue to receive military protection and remain underway, non-oil trade has suffered significantly. Shipping costs have risen sharply, with the cost of a 40-foot container increasing from $1,250 to $10,000, and the transit time from China to the UAE doubling to approximately 60 days. This has disrupted the supply chain, leading to container shortages and delays. Although some activity persists at Gulf ports, reduced efficiency has resulted in shortages of certain goods and financial losses for companies and consumers, with limited government support. The US administration is focused on protecting oil exports, but this does not guarantee the entry of essential goods, posing a growing economic strain on the region—especially after the Houthis intensified their attacks at the Bab el-Mandeb Strait and increased reliance on alternative ports and land routes.

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