Strait of Hormuz

Shipping Arabia, November 13, 2026 – Saudi ports container throughput increased 14% year over year in October 2026, reaching approximately 866,000 TEUs as shipping companies increasingly use the Kingdom’s Red Sea ports to serve Gulf markets. The growth comes amid disruptions to navigation through the Strait of Hormuz, prompting major container carriers to adopt alternative shipping and logistics routes across the region.

According to data published by the Saudi Ports Authority (Mawani), inbound container volumes increased by 8.53%, while outbound container volumes rose by 4.83%. Meanwhile, transshipment activity reached approximately 186,000 TEUs during October.

The figures highlight growing activity across Saudi Arabia’s port network as international shipping companies adjust their transportation arrangements in response to regional maritime disruptions.

Shipping Lines Redirect Gulf Cargo Through Saudi Arabia

Restrictions affecting navigation through the Strait of Hormuz have prompted international shipping companies to explore alternative routes for transporting cargo to Gulf markets.

MSC, the world’s largest container shipping company, introduced a new logistics route in May 2026 connecting Europe with Gulf destinations through Saudi Arabia’s Red Sea ports.

Under the arrangement, cargo arrives at Jeddah Islamic Port and King Abdullah Port before continuing overland by truck to Dammam on the Kingdom’s eastern coast. From there, shipments are transported by sea to destinations in the United Arab Emirates, Bahrain, Kuwait and Iraq.

The route provides an alternative transportation arrangement for cargo moving between Europe and Gulf markets while avoiding direct maritime passage through the Strait of Hormuz.

Other major carriers have also adjusted their logistics arrangements. Maersk and Hapag-Lloyd have adopted alternative transportation solutions through Saudi Arabia and Oman to maintain access to regional markets.

These developments reflect the growing role of Saudi Arabia’s Red Sea ports in supporting cargo movements traditionally associated with Gulf shipping routes.

Saudi Arabia Expands Red Sea Port Capacity and Maritime Connectivity

Saudi Arabia has introduced its Logistics Corridors Program to accommodate cargo redirected from eastern and Gulf ports to facilities along the Red Sea.

The Kingdom’s Red Sea ports have a combined annual container handling capacity exceeding 18 million TEUs, providing infrastructure to support alternative regional trade routes.

Alongside the logistics corridor initiative, Saudi Arabia has expanded maritime connectivity along its western coast.

Mawani has introduced more than 27 additional shipping services, providing extra monthly container handling capacity exceeding 200,000 TEUs.

The expanded network aims to facilitate the movement of cargo through Saudi ports and maintain trade flows to regional markets amid disruptions affecting established maritime routes.

By combining maritime connections through Red Sea ports with overland transportation to eastern Saudi Arabia, the Kingdom is developing alternative logistics arrangements for cargo destined for Gulf countries.

Jeddah Islamic Port Receives SAR 641 Million Infrastructure Investment

Mawani has also invested approximately SAR 641 million in upgrading Jeddah Islamic Port over a three-month period.

The investments include expanding container terminals and introducing additional cargo-handling equipment to strengthen the port’s operational capacity.

These improvements form part of wider efforts to accommodate growing demand for port services and support the movement of redirected cargo.

In parallel, Saudi Arabia has established a truck staging facility in Jeddah capable of accommodating 40,000 trucks daily.

The facility supports the management of road transport movements associated with cargo entering and leaving the port area.

Furthermore, agreements have been signed to develop logistics centers with investments exceeding SAR 1 billion.

These projects aim to strengthen the Kingdom’s logistics infrastructure and increase its capacity to handle transportation, storage and distribution requirements.

The combined investments in container terminals, cargo-handling equipment, truck facilities and logistics centers reflect Saudi Arabia’s efforts to improve its infrastructure in response to changes in regional shipping patterns.

Saudi Arabia and UAE Expected to Increase Transport Infrastructure Investment in 2027

Regional geopolitical risks are also influencing longer-term investment priorities across the Gulf.

Ihsan Khoman, an economist at the BlackRock Investment Institute, expects Saudi Arabia and the United Arab Emirates to increase their focus on port and transportation infrastructure projects during 2027.

In earlier comments to Asharq Bloomberg, Khoman indicated that developing alternative transportation routes would become an increasingly important priority as regional countries seek to strengthen supply chain resilience.

Such investments are intended to provide additional logistics options and reduce the vulnerability of trade flows to disruptions affecting strategic maritime passages.

For Saudi Arabia, the development of Red Sea port infrastructure and logistics corridors forms part of its response to changing regional cargo movements.

The 14% increase in Saudi ports container throughput during October 2026 comes as international carriers continue adjusting their services and transportation arrangements.

Meanwhile, additional maritime services, investments in Jeddah Islamic Port and expanded logistics infrastructure are strengthening the Kingdom’s capacity to accommodate redirected cargo and support trade flows to Gulf markets.

Source: Asharq Bloomberg

Shipping Arabia, November 13, 2026 – The International Maritime Organization (IMO) has placed maritime security, freedom of navigation and seafarer protection at the center of discussions during the 138th session of its Council. The meeting addressed escalating threats across strategic shipping corridors, including the Strait of Hormuz, the Red Sea and Bab el-Mandeb, alongside wider challenges affecting international trade and maritime governance.

The IMO Council maritime security discussions took place in London from November 2–6, 2026, under the chairmanship of Victor Jiménez of Spain. Amani Fathallah of Morocco participated as Vice-Chair, alongside IMO Secretary-General Arsenio Dominguez, representatives of member states and observers.

Egypt’s Maritime Transport Sector also participated in the meeting, represented by a delegation headed by Hussein El-Gezery.

Maritime economist Dr. Mostafa Rashid of the Arab Academy for Science, Technology and Maritime Transport outlined the meeting’s principal outcomes and their implications for Arab ports, shipping companies and maritime administrations.

According to Rashid, the session addressed five interconnected challenges: geopolitical tensions, threats to commercial vessels and seafarers, supply chain resilience, maritime digitalization and international maritime governance.

The Council also examined institutional reforms, technical cooperation, digital infrastructure and maritime training. These discussions reflected the IMO’s efforts to address immediate security risks while strengthening its capacity to respond to future industry challenges.

Maritime Security Threats Across Strategic Shipping Corridors

The protection of international shipping routes emerged as a central issue during the Council’s deliberations. Discussions covered the Strait of Hormuz and Arabian Gulf, Red Sea and Bab el-Mandeb, Black Sea and Sea of Azov, Western Indian Ocean, Gulf of Aden and Eastern Mediterranean.

These maritime corridors play essential roles in international energy transportation, commodity trade and global supply chains.

Strait of Hormuz and Arabian Gulf

IMO Secretary-General Arsenio Dominguez briefed the Council on security threats affecting commercial shipping in the Arabian Gulf and Strait of Hormuz.

According to the briefing, the IMO had verified at least 130 attacks against merchant vessels since the beginning of the Middle East conflict.

Confirmed seafarer fatalities linked to the conflict reached 25 following the death of a Filipino seafarer on November 5, 2026, after an attack involving the tanker M/T VELOS SAPPHIRE.

The briefing also highlighted the situation of thousands of seafarers facing security risks, including crew members aboard vessels unable to leave the Arabian Gulf.

The Council urged member states to avoid unlawful measures that endanger international navigation and seafarer safety. It also emphasized the need to protect seafarers regardless of nationality.

Furthermore, members called for continued engagement with relevant authorities and international organizations, closer monitoring of security developments and consideration of additional measures to reduce human casualties.

The Secretary-General was requested to provide a follow-up report at the Council’s next session.

Importantly, the Council did not announce a new military mechanism to protect the Strait of Hormuz. Instead, its conclusions emphasized international coordination, monitoring and measures within the IMO’s mandate.

Red Sea and Bab el-Mandeb

The Council strongly condemned Houthi attacks against commercial vessels and their crews in the Red Sea and Bab el-Mandeb, calling for an end to these incidents.

Rashid emphasized that the security situation carries significant implications for maritime trade between Asia and Europe through the Suez Canal.

He identified several potential consequences of continued instability, including higher marine insurance premiums, increased shipping risks, vessel diversions, longer voyage durations and greater fuel consumption.

Such disruptions can also affect vessel schedules, supply chain reliability and the competitiveness of ports and logistics services.

For Egypt, the implications are particularly significant because of the relationship between Red Sea security and Suez Canal traffic.

Rashid warned that further security deterioration in the southern Red Sea could encourage additional vessel diversions around the Cape of Good Hope. This would increase transportation costs and voyage durations while affecting canal transits, revenues and related maritime services.

Black Sea and Sea of Azov

The Council also condemned attacks affecting commercial vessels, seafarers, port infrastructure, search and rescue assets and maritime safety services associated with Ukraine’s special maritime corridor.

Members reaffirmed their commitment to maritime security and freedom of navigation in the Black Sea.

According to Rashid, these developments have implications beyond the immediate conflict area. Several Arab economies depend on Black Sea markets for agricultural commodities, grain, fertilizers and energy supplies.

Consequently, disruptions in this region can affect shipping costs, marine insurance, cargo availability and the reliability of food supply chains across Arab markets.

Western Indian Ocean and Gulf of Aden

Piracy and armed robbery were another priority, with the Council reporting 17 attempted or actual incidents in the Western Indian Ocean and Gulf of Aden since the beginning of 2026.

The discussions highlighted the importance of regional cooperation under the Djibouti Code of Conduct and its Jeddah Amendment.

These frameworks support information sharing, maritime capacity building and coordination between participating states.

The Council requested that the Secretary-General continue monitoring maritime security developments and keep member states informed.

For Arab countries bordering the Red Sea, Gulf of Aden and Indian Ocean, Rashid stressed the importance of strengthening cooperation among maritime administrations, coast guards and security authorities.

IMO Approves £2 Million for Digital Systems and Maritime Training

Beyond maritime security, the Council approved an initial allocation of £2 million from technical cooperation fund reserves to support two digital development initiatives.

The funding will contribute to the second phase of improvements to the Global Integrated Shipping Information System (GISIS) and the development of an IMO e-learning platform.

GISIS provides maritime information to member states and supports the management and exchange of data relevant to international shipping.

According to Rashid, further development could improve access to maritime information, strengthen data sharing and support monitoring of compliance with international conventions.

It could also help national maritime administrations improve the quality of information used in regulatory and operational decision-making.

The proposed e-learning platform aims to expand access to maritime education, technical cooperation and professional development.

Potential benefits include broader training opportunities, continuing education, improved instructor preparation and reduced dependence on traditional classroom-based training.

However, Rashid clarified that the initial financial approval does not mean the projects are operational or that their implementation arrangements have been finalized.

The Council requested additional information on project costs, implementation schedules and recurring operating expenses for consideration at a future session.

For Arab maritime administrations, these initiatives could provide opportunities to strengthen digital capabilities and maritime training.

Rashid also recommended developing Arabic-language educational content aligned with international maritime standards, particularly to support countries with varying levels of technical and institutional capacity.

Council Recommends Extension of IMO Secretary-General’s Term

The Council also considered the future leadership of the organization during a closed session.

Members agreed to recommend extending IMO Secretary-General Arsenio Dominguez’s term for another four years, beginning January 1, 2028, and ending December 31, 2031.

The recommendation will be submitted to the IMO Assembly at its 35th regular session for consideration under Article 22 of the IMO Convention.

The Council’s decision represents a recommendation rather than final approval, as the Assembly retains responsibility for confirming the appointment.

Rashid emphasized that leadership continuity could support ongoing work on maritime security, digital transformation, technical cooperation and institutional reform.

He also identified opportunities for Arab countries to strengthen engagement with the IMO Secretariat and expand participation in technical programs and capacity-building initiatives.

IMO Convention Amendments Could Expand Council to 52 Members

The Council reaffirmed its commitment to implementing amendments to the IMO Convention adopted by the Assembly in December 2021 under Resolution A.1152(32).

The amendments introduce three significant institutional changes.

First, they would increase Council membership from 40 to 52 states, expanding opportunities for geographic representation.

Second, they would extend Council members’ terms to cover two consecutive regular sessions of the IMO Assembly, generally equivalent to four years.

Third, the amendments would recognize Arabic, Chinese and Russian as authentic languages of the IMO Convention alongside English, French and Spanish.

During the November 2026 session, the Council encouraged member states that had not yet accepted the amendments to complete their national procedures.

The objective is to bring the amendments into force during 2027, subject to the required acceptance process.

Rashid described these changes as particularly important for Arab countries, especially the recognition of Arabic as an authentic treaty language.

He noted that this recognition would strengthen the language’s legal and institutional standing within the organization.

Meanwhile, expanding Council membership could provide additional opportunities for participation, although elections and representation would remain governed by the Convention’s established procedures.

Rashid called for stronger coordination among Arab states to support acceptance of the amendments and improve their participation in IMO decision-making.

IMO Recognizes Contributions to Gender Equality in Maritime

The Council also considered the IMO Gender Equality Award for 2027, which recognizes contributions to advancing women’s participation in the maritime industry.

Members decided to award the 2027 honor to Yu Jiajia, nominated by China.

The Council also endorsed a recommendation to present a letter of commendation to Gemma Griffin, nominated by Denmark.

The award ceremony is scheduled for May 18, 2027, at IMO headquarters in London, coinciding with the International Day for Women in Maritime.

Rashid highlighted the relevance of this initiative for Arab maritime sectors, particularly in encouraging greater participation by women in navigation, marine engineering, port management, maritime education and research.

Strategic Implications for Arab Ports and Shipping Industries

Rashid identified several priorities for Arab maritime administrations arising from the Council’s discussions.

For Egypt and other Red Sea countries, these include stronger maritime security monitoring, improved early-warning systems and closer coordination among ports, shipping companies and relevant authorities.

He also emphasized the need to strengthen crisis management arrangements and maintain the continuity of logistics services during disruptions.

For Arabian Gulf countries, Rashid highlighted seafarer protection, maritime risk management, insurance considerations and the diversification of logistics alternatives.

He further recommended improving the ability of regional ports to manage changes in vessel movements and strengthening international cooperation on maritime security.

The Black Sea developments also underscore the importance of protecting agricultural and energy supply chains that serve Arab markets.

In addition, Rashid encouraged Arab maritime administrations to modernize port management systems, improve maritime data exchange and expand digital services for ships.

Other priorities include strengthening compliance monitoring, developing maritime training programs and building technical expertise in risk management, logistics, digital systems and artificial intelligence.

On institutional representation, Rashid called for greater Arab coordination within the IMO, including participation in technical committees and the development of joint proposals.

He also emphasized the importance of strengthening professional opportunities for Arab women across maritime operations, training and management.

The maritime economist concluded that the IMO Council’s 138th session demonstrated the growing connection between maritime security, economic stability and international maritime governance.

For Arab countries, he stressed that protecting ships, ports and shipping corridors must be accompanied by investment in technical expertise, digital infrastructure and institutional capabilities.

According to Rashid, greater participation in international maritime decision-making will be essential for Arab states seeking to protect their maritime interests and contribute to shaping the future of global shipping.

Source: Al Mal News

Shipping Arabia, November 9, 2026 – Poul Hestbaek, CEO of Folk Maritime, addressed the impact of geopolitical developments on global shipping routes, maritime trade and regional connectivity during the 6th Annual Capital Link German Maritime Forum in Hamburg, Germany.

Hestbaek participated in a panel discussion titled “The New Geography of Global Trade: Markets, Routes & Geopolitical Realignment.” The discussion focused on changing trade patterns, operational resilience and the evolving strategies of international shipping lines.

The session examined how geopolitical tensions, shipping route adjustments and regional connectivity are influencing maritime transport networks. It also addressed the challenges of maintaining supply chain continuity while balancing operational efficiency, costs and risks.

Geopolitical Developments and Changing Global Shipping Routes

One of the central themes of the discussion was the impact of geopolitical developments on maritime trade flows, particularly through the Strait of Hormuz.

The panel examined the implications of regional tensions for container traffic and the continuity of international supply chains. These issues formed part of a broader discussion about the challenges facing shipping companies as geopolitical developments influence maritime operations and trade routes.

The reshaping of global shipping routes was another major topic, with particular attention to the evolving routing strategies of international shipping lines.

Discussions included the return of shipping services to the Suez Canal and the operational considerations involved in route selection. These considerations include maintaining efficiency, managing costs and assessing risks as shipping companies adjust their networks to changing circumstances.

The discussion highlighted the relationship between geopolitical developments and the commercial decisions facing shipping operators. Route selection, operational requirements and supply chain continuity were examined as interconnected aspects of maritime transport planning.

Maritime Resilience and Supply Chain Security

Maritime resilience and supply chain security also featured prominently in Hestbaek’s participation.

The discussion addressed the challenges of maintaining maritime operations and cargo movements amid regional geopolitical developments. Particular attention was given to the importance of operational continuity as shipping networks respond to changing conditions.

The panel explored how geopolitical uncertainty affects the maritime industry’s ability to maintain reliable cargo transportation and support international supply chains.

Operational resilience was considered alongside shipping companies’ evolving routing strategies, reflecting the connection between maritime network planning, risk management and the continuity of cargo flows.

Regional Connectivity and the Hub-and-Spoke Shipping Model

Another important area of discussion was the future of regional maritime connectivity and the role of the hub-and-spoke model in developing shipping networks.

The panel examined how this model can support the development of regional shipping connections and influence the structure of maritime transport services.

In particular, the discussion addressed the relationship between hub-and-spoke operations, shipping alliances and feeder services. These elements were considered in the context of evolving shipping networks and the changing geography of international trade.

The hub-and-spoke model was also discussed as part of the wider effort to improve regional connectivity and shipping network efficiency.

Hestbaek’s participation brought together several interconnected issues affecting maritime transport, including geopolitical risks, international trade routes, supply chain resilience and the development of regional shipping networks.

The 6th Annual Capital Link German Maritime Forum provided a platform for exchanging industry perspectives on these developments and examining how shipping strategies and maritime connectivity are evolving alongside changes in global trade.

Source: Folk Maritime

Shipping Arabia, November 6, 2026 – Libya has returned to International Maritime Organization (IMO) Council meetings for the first time since 2016, participating in the Council’s 138th session in London. The move marks a renewed engagement with the organization’s discussions on international maritime governance, shipping security, and regulatory developments.

The session took place at IMO headquarters from November 2 to 6, 2026. Libya’s participation reflects efforts by its Ministry of Transport and Ports and Maritime Transport Authority to strengthen the country’s presence in international maritime affairs and expand cooperation with IMO member states.

Libya Resumes Participation in IMO Council Proceedings

The Libyan delegation includes Wissam Al-Idrisi, Undersecretary at the Ministry of Transport for Administrative Affairs and Maritime Transport, and Mohammed Salem Al-Siwi, Chairman of the Libyan Ports and Maritime Transport Authority.

According to the authority, this is Libya’s first participation in IMO Council proceedings since 2016. The delegation’s attendance provides an opportunity to follow international maritime discussions and maintain direct engagement with representatives of other member states.

The participation also reflects Libya’s interest in monitoring decisions and developments affecting the maritime transport sector. Through its involvement, the country aims to strengthen cooperation with international partners and remain informed about evolving maritime requirements.

Maritime Security and Strategic Planning on the Agenda

The 138th IMO Council session addresses several priorities related to the organization’s governance and the challenges facing international maritime transport.

Key agenda items include strategic planning, resource management, financial reporting, external relations, and the organization’s activities.

Maritime security is another significant area of discussion, particularly the protection of vital international shipping routes amid security challenges affecting commercial navigation.

The agenda includes developments affecting the Strait of Hormuz, the Black Sea, the Sea of Azov, and the Red Sea. These maritime areas feature in discussions concerning navigation security and the movement of international maritime trade.

For Libya, participation provides an opportunity to follow these discussions and engage with issues affecting coastal states, maritime transport, and international trade.

Strengthening Libya’s Maritime Administration and International Cooperation

The Libyan Ports and Maritime Transport Authority emphasized that participation in IMO activities forms part of broader efforts to develop the capabilities and performance of the country’s national maritime administration.

One objective is to improve Libya’s ability to meet its international maritime obligations. The authority also seeks to keep pace with internationally adopted standards and requirements covering maritime safety, maritime security, and marine environmental protection.

Engagement with IMO member states offers an opportunity to strengthen institutional communication and cooperation. It also allows Libyan maritime officials to follow regulatory developments and international decisions relevant to the country’s shipping and port sectors.

The authority highlighted the importance of maintaining Libya’s presence in international maritime forums, particularly those addressing the interests of coastal states and the challenges facing international shipping.

Libya’s return to IMO Council meetings after a decade therefore represents a renewed opportunity for engagement with the international maritime community. It also supports the country’s stated objectives of strengthening its maritime administration and following developments in international maritime governance.

Source: Libyan Ports and Maritime Transport Authority

Shipping Arabia, October 28, 2026 – Shipping disruptions across the Middle East are reshaping regional maritime trade, increasing demand for Saudi Red Sea ports while driving up vessel operating costs and freight expenses. Red Sea Gateway Terminal (RSGT) has reported a 20% increase in demand for its services since the beginning of 2026, reflecting the diversion of cargo flows from disrupted regional shipping routes.

The changing trade patterns have created new operational and investment opportunities for Saudi port operators. However, shipping companies are facing higher fuel expenses, insurance premiums, longer voyages and congestion at some regional ports.

Executives from Red Sea Gateway Terminal and Folk Maritime outlined these developments during the Saudi Maritime & Logistics Congress 2026 in Jeddah. Their remarks highlighted the contrasting effects of regional disruptions on port operators, shipping lines and cargo owners.

Saudi Red Sea Ports Benefit From Shifting Cargo Flows

Badr Al-Otaibi, Chief Operating Officer of Red Sea Gateway Terminal, told Asharq Al-Awsat that demand for the company’s services had increased by approximately 20% since the beginning of 2026.

The growth has been driven by rising transshipment activity and cargo diversions from maritime routes and ports affected by regional instability. Al-Otaibi said demand continues to increase, with further growth expected in the coming period.

Previous infrastructure investments and capacity expansions at Saudi Red Sea ports have helped operators accommodate the additional cargo flows. According to Al-Otaibi, these improvements have enabled terminals to handle more vessels and containers while limiting operational delays.

He also highlighted the importance of Saudi port readiness in managing the effects of disruptions around the Strait of Hormuz. The availability of alternative maritime gateways has helped address some of the challenges facing importers and exporters.

To respond to the changing operating environment, Red Sea Gateway Terminal has invested approximately SAR 200 million ($53.3 million).

Al-Otaibi said the company had previously invested around SAR 3.6 billion ($960 million) in developing its operations and infrastructure.

He also outlined major development projects involving SAR 1.6 billion ($426.6 million) in multipurpose cargo facilities. A separate container terminal project, developed in partnership with a French company, involves investment of the same amount.

These investments aim to strengthen cargo-handling capabilities, improve operational efficiency and support the growing demands placed on Saudi maritime infrastructure.

Looking beyond its existing terminal operations, RSGT is also evaluating opportunities in warehousing and logistics services outside port boundaries. Al-Otaibi said any expansion would depend on market requirements and investment feasibility.

For now, the company’s investment activities remain focused on the development and operation of maritime terminals.

Rising Fuel and Insurance Costs Pressure Shipping Lines

While some Saudi ports are attracting additional cargo, shipping companies are experiencing significant cost increases.

Poul Hestbaek, CEO of Folk Maritime, told Asharq Al-Awsat that vessel fuel expenses had reached three times their normal levels during certain periods of the disruptions.

Although costs have moderated, he said they currently remain approximately 2.5 times their usual levels.

Insurance premiums have also increased substantially. In some cases, coverage for vessels operating in high-risk maritime areas has become several times more expensive than under normal conditions.

The changing shipping environment has introduced additional operational challenges, including congestion at certain ports, extended voyage distances and the redistribution of vessels between services.

Hestbaek said these factors had caused a limited reduction in Folk Maritime’s effective operating capacity. Cargo volumes transported since the beginning of the year have also been slightly below the company’s expectations.

Longer transportation times and more complex port operations have increased costs for cargo owners. Alternative routes can also involve additional inland transportation expenses.

Hestbaek explained that some shipments have been redirected through ports in the United Arab Emirates and Oman before continuing to their final destinations by road.

As cargo flows shift between regional gateways, shipping companies have had to adapt their vessel deployment strategies. Folk Maritime has consequently redistributed parts of its fleet to reflect changing trade patterns.

Despite higher operating expenses, Hestbaek said the company had passed most of the additional costs to customers and, ultimately, consumers.

Higher revenue has helped offset the increased expenditure while allowing the company to maintain satisfactory vessel utilization levels.

However, Al-Otaibi offered a different perspective on domestic logistics costs. He said road transportation and logistics expenses within Saudi Arabia had remained relatively stable and reasonable.

According to Al-Otaibi, the greatest cost pressures have been concentrated in ocean freight and marine insurance rather than domestic transportation.

Cargo Diversions Do Not Necessarily Mean Long-Term Port Growth

The contrasting experiences of port operators and shipping lines illustrate how maritime disruptions affect different parts of the logistics industry.

Hestbaek cautioned that increased cargo volumes at particular ports should not automatically be interpreted as sustainable growth in regional trade.

Some ports currently benefiting from redirected shipments may have previously lost cargo to competing gateways during earlier disruptions.

As a result, higher throughput can reflect temporary changes in shipping routes rather than a lasting increase in total trade volumes.

This distinction is particularly important as shipping companies continue adjusting services in response to developments around the Strait of Hormuz and the Red Sea.

Although some ports are gaining additional cargo, shipping lines must manage the financial and operational consequences of longer voyages, vessel redeployment and more complicated supply chains.

Cargo owners and consumers also face additional expenses, even when alternative transportation routes remain available.

Folk Maritime Launches Yanbu Service and Plans Fleet Expansion in 2027

Folk Maritime is adapting its network to changing regional trade patterns through new shipping services and planned investments in container vessels.

Hestbaek revealed that the company had launched a service during 2026 connecting the Saudi port of Yanbu with ports in Egypt and Jordan.

The service remains in its development phase but has delivered encouraging initial results.

According to Hestbaek, the new connection forms part of the company’s efforts to strengthen links between Red Sea ports and its wider international shipping network.

The company is also preparing to expand its container vessel fleet in 2027 through additional vessel acquisitions.

However, the expansion will depend on the availability of suitable ships that meet the company’s operational requirements.

The planned investments aim to strengthen Folk Maritime’s services connecting the Indian subcontinent, the Middle East, the Arabian Gulf and the Red Sea.

Hestbaek expects shipping challenges to continue into 2027, citing uncertainty surrounding stability in the Strait of Hormuz and the Red Sea.

He emphasized that ensuring the reliable delivery of essential goods to Saudi Arabia remains Folk Maritime’s highest operational priority.

The company continues adjusting its network and vessel deployment to maintain cargo flows despite the changing operating environment.

Saudi Maritime Industry Focuses on Supply Chain Resilience

The executives made their remarks during the Saudi Maritime & Logistics Congress 2026, held in Jeddah under the patronage of Saudi Minister of Transport and Logistic Services Saleh Al-Jasser.

The event brought together representatives from shipping companies, port operators and logistics service providers to discuss developments affecting maritime trade and regional supply chains.

Key topics included changing shipping routes, port competitiveness, maritime infrastructure investment and the challenges facing international logistics networks.

Industry participants also examined how companies can improve operational resilience through infrastructure development, flexible shipping networks and additional capacity.

The developments highlight a significant shift in the regional maritime sector. Saudi Red Sea ports are attracting additional cargo as trade routes change, while shipping companies continue managing higher operating expenses and uncertain trading conditions.

For terminal operators such as Red Sea Gateway Terminal, the shift is supporting new investments and increased demand for handling services. For shipping lines such as Folk Maritime, it is accelerating network adjustments, service development and fleet planning.

However, the longer-term impact on regional maritime trade will depend on how shipping routes evolve and whether current cargo diversions become lasting changes in supply chain patterns.

Source: Asharq Al-Awsat

Shipping Arabia, October 27, 2026 – Grand Faw Port construction has reached advanced stages, with Iraq reporting 98% completion of the immersed tunnel, 100% completion of breakwater works and 94% progress on infrastructure development. The General Company for Ports of Iraq (GCPI) has also installed the first navigation buoy in the port’s approach channel, marking another step toward preparing the facility for vessel traffic and future trial operations.

GCPI Director General Abdullah Ati Abdullah announced the construction milestones during a press conference. He confirmed that work continues across the port’s major infrastructure projects, with preparations advancing for the next development phases.

The latest progress reflects ongoing efforts to complete one of Iraq’s major strategic infrastructure projects, which aims to strengthen maritime transport and trade activity.

Grand Faw Port Construction Reaches Key Milestones

According to Abdullah, the immersed tunnel has reached 98% completion, while construction of the port’s breakwater has been completed. Infrastructure development has also advanced to 94%, bringing several major project components closer to completion.

The director general emphasized that construction activities remain ongoing with support from Iraq’s prime minister and Minister of Transport Wahab Al-Hassani. He also acknowledged the efforts of technical and engineering personnel and the companies executing the projects.

With major infrastructure works approaching completion, attention is shifting toward the next stage of development. Abdullah indicated that this phase will focus on constructing the superstructure of the port’s berths.

He also stated that trial operations are expected during the coming period as GCPI continues preparations for the port’s operational development.

First Navigation Buoy Installed in Approach Channel

In a separate development, GCPI announced the successful installation of the first navigation buoy in Grand Faw Port’s approach channel. The installation forms part of the ongoing work to prepare the waterway for maritime navigation and vessel arrivals.

Minister of Transport Wahab Al-Hassani confirmed that the milestone coincides with progress across several major projects associated with the port. He highlighted the completion of the breakwater and the advanced construction stages of the immersed tunnel and infrastructure works.

GCPI Director General Abdullah Ati Abdullah described the first buoy installation as the beginning of efforts to equip the navigation channel with advanced maritime safety and navigational guidance systems.

Technical and engineering teams are continuing work to install the remaining navigation buoys and associated systems. These activities are intended to meet maritime navigation requirements and prepare the channel to receive vessels.

The company is also continuing work on other project requirements as it prepares for the transition toward trial operations.

Iraqi Ports Address Regional Maritime Challenges

Alongside the Grand Faw Port construction updates, Abdullah addressed the impact of the Strait of Hormuz crisis on maritime traffic in the region.

He acknowledged that the situation has affected regional shipping activity, creating challenges for maritime operations.

Nevertheless, Abdullah emphasized that Iraqi ports are continuing efforts to increase cargo handling and storage activities. He also indicated that work remains underway to support a gradual recovery in port operations.

The developments at Grand Faw Port remain an important part of Iraq’s broader maritime infrastructure priorities. With the immersed tunnel and other major works approaching completion, GCPI is continuing preparations for the next construction stages, navigational readiness and eventual trial operations.

Source: General Company for Ports of Iraq

Shipping Arabia, October 6, 2026 – The Egyptian Maritime Society held a seminar examining geopolitical risks to maritime corridors and their impact on global supply chains, with discussions focusing on the Suez Canal, Strait of Hormuz and Bab el-Mandeb amid heightened tensions affecting international shipping and trade flows.

The seminar, titled “Global Maritime Corridors and Straits, Geopolitical Tensions and Their Impact on Supply Chain Flows,” was chaired by Rear Adm. Essam El-Din Badawy, President of the Egyptian Maritime Society.

Senior maritime officials and specialists participated in the event, including Rear Adm. Hussein El Geziry, Head of Egypt’s Maritime Transport & Logistics Sector, and Rear Adm. Dr. Ashraf El Assal, Chairman of the Egyptian Authority for Maritime Safety.

The seminar also brought together logistics and maritime experts, including Dr. Medhat El-Qadi, President of the Alexandria Businessmen Association, and logistics expert Dr. Ahmed El-Fawaz, alongside specialists in international law, navigation and maritime transport.

Suez Canal, Hormuz and Bab el-Mandeb in Focus

The discussions addressed some of the world’s most important maritime passages, particularly the Suez Canal, Strait of Hormuz and Bab el-Mandeb.

Participants examined the geopolitical developments affecting these corridors and their direct implications for international trade and the movement of global supply chains.

Rear Adm. Ahmed Reda Ismail, Vice President of the Egyptian Maritime Society, highlighted the importance of the seminar amid increasingly complex geopolitical conditions. He said these developments are contributing to changes in the maritime transport map and increasing the need to examine possible alternative routes for global trade.

The discussions therefore focused not only on the immediate effects of geopolitical tensions but also on how maritime transport patterns could change when key corridors face disruption or heightened risk.

Maritime Law and Freedom of Navigation

The seminar included several specialized themes covering the legal and operational dimensions of maritime corridors and straits.

One session addressed international maritime law governing straits and maritime passages. Rear Adm. Dr. Ashraf El Assal, Chairman of the Egyptian Authority for Maritime Safety, presented this theme.

The program also examined freedom of navigation and the different forms of passage through international waterways. Prof. Abdel Moneim Mohamed Dawood, professor of international law, addressed this subject during the seminar.

These discussions formed part of a broader examination of the legal frameworks governing navigation through strategically important waterways at a time when geopolitical tensions are placing increased pressure on maritime trade routes.

Geopolitics and Supply Chain Flows

Another key theme focused on the relationship between geography, geopolitical tensions and global supply chains.

Dr. Hatem Abdel Gawad, from the Planning Department at the Suez Canal Authority, discussed how geography and geopolitical developments can influence the flow of supply chains.

The seminar addressed what it described as the impact of “forced geography” and geopolitical tensions on supply chain movements, linking physical maritime chokepoints with the operational challenges facing shipping and international trade.

The discussions also considered potential alternative routes available to global trade when disruptions affect major maritime corridors.

Egyptian Maritime Society Highlights Need for Clear Response

Rear Adm. Essam El-Din Badawy emphasized the need to address geopolitical crises affecting maritime corridors with clarity, particularly developments related to the Suez Canal.

The seminar brought together expertise in maritime transport, logistics, navigation and international law to examine how geopolitical pressures on key waterways can affect shipping routes and supply chain continuity.

By focusing on the Suez Canal, Strait of Hormuz and Bab el-Mandeb, the Egyptian Maritime Society placed three major strategic maritime passages at the center of its discussion on the changing global shipping environment.

Source: Maritime Transport & Logistics Sector

Shipping Arabia, October 6, 2026 – Container transport and related logistics costs serving the UAE and Gulf markets have risen by around three to five times, or 300% to 500%, following disruptions affecting the Strait of Hormuz, according to the UAE’s National Shipping and Logistics Committee. The committee stressed that the increase does not reflect a similar rise in basic ocean freight rates alone, but rather the accumulation of additional costs across disrupted transport chains.

Ahmed Abdul Razak, deputy chairman of the National Shipping and Logistics Committee and general manager of Maltrans Emirates, said it remains difficult to establish a uniform container transport rate after the problems affecting the Strait of Hormuz. Costs vary depending on the shipping line, port, routing and the way cargo ultimately reaches its destination.

Alternative routings reshape Gulf cargo flows

Disruption to maritime corridors has forced some cargo bound for Gulf markets onto alternative routings. While some containers continue to arrive directly at their intended ports, others are being discharged at intermediate ports before completing their journeys by sea or road.

Abdul Razak said cargo has reached ports including Khor Fakkan and Fujairah in the UAE, as well as Sohar and Salalah in Oman. Some of these containers were then transported overland to UAE ports and destinations, including Jebel Ali.

He said the UAE’s logistics infrastructure and its developed network of ports and roads have helped the country manage the disruption and redirect cargo arriving through different gateways.

Shipping lines have also activated provisions allowing cargo to be discharged at the nearest available port when problems affect normal maritime routes. As a result, some vessels have discharged containers in Oman before the cargo subsequently moved through Fujairah or Khor Fakkan and onward to its final destination.

Additional charges drive 300–500% cost increase

According to Abdul Razak, the overall cost of container transport has increased by between three and five times during the recent period. However, he emphasized that this does not mean basic ocean freight itself has risen by the same percentage.

Instead, the final cost reflects the accumulation of multiple charges associated with longer or more complex transport arrangements. These include war risk surcharges, conflict-related emergency charges and emergency fuel surcharges, which vary from one carrier to another.

Inland transport costs have also risen significantly. Additional customs clearance charges and higher fuel expenses have further increased the total cost of moving containers when cargo must be redirected through alternative ports or transferred between sea and road transport.

Longer routings and transshipment operations have also contributed to higher fuel consumption, adding further cost to the container transport chain.

Gulf shipping capacity remains tight

The increase in UAE container transport costs is also linked to reduced shipping capacity available for Gulf-bound cargo.

Abdul Razak said the challenge is not limited to price levels but also involves the availability of space aboard vessels. Some sailings have reached full capacity, while other voyages have been canceled.

He added that cargo bookings being rolled to later sailings have become common on some services, further complicating transport planning.

Costs also differ between Gulf ports because of variations in routing, port choice and the method used to complete container movements. As a result, the final cost can vary considerably from one shipment to another.

Abdul Razak said shipping costs have not yet declined and remain at peak levels. He added that a return of maritime routes to normal conditions would help reduce both shipping costs and associated logistics expenses, particularly those generated by alternative routing and additional charges.

UAE infrastructure supports cargo continuity

Despite the disruption, Abdul Razak said essential goods remain available in the UAE.

He said authorities have prioritized customs clearance for essential materials, helping maintain their availability in the domestic market.

The disruption has also not forced all cargo onto a single alternative corridor. Instead, shipping companies and carriers have used multiple options, including different Gulf ports, short-sea transport and road transport.

According to Abdul Razak, the UAE’s logistics infrastructure, together with its road and port network, has supported the movement of containers arriving through different ports and allowed them to continue to their final destinations.

Source: Emarat Al Youm

Shipping Arabia, October 1, 2026 – Global container shipping has adapted to prolonged disruptions across the Middle East, maintaining cargo flows through alternative routes and operational adjustments, but the industry’s return to normal conditions is expected to be considerably more gradual.

Shipping companies have spent months adjusting their networks in response to disruptions affecting the Red Sea and the Strait of Hormuz. While those measures have allowed global trade to continue, they have come at the expense of higher operating costs, longer voyages and reduced network efficiency.

Several Maersk services have now returned to the Red Sea and Suez Canal route after earlier diversions prompted by regional security concerns, providing one of the clearest indications that carriers are gradually restoring some of their traditional routing.

Maersk’s global head of chemicals, Patrick Hore, said the container shipping system had adapted to disruption in the Middle East, although vessel availability and irregular trade flows continued to present significant challenges. The carrier has been increasing the number of services operating through the Red Sea and Suez Canal, including six major Asia-Europe services as well as services connecting the Middle East with Europe and North America.

For the wider industry, however, adaptation should not be confused with a complete return to normal operating conditions.

AbdulRahman Taleb Ali, a maritime specialist and researcher, board member of the Jordan Shipping Association and founder of Shipping Arabia, a leading maritime news platform covering the Middle East and North Africa, told CNN Business Arabic that the global maritime shipping system had successfully adjusted to disruptions in both the Red Sea and Strait of Hormuz, but that this adjustment had come at a cost to efficiency and operating expenses.

Shipping companies have maintained the movement of cargo by introducing alternative routes, particularly around the Cape of Good Hope, but longer voyages have increased fuel consumption, security-related expenses and other operating costs.

The gradual return to the Suez Canal represents another part of that adaptation process rather than an immediate restoration of pre-disruption shipping patterns.

Ali said carriers continue to assess security risks, market demand and costs as they determine when and how to restore services through the canal. Suez nevertheless remains the shortest and most efficient maritime connection between Asia and Europe.

A broader return to the Suez route could reduce both transit times and transportation costs for cargo moving from China and other Asian markets into Europe, while helping shipping networks regain some of the efficiency lost during prolonged diversions around southern Africa.

The transition is taking place against a backdrop of continued pressure on global container shipping capacity.

DHL Global Forwarding data cited by CNN Business Arabic showed that global freight rates continued to rise during September, with particularly strong upward pressure on eastbound trans-Pacific services.

Carriers are also gradually increasing their use of the Suez Canal. Around 18% of relevant Asia-Europe services are now planned to operate through the route, according to the report.

Capacity constraints, meanwhile, are not necessarily being driven by stronger cargo demand alone. ICIS reported that Maersk was operating at around 96% of capacity, with slower vessel movements through ports and inland distribution networks absorbing available ships and equipment.

Equipment availability has also evolved as shipping networks adjust.

Ali said shortages of empty containers were no longer the industry’s primary challenge, with the gradual return of services through the Suez Canal helping improve equipment availability. However, the continued use of the Cape of Good Hope by some carriers is contributing to imbalances in the distribution of empty containers between export ports.

Longer voyages around the Cape also require additional vessel capacity to maintain scheduled services. The consequences extend beyond the additional distance, with carriers facing higher fuel consumption, insurance premiums and war-risk costs, as well as increased seafarer wages and risk allowances.

These pressures are being compounded by strong demand for shipping capacity and limited routing alternatives in parts of the global network.

A larger shift back toward the Red Sea and Suez Canal could ultimately ease some of these pressures by shortening voyages and releasing vessel capacity. In the short term, however, the transition itself could create a new operational challenge for European ports.

Ships travelling through the Suez Canal reach Europe considerably faster than vessels continuing around the Cape of Good Hope. As carriers gradually restore Suez routings, faster vessels using the canal could therefore arrive at European ports at approximately the same time as slower ships that departed earlier via southern Africa.

This convergence could temporarily increase congestion at some European terminals.

DHL data showed that global port congestion was approaching capacity equivalent to 4 million containers, highlighting the pressure already affecting parts of the international logistics network.

Ali said any congestion resulting from the overlapping arrival patterns should be viewed as a transitional challenge rather than a permanent condition. As shipping lines progressively restore traditional routes, ports and shipping networks will need time to realign vessel schedules, equipment flows and capacity.

The developments illustrate how the global shipping industry has demonstrated its ability to adapt to prolonged geopolitical disruption, but also how difficult it is to reverse those adjustments once networks have been reorganized around alternative routes.

The return to Suez is therefore likely to remain progressive. Even as more services resume passage through the Red Sea, carriers will continue balancing security, cost and operational considerations while global shipping networks work through the consequences of months of altered vessel schedules and longer voyages.

Source: CNN Business Arabic

Shipping Arabia, September 26, 2026 – Iraq’s Ministry of Transport said the impact of the regional war on the country’s transport projects remains limited, although Iraqi ports have been affected by the Strait of Hormuz crisis.

Hussein Ahmed, director of media and government communications at the ministry, said essential goods and food supplies continue to move through Iraqi ports. Vessel operations also remain active despite the regional disruption.

The ministry said Iraqi ports have faced pressures similar to those affecting other ports in the region. However, the crisis has not stopped the movement of essential supplies needed to support economic activity and daily life.

Road Transport Activity Increases

Road transport activity has increased during the crisis as Iraq continues moving cargo through alternative channels. Around 1,500 trucks have departed through the country’s western crossing.

International transport movements have also exceeded 7,000 operations during the recent period, reaching markets in Central Asia. The ministry said this activity has helped maintain trade flows while maritime transport in the region remains under pressure.

Continued road movements have therefore supported the flow of goods alongside active port operations.

Iraqi Ports Remain Operational

Ahmed said vessel activity is continuing at Iraqi ports and that flows of essential commodities remain in place. This includes food supplies and other goods required by the domestic market.

The ministry said the Strait of Hormuz crisis has affected Iraqi ports, but operations have continued despite the disruption. The continued movement of vessels and cargo has helped prevent a complete interruption to essential supply flows.

The ministry also highlighted the role of international land transport in supporting connectivity beyond Iraq during the crisis.

Oil Exports Face Greater Impact

While the broader effect on transport projects remains limited, Ahmed said the crisis has had a significant impact on Iraqi oil exports.

The ministry did not provide figures on the scale of the decline or the volume of exports affected.

Despite these pressures, port activity and road transport movements have continued, helping Iraq maintain the movement of essential goods and trade flows during the regional disruption.

Source: Al Jazeera