Turkey plays a crucial role in rerouting Gulf cargo as the Strait of Hormuz faces near-closure, prompting new trucking routes to alleviate congestion.
Turkey has become a key player in rerouting Gulf cargo as the near-closure of the Strait of Hormuz forces shipping companies to mobilize land bridges through the region, reported Istanbul's Turkey Today.
Maersk CEO Vincent Clerc told the Financial Times that Saudi Arabia, Iraq, and Turkey had opened trucking routes to ease congestion, as freight rates on the Shanghai to Gulf corridor hit record highs. Rates surged to US$4,131 per TEU in mid-May, surpassing the COVID-19 peak of $3,960.
Shanghai to Jebel Ali rates had quadrupled to more than $8,000 per 40-foot container at the start of the war before easing to about $5,700, according to Freightos. Major carriers including MSC, Maersk, CMA-CGM, and Hapag-Lloyd have opened lorry routes from Red Sea and Gulf of Oman ports to Gulf destinations.
Hapag-Lloyd chief executive Rolf Habben Jansen said Gulf trade flows had fallen 60-80 percent, noting that land bridge capacity remained far below sea transport. He warned that the only viable option was trucking, but volumes were severely constrained.
Cargo remains stranded in ports as far as India and Mozambique. Tata Consumer Products' supply chain head Tony Stubbs said tea, salt, and pulses were being rerouted through Jeddah and Khorfakkan, with delays of up to 60 days.
A London shipbroker told the FT that grain traders were also diverting shipments through Fujairah and Khorfakkan, with trucks distributing cargo to Qatar, Bahrain, and other Gulf states. Fertilizer trader Hexagon Group president Christian Wendel described the situation as a logistical nightmare, with standard export cargoes requiring thousands of truckloads.
