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Hormuz Crisis Limits Gulf Alternatives, Drewry

[ March 20, 2026   //   Gary Burrows ]

Container shipping disruptions linked to tensions around the Strait of Hormuz are testing whether Gulf states can reroute cargo through alternative ports and inland corridors, but structural constraints limit short-term options, according to Drewry Maritime Research.

The chokepoint handles a relatively small share of global container volumes, about 3.5 percent, but it is the primary maritime gateway for several Gulf economies, including Qatar, Kuwait and Bahrain, Drewry said. Its importance is amplified by the concentration of cargo at hubs such as Jebel Ali Port and Khalifa Port.

The Gulf handles roughly 33 million TEUs annually, with Jebel Ali alone moving about 15.5 million TEUs, according to Drewry. With diversions increasing since late February, much of that connectivity has been disrupted.

While alternative ports offer more than 20 million TEUs of spare capacity, their ability to absorb displaced cargo is constrained by inland logistics, Drewry said.

Port of Khorfakkan is the most viable short-term option due to its proximity to Dubai, about 130 kilometers by road. Authorities have introduced expedited customs procedures to facilitate cargo transfers inland, though trucking capacity remains a limiting factor.

Port of Sohar provides additional capacity and has workable road links into the UAE, supported by newly activated cross-border corridors, Drewry said. However, reliance on trucking limits scalability.

More distant options are less effective. Port of Salalah has significant spare capacity but is more than 1,700 kilometers from Dubai with no rail connection, making inland transport costly. Red Sea ports such as Jeddah Islamic Port can support Saudi domestic cargo, but the lack of a rail link to the Gulf restricts broader regional use.

The disruption is compounded by the region’s reliance on transshipment. Jebel Ali and Khalifa each handle about 65 percent transshipment cargo, meaning reduced access affects not only local imports but also feeder services to smaller Gulf markets, Drewry said.

In the near term, the consultancy expects only partial mitigation. East Coast UAE ports could absorb most of the country’s import demand, while Saudi Arabia may redirect some cargo through Red Sea gateways. Other Gulf states face more acute constraints due to limited overland alternatives.

Over the medium term, carriers are likely to adapt by redeploying vessels and expanding land-based corridors, but at significantly higher cost. Drewry estimates logistics costs in the region could rise several times under sustained disruption.

A prolonged closure would likely accelerate long-delayed infrastructure projects, including regional rail networks and new container hubs outside the Gulf. For now, Drewry said the situation highlights a structural vulnerability: the region’s hub-based container system depends heavily on a single maritime gateway with few immediate substitutes.

Tags: Drewry