Gulf Supply Chain Crisis: Impact of Strait of Hormuz Closure on Container Shipping - News and Statistics

Mar 17, 2026

An analysis from Drewry Maritime Research examines the severe impact on container shipping from the closure of the Strait of Hormuz. The strategic waterway is a conduit for a significant portion of global seaborne trade in energy and bulk commodities. While container traffic through Persian Gulf ports represents a smaller share of global volume, the strait serves as the sole maritime access for several national economies.

Ports on the Persian Gulf handle approximately 33 million TEU annually. The region’s dominant hub, Jebel Ali, processes around 15.5 million TEU per year, with Khalifa Port adding a further 6.6 million TEU. Both are located behind the chokepoint. According to connectivity data, more than three-quarters of the liner connectivity represented by these Abu Dhabi and Dubai hubs has been lost with the strait closed.

Limited Bypass Capacity Presents Logistical Challenges

Available bypass ports in the region collectively offer over 20 million TEU of spare annual capacity, but this figure is constrained by geographical and logistical factors. The port of Khorfakkan is identified as having genuinely high utility for bypass, located roughly 130 kilometers from Dubai via road. Authorities have implemented emergency customs procedures to facilitate direct road transfer to Jebel Ali and Abu Dhabi free zones.

Other ports offer more limited relief. Sohar has good road access to key UAE centers, and a green corridor for land shipments was activated in mid-March. In contrast, Salalah’s utility is rated very low due to an overland distance exceeding 1,700 kilometers to Dubai without a rail connection, making trucking costs prohibitive for Gulf supply chains. Red Sea ports like Jeddah can serve Saudi domestic needs, but the lack of a rail link to Riyadh forces reliance on long-haul road transport.

For Qatar, Bahrain, Kuwait, and Iraq, no adequate overland bypass routes exist that avoid transit through either the strait or Saudi territory.

Hub Disruption Compounds Port Access Issues

The closure disrupts not just port access but also regional hub operations. Both Jebel Ali and Khalifa Port have transhipment ratios around 65%, meaning cargo losses extend far beyond local gateway trade. An investment made to attract major shipping lines to use Khalifa Port as a regional hub is now stranded. The port’s rail connection to Fujairah offers only minimal relief capacity. Transhipment cargo previously handled in Abu Dhabi is expected to shift to hub ports in other global regions.

Phased Impact Highlights Long-Term Structural Risks

In the immediate term, severe disruption is expected with only partial mitigation. East-coast UAE ports may absorb a majority of local import volumes, but several Upper Gulf states face acute shortages with no viable bypass, creating critical stress points for commodities like food. Over a medium-term horizon, adaptation is possible but would carry high economic costs, with logistics expenses across the Gulf estimated to rise significantly.

A prolonged closure could act as a catalyst for transformative infrastructure investment that has been deferred for decades. Projects such as a GCC railway network or a container rail corridor along the Gulf coast would become economic necessities, though their development would require a multi-year horizon. The analysis concludes that while structural vulnerabilities are fixable, no combination of currently available bypass ports and logistics can fully substitute for Strait of Hormuz access in the short term.

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