MOSCOW, May 17 — Large shipping companies have begun using land transport to move fuel amid the partial blockage of the Strait of Hormuz caused by the West Asia crisis, reported Sputnik/RIA Novosti quoting the Financial Times newspaper on Sunday.
Amid the disruption, freight rates on the Shanghai-Persian Gulf and Red Sea routes hit a record this week, surpassing levels seen during the Covid-19 pandemic, according to the report. The newspaper reported, citing Clarksons Research data, that the cost of shipping a standard container on this route rose from US$980 (RM3,870) to US$4,131 (RM16,315) as of May 15.
Major carriers, including Mediterranean Shipping Company (MSC), Maersk, CMA CGM and Hapag-Lloyd, have established cargo transport routes from ports on the Red Sea and in the Gulf of Oman — including Yanbu and King Abdullah in Saudi Arabia and Fujairah in the United Arab Emirates — to ports such as Dammam in Saudi Arabia, Basra in Iraq and Jebel Ali in the UAE, the report said.
Maersk CEO Vincent Clerc told the Financial Times that “significant trucking power” had been mobilised, adding that “both the Saudis and the Iraqis have opened up for a lot of trucks coming from Iraq, from Jordan, from Turkey even.” However, trucks can only partially replace the capacity of large container and cargo vessels that previously served Persian Gulf countries via the Strait of Hormuz, the newspaper reported.
The Financial Times also reported, citing an unnamed London shipbroker, that grain traders are rerouting shipments through the Red Sea and the Gulf of Oman, after which cargo is transported by trucks and smaller vessels.
“There’s been a rise in the amount of grain received at Fujairah and Khorfakkan, with trucking to major UAE ports and then distribution to Qatar, Bahrain and elsewhere in the Gulf on smaller vessels,” the broker was quoted as saying.
On February 28, the United States and Israel launched strikes on Iranian territory. Washington and Tehran announced a ceasefire on April 7, but the US imposed a blockade on Iranian ports, while Iran announced special transit rules for passage through the Strait of Hormuz. — Bernama-Sputnik/RIA Novosti
Date: 17 May, 2026 7:00 pm
Source: Malay Mail
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