Shipping lines cut Middle East routes posing risk to trade flows

The world’s largest container carriers are rerouting ships to avoid the Persian Gulf. Read more at straitstimes.com.

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Dubai – The world’s largest container carriers are rerouting ships to avoid the Persian Gulf as a widening military conflict pitting the US-Israeli alliance against Iran threatens to disrupt global merchandise trade.

MSC Mediterranean Shipping, the top container line, halted cargo bookings for the Middle East, while No. 2 A.P. Moller-Maersk and Hapag-Lloyd suspended all crossings in the Strait of Hormuz. 

DP World earlier suspended operations at the Jebel Ali port in Dubai, according to a notice sent to customers and seen by Bloomberg on March 2. The company later said all four of its terminals are operational.

Japanese shipping companies also suspended operations in the Persian Gulf. Nippon Yusen KK temporarily halted its operated vessels from travelling through the Strait of Hormuz, said a spokesperson. Kawasaki Kisen Kaisha has instructed its ships in the Persian Gulf to remain on standby, while Mitsui OSK Line ordered its vessels to wait in safe waters.

The logistics disruptions come as a major blow to the region, where business hubs such as Dubai rely on trade, tourism, transport and finance, along with a reputation as a haven in a troubled neighbourhood.