Hormuz closure a fatal blow for Dubai and Abu Dhabi transhipment volumes
The closure of the Strait of Hormuz, approaching its eighth month, is predicted to cause the permanent loss of transhipment traffic at the UAE's two largest container facilities, Jebel Ali and Khalifa. Drewry senior associate Eirik Hooper said relay transhipment does not return once carriers have rebuilt networks around alternative hubs, because it follows network design rather than geography. Both DP World and AD Ports reported large declines in first-half volumes at Jebel Ali and Khalifa respectively, and DP World has taken a 50-year concession to build terminals outside Hormuz.
Why it matters: It indicates that conflict-driven carrier network redesign can permanently reallocate transhipment and logistics capacity within global supply chains, rather than producing a cyclical dip that reverses when the conflict ends.