MUSCAT - With growing numbers of carriers avoiding ports inside the Arabian Gulf amidst the ongoing conflict in the region, shipping agencies and service providers are highlighting the advantageous position of Omani ports as alternative hubs for cargoes originating from or destined for countries across the Arabian Peninsula.

In recent days, leading shipping lines have introduced measures limiting voyages into the Gulf, citing rising war-risk insurance costs and the heightened risks faced by vessels entering the conflict zone. That zone effectively encompasses the waters of the Arabian Gulf, the Strait of Hormuz and much of the Sea of Oman.

For example, MSC — the world’s largest container shipping line — declared an “End of Voyage” for all shipments destined for ports in the Arabian Gulf, effectively terminating its contractual responsibility for cargo transiting the Strait of Hormuz. Responsibility for arranging onward transportation and assuming associated risks now rests with cargo owners.

MSC stated that shipments en route would be diverted to the next safe port of discharge, where cargo would be made available for local delivery and recovery, accompanied by a mandatory $800 per container surcharge to cover deviation costs. All discharge-related expenses, including handling and storage, remain the responsibility of the cargo owner.

Maersk, also ranked among the world’s largest container carriers, has suspended new bookings to and from Oman (with the exception of Port of Salalah), the UAE, Iraq, Kuwait, Jordan, Qatar, Bahrain and Saudi Arabia, citing operational measures to ensure safety and service stability.

The carrier also introduced an emergency surcharge on cargo already in transit to cover alternative routings and operational adjustments. Surcharges amount to $1,800 per TEU, $3,000 per forty-foot container and $3,800 for reefer units.

Chinese shipping and logistics giant COSCO Shipping’s container liner unit likewise suspended new bookings for routes to and from the Middle East, citing the escalating conflict and restrictions in the Strait of Hormuz. CMA CGM the France-based global shipping and logistics group, introduced an Emergency Conflict Surcharge of up to $4,000 per container on Gulf and regional trades, while Hapag-Lloyd implemented a War Risk Surcharge of around $1,500 per TEU and up to $3,500 for specialised equipment.

VARYING IMPACTS

While these measures will affect trade flows for Gulf states, the impact on countries outside the conflict zone is comparatively less. Saudi Arabia retains access to global routes via the Red Sea and the UAE can utilise its ports at Fujairah and Khor Fakkan for Sea of Oman connectivity.

Oman’s maritime gateways at Sohar Port, Duqm Port and Salalah Port — located outside the conflict zone — are being promoted as contingency hubs for cargo flows into the Arabian hinterland. Carriers and logistics providers are positioning these ports as stable alternatives capable of absorbing diverted traffic.

Mohammed al Tamami, Co-Founder of well-known fintech venture Mamun, described Oman’s role as a “stabilising bridge between seas, markets and neighbours” during regional disruptions, noting that decades of infrastructure cooperation across the GCC have produced strategic redundancy.

Examples include Kuwait’s downstream investments in Oman, Saudi Arabia’s road connectivity to Duqm, UAE logistics integration through Sohar and planned rail corridors; and interconnected port ecosystems that enhance regional resilience.

As Al Tamami observed, when maritime risk rises, trade typically re-routes rather than stops. Container traffic may shift towards transshipment hubs such as Salalah, while Duqm and Sohar serve industrial and feeder functions. Land corridors linking Oman, the UAE and Saudi Arabia further redistribute cargo and routes through the Al Mazunah Free Zone into Yemen connect Gulf supply chains to wider regional markets, he noted in a post.

ALTERNATIVE CORRIDORS

Service providers are capitalising on potential cargo diversions to Oman by expanding resources to support rerouting. Well-known Oman-based integrated logistics and supply chain company Al Madina Logistics affirmed its readiness to provide integrated logistics solutions that facilitate the movement of goods through Oman to regional markets, leveraging the Sultanate of Oman’s transport infrastructure and gateway position. The company also operates strategic logistics facilities, including the Muscat Container Depot, the Sohar Logistics Hub and the Mazunah Dry Port, which support local and regional trade.

Kanoo Logistics — the logistics and supply chain arm of the Yusuf Bin Ahmed Kanoo Group — noted growing demand for stable alternative corridors amidst disruptions, highlighting SOHAR Port and Freezone as an effective gateway for supply chain continuity. The company emphasised its ability to leverage Oman’s multimodal infrastructure and road connectivity to GCC markets, enabling cargo rerouting and uninterrupted logistics operations.

SOHAR’s strengths include sea–road connectivity to GCC destinations, dedicated customs and documentation services; and secure handling of transit cargo with duty and VAT deposit arrangements. Cross-border trucking services into Saudi Arabia, the UAE, Qatar, Kuwait and Bahrain further support regional distribution, while ongoing monitoring of border conditions optimises transit times, Kanoo stated in a post.

Thus, while ports outside the Gulf are expected to double as alternative hubs amid the conflict, maritime experts caution that congestion and overcapacity could emerge as rerouted shipments place additional pressure on some terminals.

Alfredo Busiello, an expert in the container shipping industry, commented: “While ports such as Khor Fakkan and Salalah may absorb part of the additional workload, their ability to mitigate the disruption remains limited due to the sudden spike in diverted volumes.

The industry will now require: Strong coordination across carriers, shippers and logistics stakeholders; Agile planning and routing flexibility; and Clear communication throughout the supply chain. The overall impact on schedules, equipment availability and transit times is likely to be considerable in the weeks ahead”, he added in a post.

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