The world’s largest container carriers are rerouting ships to avoid the Persian Gulf amidst escalating military conflict between the US-Israeli alliance and Iran, posing a threat to global merchandise trade. MSC Mediterranean Shipping Co, the top container line, has halted cargo bookings for the Middle East. AP Moller-Maersk, the world’s second-largest container shipping company, along with Hapag-Lloyd, has suspended all crossings in the Strait of Hormuz.
Earlier, DP World reportedly suspended operations at the Jebel Ali port in Dubai, according to a customer notice seen by Bloomberg on Sunday. DP World later clarified that all four of its terminals were operational. DP World is a global ports operator and logistics company that manages marine terminals, inland terminals, and maritime services. The Jebel Ali port adjoins one of the world’s largest industrial parks and serves as a crucial hub for goods moving from Asia to Africa, Europe, and the US East Coast.
The logistics disruptions deliver a significant blow to the region, particularly business hubs like Dubai, which rely heavily on trade, tourism, transport, and finance. Analysts warn that prolonged disruptions could have widespread repercussions across global supply chains. Dubai is also a vital centre for international air cargo.
Major American and European companies maintain distribution, packaging, and warehousing centres in the Jebel Ali Free Zone. Furthermore, the two largest airlines in the United Arab Emirates have ceased flight operations, with some airports sustaining damage from debris resulting from the recent conflict.
