DP World will be offering alternative routes for cargo and export or import ships travelling to the Persian Gulf. According to recent news, the Dubai government-controlled logistics major has offered a temporary contingency arrangement. This new government initiative comes after considering the ‘ongoing regional situation’ in West Asia.
In a statement addressing the customers on Friday, the Dubai government-controlled logistics company said it would oversee bonded road transit of discharged containers from the two alternative ports directly to Jebel Ali for final customs clearance. "All bonded trucking movements are being fully coordinated by DP World," the company said. DP World also highlighted that they are working closely with relevant authorities and different shipping lines.
This also means that DP World’s customers can now unload their import containers at the newly introduced alternative locations. This is specifically applicable to Khorfakkan Port or Fujairah Port.
According to shipping data provider Windwarde, this new step comes as maritime traffic in the Strait of Hormuz has dropped. The traffic dropped by about 81 percent from its everyday average. This waterway usually handles about 30 percent of the world's crude oil transported through ships. It also handles about 20 percent of the global liquefied natural gas trade.
Reportedly, this route has been effectively closed to commercial shipping. The route was closed after the US-Iran war, which contributed to the constant bombing and missile attacks in the Persian Gulf.
As reported by Bloomberg, several important container carriers have suspended all crossings through the strait. These include A.P. Moller-Maersk, MSC Mediterranean Shipping, and Hapag-Lloyd.
Additionally, the CMA CGM has changed its original routes through the Cape of Good Hope. Thus, adding an emergency surcharge of $4,000 for each 40-foot container. Other shipping insurers have also cancelled war risk coverage for the strait. Thus, making transit economically inaccessible for cargo owners.
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