Finance
Middle East Freight Routes Pivot Inland to Bypass Strait of Hormuz Risks

Logistics providers accelerate overland corridors and rail links to maintain supply chain stability amid maritime risks in the Strait of Hormuz.
Middle East logistics providers are accelerating the development of overland trade corridors to bypass the Strait of Hormuz, responding to increasing regional maritime risks. Shipping companies and regional governments are diversifying supply chains by utilizing ports on the Arabian Sea and the Red Sea, connecting them via road and rail networks to internal markets. Diversifying Logistics Hubs The Strait of Hormuz, a narrow waterway through which approximately 20% of the world’s oil and significant container traffic pass, has faced recurrent disruptions. Operations are now shifting toward the Port of Salalah in Oman and the Port of Jebel Ali in the UAE as primary nodes for multi-modal transport. Freight forwarders are increasingly offloading cargo at Omani ports to be trucked directly into the UAE and Saudi Arabia, cutting transit times by avoiding the congested chokepoint. Recent data indicates a rise in the use of the Saudi Landbridge project and Omani road networks. These routes offer a buffer against geopolitical volatility in the Gulf of Oman and the Red Sea. Logistics firms report that while overland transport can be more expensive than sea freight, the demand for…