US-Iran tensions drive Jeddah congestion as carriers reroute cargo

SAUDI ARABIA – The ongoing conflict between the United States and Iran has led to capacity constraints for ocean carriers at Middle East hub ports, with Jeddah emerging as a congestion hotspot as cargo shifts away from traditional Gulf routes towards multimodal and land-bridge networks.

Saudi Arabia’s Port of Jeddah has become an alternative gateway on the Red Sea, with rising cargo volumes causing congestion.

Vessel waiting times at Jeddah are reported at five to ten days on the India-Middle East trade lane.

As a result, several regional and feeder carriers, including Folk Maritime and Turkon Line, have suspended direct calls at Jeddah, while CMA CGM has reduced its India-Middle East-West Mediterranean Medex service from weekly to fortnightly sailings from Jeddah.

Cross-Border Transit Suspensions and Carrier Adjustments

Following guidance from the Saudi Ports Authority (Mawani), CMA CGM has suspended acceptance of cross-border transit bookings via Jeddah under merchant haulage arrangements. Carrier haulage shipments, in which CMA CGM manages inland transport as part of a door-to-door service, continue to be accepted.

Meanwhile, Maersk has also paused new bookings for landside cross-border transits through Jeddah for cargo moving between Saudi Arabia and the United Arab Emirates, Oman, and Qatar.

Mediterranean Shipping Co. (MSC) has introduced a US$500 per TEU congestion surcharge for shipments bound for Jeddah, applicable to all cargo types, equipment, and existing service agreements.

In addition, MSC is also allowing customers to reroute shipments via King Abdullah Port, approximately 75 miles north of Jeddah, without altering existing ocean contract terms.

Impact on Indian Exporters and Alternative Routes

The changes are affecting Indian exporters and logistics providers using Middle East supply chains. Industry participants report that schedule changes are complicating procurement, inventory management, and delivery planning.

Some freight forwarders in India report spot rates of up to US$10,000 per FEU from Nhava Sheva Port to Jeddah.

Consequently, Carriers are adding alternative routes. Hapag-Lloyd, together with Global Feeder Shipping, is launching a Red Sea service linking Nhava Sheva and Mundra with Aqaba, Jordan, and Sokhna, Egypt.

The developments add further routing and capacity considerations for exporters using Middle East gateways, particularly where transit reliability, freight rates, and inland connections affect supply-chain planning.

More importantly, it seems the industry is undergoing a period of strategic rerouting to maintain supply-chain stability amid regional instability.

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