Middle East logistics disruption halts fresh produce exports to Gulf markets
Escalating conflict in the Middle East has slowed sea and air routes, leaving thousands of containers of fruit and vegetables stranded during the peak Ramadan trade.
MIDDLE EAST – Shipping and air freight routes serving Gulf markets have slowed sharply as tensions in the Middle East disrupt key corridors, forcing exporters across Asia and Africa to hold back cargo and absorb rising costs.
Clarksons Research reports that about 3,200 vessels remain inside the Gulf, equal to around 4 per cent of global shipping tonnage. Around 500 vessels are waiting off the coasts of the United Arab Emirates and Oman as operators avoid the Strait of Hormuz.
“About 10% of the container ship global fleet is caught up in this,” said Nixon Jeremy, CEO of Ocean Network Express, at the S&P Global Market Intelligence TPM26 conference in Long Beach. “All of that cargo is going to start backing up.”
Major carriers, including MSC, have stopped taking new bookings to parts of the Middle East. Some vessels now sail around the Cape of Good Hope, which increases transit times and fuel costs. At the same time, several protection and indemnity clubs have withdrawn war risk cover for ships entering the Persian Gulf from March 5. Without insurance, vessels cannot sail.
Ports remain open but tensions rise
Despite the strain, DP World confirmed that terminals at Jebel Ali Port in Dubai continue to operate. The company said it has tightened safety steps and maintains close contact with authorities.
“The safety and well-being of our employees, customers, and partners is our highest priority. We continue to monitor the situation closely and take all necessary precautions,” DP World said.
Dubai authorities reported that debris from an aerial interception caused a fire at one berth at Jebel Ali, which Dubai Civil Defence contained. AD Ports Group also said its network remains operational under crisis plans.
India and Bangladesh face heavy losses
In India, exporters report around 1,000 containers of produce stranded at Mumbai ports, mainly at Jawaharlal Nehru Port Authority. More than 150 containers of bananas, pomegranates, and watermelons sit idle, while hundreds of grape and onion containers await clearance. Traders estimate that 500 to 600 containers already dispatched have not reached buyers.
Imports have also stalled. Around 800 to 900 containers of apples, kiwis, and dates bound for India remain stuck at Iranian ports. Traders say apple prices in India have risen by ₹30 to ₹40 per kilogram, equal to about US$0.36 to US$0.48 per kg, while local banana and grape prices have dropped.
Air freight has suffered similar setbacks. At Calicut International Airport in Kerala, exporters had to offload about 30 tons of vegetables after flight cancellations.
“There were substantial orders for fruits such as bananas and pineapple in view of Ramadan. But exports from Karipur airport have almost come to a standstill,” said Abdurahman M, managing director of Marvel Exports.
In Bangladesh, Mohammad Mahbub Rana of Green World Impact said daily air exports worth about US$250,000 from Chattogram have stopped. “After cancellations of flights, almost all prepared vegetables went to waste,” he said.
Egyptian orange season hit at key moment
The conflict has also hit Egypt at a sensitive point in its Valencia orange campaign. Mostafa Ali, CEO of Premium Sourcing, said exporters had expected strong March demand from Asia after the Chinese New Year.
“All Egyptian exporters were expecting strong activity in early March,” Ali said. “In fact, the Valencia orange season was going quite well until Saturday, when the outbreak of war took us by surprise.”
He added that some shipping lines now charge US$4,000 per container in war risk insurance. Longer routes to Asia and blocked access through the Red Sea have already delayed shipments, including cargo to Mombasa.
“We remain optimistic because we know there is strong demand for Egyptian oranges in South and East Asia,” Ali said. “We will have to adapt to logistical complications, but the demand is there.”
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