How Dubai's Businesses Are Keeping Cargo Moving Despite the Middle East Crisis

The morning of February 28, 2026 changed the logistics landscape of the entire Middle East overnight. Following coordinated US and Israeli strikes on Iran, the Islamic Revolutionary Guard Corps broadcast warnings to all vessels in the Strait of Hormuz that passage was "not allowed." Within hours, vessel traffic through the strait had fallen by approximately 70%. For businesses importing and exporting through Dubai, the disruption was immediate, severe, and unlike anything the region had seen since the COVID-19 shipping crisis.

This is what happened, what it means for your cargo right now, and most importantly — how businesses in Dubai are adapting and keeping their supply chains moving despite the chaos.

What Happened to Dubai's Ports and Airports

The speed of disruption caught even experienced logistics operators off guard. DP World temporarily suspended operations across Jebel Ali terminals as a precautionary measure following an incident linked to intercepted aerial threats, with a reported fire within the port. Vessel delays, yard congestion, and recovery disruption followed even after reopening.

MSC — the world's largest container line — halted cargo bookings for the Middle East entirely. Maersk and Hapag-Lloyd suspended all vessel crossings through the Strait of Hormuz. Hapag-Lloyd announced a war risk surcharge of $1,500 per twenty-foot container for deliveries in the region, effective immediately.

The air freight picture was equally severe. Emirates SkyCargo suspended flights until further notice due to evolving airspace restrictions, while KLM cancelled all flights to Dubai, Riyadh and Dammam, and Turkish Airlines announced cancellations across multiple Middle East destinations. Gulf carriers Qatar Airways and Emirates SkyCargo together make up approximately thirteen percent of global air cargo capacity — their grounding sent shockwaves through supply chains far beyond the Middle East.

For businesses in Dubai, this was not an abstract geopolitical event. It was containers stuck at sea, stock not arriving, clients waiting, and costs spiking without warning.

The Strait of Hormuz Crisis — Why It Hits Dubai Harder Than Anywhere

The Red Sea disruption that began in late 2023 was damaging, but it had a workaround — vessels could reroute around the Cape of Good Hope, adding two to three weeks to transit times but still reaching their destinations. The Persian Gulf crisis is fundamentally different. A full restriction in the Persian Gulf does not just delay cargo — it removes the destination entirely for Gulf-bound shipments. There is no Cape of Good Hope equivalent for Jebel Ali.

The Strait of Hormuz facilitates eleven percent of global maritime trade volume, with over thirty million TEUs of containerised port traffic passing through its vicinity annually. It is also the corridor through which approximately twenty percent of the world's daily oil supply transits. When this strait is under threat, the consequences cascade immediately across freight rates, fuel costs, insurance premiums, and carrier availability simultaneously.

As Peter Sand, chief analyst at freight intelligence platform Xeneta, stated directly: "The repercussions of the joint military operation will shatter hopes of a large-scale return of container shipping to the Red Sea in 2026. There is no viable alternative to getting containers in or out of Middle East Gulf ports such as Dubai's Jebel Ali."

For Dubai-based businesses, this means accepting a new operational reality — at least in the short to medium term — where shipping routes are longer, costs are higher, timelines are less predictable, and flexibility in logistics partners is not a luxury but a survival requirement.

What This Means for Your Freight Costs Right Now

The financial impact is landing directly on importers and exporters in Dubai. Spot container rates are already rising for services in the conflict zone, and cargo owners should prepare for a ripple effect with rising rates on other major deep-sea trade lanes as well.

Oil prices surged to $80–$85 per barrel as of early March 2026, up from $70–$75 before the conflict escalated. Experts predict prices may reach $100 per barrel or higher — with some forecasts suggesting Brent crude could surpass $120 per barrel in extreme scenarios. Every dollar increase in oil prices feeds directly into fuel surcharges on both air and ocean freight within weeks.

War-risk insurance premiums — which had already climbed to extraordinary levels during the Red Sea crisis — are surging again. Even as the situation stabilises, risk-related costs are unlikely to revert to pre-crisis norms quickly. Shipowners and charterers must navigate elevated premiums and layered security protocols as the new operating normal.

For businesses that locked in annual freight contracts before the crisis, some protection exists. For those on spot rates — which includes the majority of SMEs in Dubai — the coming weeks will bring sharply higher invoices unless alternative routing solutions are implemented now.

The Alternative Routes Dubai Businesses Are Using Right Now

The logistics industry in Dubai is not standing still. Experienced freight operators are already implementing alternative routing strategies that minimise disruption — and businesses that move quickly to align with these strategies will weather the crisis better than those waiting for normalcy to return.

For cargo bound for the UAE, routing via Khorfakkan Port on the UAE's east coast — which sits outside the Persian Gulf on the Gulf of Oman — is the most practical immediate alternative. This eases the customs process since the final destination remains within the UAE, making clearance more straightforward and efficient.

For shipments from the UAE to the rest of the world, bookings are being moved through alternative ports including Sohar in Oman, Jeddah in Saudi Arabia, and Khor Fakkan — subject to carrier acceptance. These routes add transit time and cost but maintain cargo movement when Jebel Ali is congested or constrained.

For road freight, border crossings are currently functioning, and ground transport between Dubai and Saudi Arabia, Oman and other GCC countries continues — though security-related delays at checkpoints are being reported. For GCC-regional distribution, land transport has become the most reliable mode available right now precisely because it does not depend on port or airport operations.

On air freight, selected carriers including Emirates SkyCargo have resumed flights on a limited scale as airspace restrictions are partially lifted. However, capacity remains severely constrained compared to pre-crisis levels, and rates have spiked significantly. Priority should go to time-critical, high-value, low-weight cargo — not bulk commercial shipments.

What Every Dubai Business Needs to Do in the Next 30 Days

The businesses that come through this crisis in the best shape are not the ones waiting for shipping lanes to normalise. They are the ones actively restructuring their logistics approach right now. Here is what the most resilient operators in Dubai are doing.

First, review every open shipment and identify which are at direct risk — goods in transit through the Strait of Hormuz, booked on suspended carrier services, or awaiting air freight on suspended routes. Contact your freight forwarder immediately for a status update on each.

Second, expand your routing options. If your current freight partner is only offering one mode or one port, you are unnecessarily constrained. Re-routing ships adds time and cost, but a prolonged disruption places sustained pressure on both the energy market and global freight rates — the businesses that adapt routing strategies earliest lock in capacity and rates before congestion worsens.

Third, build buffer stock where possible. The single most effective supply chain response to unpredictable transit times is increasing safety stock on critical items. If your current warehousing capacity in Dubai does not support this, now is the time to secure additional storage.

Fourth, reassess your insurance coverage. Standard cargo insurance may not cover war risk incidents without specific endorsement. War risk premiums have surged and will remain elevated — but the cost of uninsured cargo loss in a conflict-zone incident makes adequate coverage a non-negotiable operational requirement.

Fifth, communicate proactively with your clients and suppliers. The businesses that lose relationships during logistics crises are those that go silent. The ones that strengthen relationships are those that communicate delays early, propose alternatives, and demonstrate that they are actively managing the problem rather than passively experiencing it.

How Shippify Is Keeping Dubai Businesses Moving Through the Crisis

In a market where shipping lines are suspending bookings, carriers are rerouting vessels, and standard logistics solutions are failing daily, the value of an experienced, agile, locally-rooted freight partner has never been clearer.

Shippify has been operating in Dubai's logistics market since 2017 — through the COVID-19 shipping crisis, the Red Sea Houthi disruption, and now the current escalation. That depth of experience means Shippify's team has established relationships with alternative carriers, access to Khorfakkan and Sohar routing options, established customs clearance processes through non-standard entry points, and the operational flexibility to pivot shipment plans in real time as the situation develops.

For businesses currently facing delayed sea freight, grounded air cargo, or uncertainty about their regional distribution, Shippify provides multimodal freight solutions — sea, air, and land — with the ability to combine modes and reroute dynamically based on what is actually moving right now, not what was moving last month.

Shippify's warehousing facility in Karama, Dubai also provides a critical buffer for businesses needing to increase safety stock while transit times are extended and unpredictable. Secure storage, inventory management, and same-city distribution mean your goods can arrive in Dubai and be held safely until onward routing is confirmed — rather than sitting in a congested port yard at additional demurrage cost.

This is not business as usual. But for Dubai businesses with the right logistics partner, it is manageable.

Contact Shippify now for a routing review on your current and upcoming shipments.

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