<p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">Trucking costs across the Gulf have risen exponentially as disruption to Red Sea shipping forces companies to divert cargo through alternative ports and overland routes, logistics executives told Arabian Gulf Business Insight (AGBI) . Rates have increased as much as fivefold this year, according to Akshay Anand, CEO of Saudi shipping company Al Barrak Group, who described the movement as having "gone through the roof" . The surge reflects a structural shift in how cargo reaches Saudi Arabia and other Gulf markets as traditional maritime corridors become unreliable.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The pressure intensified from August, when threats by Yemen's Houthis against Saudi shipping through the Bab al-Mandab strait further complicated regional trade flows . The strait, at the southern entrance to the Red Sea, is the chokepoint through which Saudi western ports are accessed from Asia and Europe. Houthi threats to prevent Saudi ships from passing through Bab al-Mandab have forced more shipping to route around the African continent and through the Suez Canal to Saudi ports, a detour that can add 20 days and millions of dollars to the passage of a container ship coming from China .</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The adaptation has been rapid but costly. Companies have shifted cargo flows toward alternative entry points in Oman, the UAE, and Jordan, from where goods are trucked overland into Saudi Arabia . Poul Hestbæk, CEO of Saudi logistics company Folk Maritime, described the dynamic succinctly: "The second there is a change of flow, it spikes. That's just the nature of it" . The spike is a direct function of the mismatch between the volume of cargo seeking alternative routes and the trucking capacity available to move it.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The economics of the overland alternatives are challenging. Trucking cargo from Omani ports like Salalah and Duqm to Saudi Arabia had been seen as prohibitively expensive before the crisis, according to Muhanad Ibrahim, supervisor of private transportation for Al Bassami, a Saudi company that specialises largely in transporting cars . From Jeddah, he said, the company can easily move 1,000 vehicles a day. From Oman, "the logistics aren't in place for that" . Oman's largest container ports can require driving 2,000km to Saudi Arabia, potentially tying up trucks and their cargo on highways and at border customs for days on a single journey .</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">The impact on fleet utilisation is visible in how trucks are being deployed. While Al Barrak has not added to its 1,000 lorries, they are being driven considerably farther, according to Anand . "As we speak we have ships with cargo going through Jeddah, Yanbu, King Abdullah Port, all across the western seaports," he said. "At the same time, alternate trade routes come through Oman, Fujairah and Khor Fakkan [in the UAE]" . The same fleet is covering more distance per journey, effectively reducing capacity available for other cargo and reinforcing the upward pressure on rates.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">A notable feature of the current disruption is that the logistics industry has adapted more effectively than it did at the outset of the crisis. Following the outbreak of war with Iran, the effective closure of the Strait of Hormuz was initially met with a slew of force majeures, as companies claimed an inability to fulfill contracts . This time around, shipping companies have become more comfortable with alternative routes and are more confident in their ability to switch quickly between them. "You see different trade routes being used all the time," Anand said. "If one closes down for whatever reason, we have others" .</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">For Indian exporters and logistics operators with Gulf exposure, the trucking cost spike adds a layer of complexity to supply chain planning. Cargo destined for Saudi Arabia or other Gulf markets may face higher inland transport costs depending on the port of entry chosen, and the reliability of overland routes through Oman, the UAE, or Jordan depends on border clearance times and road conditions that are outside the shipper's control. The fivefold rate increase is an extreme case, but it illustrates the direction of pressure across the region's landside logistics networks.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen, Ubuntu, Cantarell, "Open Sans", "Helvetica Neue", sans-serif; font-size: 16px;"><span class="">Looking ahead, the trajectory of Gulf trucking costs will depend on whether Red Sea shipping conditions improve and whether the overland alternatives can build sufficient capacity to handle sustained volumes. The Houthi threat to Saudi shipping through Bab al-Mandab has not diminished, and the maritime security environment in the Gulf remains volatile. For logistics companies, the current environment rewards flexibility and route diversity, but it penalises cost efficiency. The fivefold rate increase is the price the market is paying for resilience, and it is a cost that ultimately flows through to the price of goods across the region.</span></p>
Gulf Trucking Rates Surge Fivefold as Red Sea Disruption Pushes Cargo onto Overland Routes
Trucking costs across the Gulf have risen exponentially, with some rates increasing as much as fivefold this year, as disruption to Red Sea shipping forces companies to divert cargo through alternative ports in Oman, the UAE, and Jordan for overland transport into Saudi Arabia. Logistics executives told AGBI that demand for road cargo has soared since August, when Houthi threats against Saudi shipping through Bab al-Mandab intensified. The shift has pushed companies to find "more creative ways of moving cargo," even as overland alternatives remain less cost-effective than the maritime routes they replace.
