<div>Aramex Group CEO Amadou Diallo, who joined the Dubai-listed logistics company on May 1, 2026, told Khaleej Times that freight rates are unlikely to normalize for six to twelve months even after peace returns to the region, citing the absence of major shipping lines and airlines, widespread port congestion, and the time required to replenish depleted supply chains . His assessment underscores the deep structural damage inflicted on regional logistics networks by the prolonged disruption of the Strait of Hormuz and the broader US-Iran conflict.</div><div><br></div><div>The CEO declined to predict when the conflict itself might end, but was unequivocal about the post-peace timeline. “At the moment we have a lot of shipping lines that are not coming. We have a lot of airlines that are not coming. You have ports that are congested,” Diallo said, adding that until supply chains are re-established, “the effect will remain inflationary” . Shipping freight charges have already jumped from roughly $2,000 to around $12,000 per container due to the war, high oil prices, the closure of the Strait of Hormuz, and a container shortage .</div><div><br></div><div>Despite the challenging operating environment, Aramex delivered its strongest quarterly revenue performance on record in Q2 2026, with group revenues rising 22% year-on-year to AED 1.83 billion. Freight forwarding achieved its highest quarterly revenue in company history, supported by what Diallo described as pricing discipline and the company’s diversified multimodal offering . Net profit surged sevenfold to AED 47 million, while EBIT nearly tripled to AED 87 million on a normalized basis .</div><div><br></div><div>The growth was powered largely by alternative trade routes that Aramex activated to keep European shipments flowing into the GCC. These include land corridors linking Turkey to the region, as well as gateways through Sohar, Salalah, and Jeddah that bypass the Strait of Hormuz entirely . Diallo credited the company’s local presence and local talent for its ability to keep trade moving even when many ports were blocked, a factor that proved critical when global carriers suspended or rerouted services .</div><div><br></div><div>The conflict has also reshaped demand patterns in ways that extend beyond freight. Diallo noted that fewer tourists have dampened demand in e-commerce, fashion, and retail, while higher fuel prices and the departure of some expatriates have added cost pressure . Aramex has applied marginal surcharges on energy-intensive last-mile services, but Diallo emphasized the need to ensure customers and consumers can still afford their products, reflecting sensitivity to demand elasticity in a region where purchasing power is already strained .</div><div><br></div><div>A significant silver lining for Aramex and the UAE has been the acceleration of a trend toward regional contract logistics and warehousing. Diallo said the company has received many requests for contract logistics solutions based in the region, a shift that began before the conflict but has accelerated as businesses seek to position closer to customers and reduce exposure to ocean freight volatility. Demand for warehousing is particularly strong in the UAE, Jeddah, Turkey, and India . This shift positions the Middle East as an increasingly important node in global logistics, rather than merely a transit corridor.</div><div><br></div><div>For the wider logistics sector, Diallo’s warning serves as a reality check on expectations that a peace agreement alone would quickly restore normalcy. The physical assets—vessels, aircraft, containers—have been repositioned far from the region, and insurers will remain cautious long after shooting stops. Aramex’s own strategy of building multimodal resilience and regional warehousing capacity reflects a broader recognition that supply chain certainty, rather than cost optimization alone, has become the paramount consideration for shippers navigating the current environment .</div>