Freight rates on the Far East to Middle East trade have climbed to record levels this peak season, as importers rushed cargo into Gulf economies that sit behind the Strait of Hormuz. The resulting surge in volumes has also triggered fresh congestion at the region's key transshipment ports, forcing carriers to rethink how they serve the corridor.

How Much Have Rates Risen?

Data from Container Trades Statistics shows the Far East to Middle East and Indian subcontinent lane recording the steepest rate growth of any major container trade so far this year. CTS chief executive Nigel Pusey said the price index for Greater China to the Middle East stood at 392, up 250% since the start of the year and up roughly 15.5% month on month. That increase came even though year-to-date volumes on the lane are down 12%, suggesting the jump has been driven heavily by a short burst of demand rather than sustained volume growth. Separate spot rate data from the Shanghai Containerised Freight Index shows the Shanghai-Dubai leg holding at around $6,500 per 40ft throughout October, roughly 300% higher than the level recorded at the end of October 2025.

Why Did Cargo Volumes Spike?

According to CTS, September marked the first month since the onset of regional conflict that China to Middle East volumes rose above the same period a year earlier. Pusey described it as a boom month, with a surge of cargo moving in late August and early September as shippers tried to get goods through. He cautioned that volumes were likely to ease again in October, partly because attacks in the region resumed early in the month, adding fresh uncertainty to the trade.

Which Ports Are Affected by Congestion?

The surge in cargo has caused significant congestion at Fujairah and Khor Fakkan, the two main ports outside the Strait of Hormuz that serve as landbridge gateways for Gulf Cooperation Council importers. Linerlytica reported that port congestion at Middle East ports has reached a record high. MSC has continued to call at Khor Fakkan on a new Far East-Middle East service using large 24,000 teu vessels despite what Linerlytica described as severe berthing delays. Pusey noted that some carriers have already paused calls into Khor Fakkan and Fujairah, and expects further booking pauses or network adjustments in October and into November as lines try to let congestion ease.

How Are Carriers Splitting Their Networks?

The industry has broadly split into two camps over which port to prioritize. MSC and Gemini partners Maersk and Hapag-Lloyd have concentrated services at Khor Fakkan, while CMA CGM and its Ocean Alliance partners favor Fujairah. Both ports are also seeing growing calls from smaller Asian and Middle East regional carriers, adding to the pressure on berth availability.

What This Means for Shippers and Cargo Owners

Shippers moving cargo into the Gulf should expect elevated rates to persist in the near term, even if volumes ease as some analysts anticipate. Congestion at Khor Fakkan and Fujairah means booking delays, berthing waits and possible carrier-imposed pauses on new bookings into these ports should be factored into planning and transit time expectations. Maersk reports that shippers are increasingly turning to the Saudi Red Sea port of Jeddah as an alternative landbridge gateway into Saudi Arabia and the wider Gulf, a trend it expects to continue into November for those seeking to reduce exposure to Hormuz-related disruption. However, Maersk cautions that capacity, border processing and onward delivery arrangements should be confirmed for each shipment before switching routings. Given the volatility in both pricing and port performance, cargo owners should track vessel schedules and port conditions closely and build flexibility into bookings, rather than relying on a single gateway or carrier network.

Sources: theloadstar.com