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Middle East War Disrupts Global Shipping, Stranding Food, Animals

Financial Times Companies •
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The Middle East conflict has left 90 container ships stranded in the Gulf, disrupting vital trade routes and stranding cargoes of fresh food and live animals. The Strait of Hormuz, a critical artery for global shipping, has been effectively shut down, forcing vessels to seek alternative ports outside the region. Refrigerated containers holding perishable goods and shipments of live animals for halal consumption are among the most urgent concerns.

Major transshipment hubs like Dubai's Jebel Ali and Oman's Salalah have suspended operations, pushing congestion to ports as far as Singapore, Malaysia's Tanjung Pelepas, and Colombo in Sri Lanka. Singapore, already grappling with congestion from US tariffs and manufacturing shifts out of China, now faces wait times of 6.5 days to dock and unload, up from a year-to-date average of 2.9 days. The disruption is causing widespread fuel shortages, with over 100 tankers stuck in the region.

Shipping giants like Maersk, Hapag-Lloyd, and MSC are scrambling to reroute vessels and secure storage space. MSC has invoked a 19th-century seafaring law to offload containers at customers' expense, adding an $800 fee. Logistics executives warn that recovery could take months, with DHL chartering hundreds of lorries to move shipments by land. The conflict's ripple effects are expected to drive up costs and strain global supply chains for the foreseeable future.