In light of the situation in the Red Sea, companies have been forced to look for alternatives to ensure the flow of trade, particularly from Asia to Europe.
In addition to air freight, land transport from the eastern side of the Arabian Peninsula to the Mediterranean is one of the viable alternatives.
Container carriers, such as Hapag-Lloyd, considered this option, where containers could be transported with trucks from the Port of Jebel Ali in the UAE through Saudi Arabia and Jordan, on to Israel and further to Europe.
Other land connections are also possible, linking eastern Saudi ports with Jeddah Port on the west coast.
Companies testing land routes
These routes through the heart of the Middle East offer an immediate solution to shipments trying to avoid the Houthi zones near the Bab el-Mandeb Strait, where drone attacks have forced hundreds of commercial vessels to sail longer distances via the Cape of Good Hope.
According to Bloomberg, some companies have already taken this route, particularly for cargo from India, Thailand, South Korea and China. To reduce costs, some shippers are also moving cargo in the opposite direction from Europe to Asia through land.
Challenges of land transport through the Middle East
Cargo transport through the Arabian Peninsula decreases the length of the journey drastically. Data from S&P Global Market Intelligence estimates the drive from Jebel Ali to Haifa would take three to four days. This is significantly shorter than the average of ten days when sailing around Africa.
However, it cannot keep up with the vast number of containers a ship can transport in one go at sea. Therefore, it could only offer a temporary fix until the situation returns to normal.
Bloomberg cited Hapag-Lloyd's spokesman, Nils Haupt, saying such plans provide a short-term solution for moving limited amounts of cargo and "not thousands of containers."
He adds that land transport is "neither fast nor easy" but ensures the continued flow of trade through ports in the region.
To explore the available options for transporting your shipment through land, feel free to contact your Kuehne+Nagel representative or visit our website.
