Far East-Middle East rates surge 250% as port congestion hits record

Container freight rates on the Far East to Middle East corridor have reached historic highs, climbing 250% since the beginning of the year according to Container Trades Statistics. A surge in cargo volumes during late August and early September, coupled with ongoing geopolitical tensions affecting the Strait of Hormuz, has overwhelmed capacity at key Gulf ports, particularly Khor Fakkan and Fujairah. The spot rate from Shanghai to Dubai has held at approximately $6,500 per 40ft container, representing a 300% increase compared to October 2025 levels. This bottleneck is forcing strategic recalibration across the liner industry.

MSC, Maersk, and Hapag-Lloyd have consolidated services into Khor Fakkan despite severe berthing delays, while CMA CGM and its partners maintain focus on Fujairah. Facing capacity constraints and operational disruptions, carriers are now restricting new bookings and halting service calls to allow congestion to ease. Shippers are increasingly turning to the Saudi Red Sea port of Jeddah and the Saudi landbridge as alternatives to reach Gulf destinations, signaling a potential structural shift in regional gateway preferences. Supply chain teams must respond with urgency.

Those dependent on Gulf import flows face extended transit windows, elevated costs, and reduced service frequency. Diversification of entry points and proactive coordination with freight forwarders on alternative routings through Saudi Arabia have become operational necessities rather than contingency options.