Why are carriers rerouting to Gulf landbridges instead of using the Strait of Hormuz directly?

Ongoing vessel security concerns and fluctuating threat levels around the Strait of Hormuz have prompted major carriers to establish bypass networks through ports like Jeddah, where containers are loaded onto overland transport (landbridges) to reach final Gulf destinations. This approach reduces exposure to security risks and provides more predictable transit windows.

Are spot rates into Jeddah going down or up?

According to the article, spot rates into Jeddah are tapering off—meaning they are declining from earlier peak levels. This reflects market normalization as the new landbridge networks mature and carriers gain operational efficiency in the reconfigured routes.

How long will these alternative routing arrangements stay in place?

The article indicates these routes are expected to remain the norm for at least another month, but likely longer. Carriers have introduced reconfigured networks that will take significant time to unwind, suggesting a structural shift that could persist for months even if security conditions stabilize.

What triggered the announcement by Maersk and Hapag-Lloyd?

The Gemini Cooperation partners announced the closure of two feeder services connecting their hubs as they consolidate operations around the new landbridge model. This reflects carriers optimizing their networks for the new security reality.

What should supply chain teams do to prepare for this prolonged disruption?

Teams should budget for higher baseline costs associated with landbridge routing, build contingency into lead times for Gulf-bound shipments, and establish relationships with carriers operating the new networks. Expect longer but more stable transit windows compared to traditional routes during this transitional period.

Shipping & Freight

High Impact

Gulf Landbridges Stabilize as Jeddah Spot Rates Normalize

Apr 24, 2026

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The signal

Container shipping into the Gulf is undergoing a structural shift as major carriers like Maersk and Hapag-Lloyd formalize landbridge routing through bypass ports such as Jeddah to mitigate vessel security risks around the Strait of Hormuz.

Spot rates into traditional Gulf destinations are beginning to stabilize and decline as these new networks mature and become operationally normalized—a sign that market participants are accepting higher baseline transit costs and complexity in exchange for security predictability.

This reconfiguration suggests the disruption will persist for months rather than weeks, with carriers having already invested in network redesigns that will take considerable time to reverse even if Strait security conditions improve.

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if landbridge capacity becomes bottlenecked during peak season?

Simulate a 25% reduction in available landbridge capacity over the next two months due to increased import volumes or port congestion at Jeddah, and model the impact on transit time reliability and spot rate volatility for Gulf-bound containers.

Run this scenario

Simulation Suggestion

this month

What if landbridge transport costs surge due to fuel or labor inflation?

Simulate a 12-18% increase in landbridge surcharges (fuel, labor, handling) over the next quarter, and model the impact on total landed costs for Gulf imports and the potential pressure on spot rate premiums.

Run this scenario

Simulation Suggestion

strategic

What if Strait of Hormuz security stabilizes, allowing direct routing to resume?

Model a scenario where vessel security concerns diminish over the next 6-8 weeks, allowing carriers to gradually shift containers back to direct Strait routing. Simulate the cost savings and timeline compression, and the lag time required for carriers to unwind reconfigured networks.

Run this scenario

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