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High Impact

Middle East Ports Hit with New Congestion Surcharges

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The signal

Container shipping lines are expanding congestion surcharge programs across Middle Eastern gateway ports, with Regional Container Lines now charging $450 per container at Khor Fakkan following similar levies at Jeddah. This escalating fee structure reflects mounting operational pressures at alternative hub ports as capacity constraints persist, forcing carriers to recoup incremental costs through direct customer charges. The spread of surcharges from one port to multiple facilities signals a structural shift in how the industry is managing regional bottlenecks.

Rather than absorbing costs internally, carriers are transparently passing expenses to shippers, raising total logistics costs for companies routing cargo through the Middle East. This trend underscores the fragility of regional port infrastructure and suggests that until fundamental capacity relief materializes, surcharges will likely continue expanding to additional terminals. For supply chain professionals, this development warrants immediate review of Middle East routing strategies, cost modeling, and contingency plans.

Companies should assess whether alternative gateways or transit routes offer better cost-to-service tradeoffs, and consider whether consolidating volume onto fewer carriers can yield surcharge exemptions or negotiated relief.

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