Shippers are relying more on Dammam Port, Saudi Arabia’s second-biggest port, as tensions in the Red Sea drive up sea freight costs to Jeddah Port, Gulf News reports. UAE-based shippers are also relying on overland routes to get goods to Saudi Arabia instead of their regular seaborne routes. Shipments are then sent out to other countries from Dammam.

“Dammam has become the single most important option for shippers — not just to keep costs down, but ensure they can deliver the orders from Saudi Arabia on time,” an undisclosed trader in FMCG goods told Gulf News. The route from Jebel Ali to Dammam fares AED 5k, inclusive of Saudi border charges.

As demand jumps, Mawani is upping the port’s capacity to hedge against the risk of Red Sea tensions escalating further, Mawani President Omar Hariri told Al Eqtisadiah. While information about the extent or scope of the upgrade wasn’t disclosed, the Dammam Port currently boasts a capacity of 105 mn tons. The impact of the tensions has been limited to transit shipments, while imports and exports haven’t been affected, Hariri added.

Exporters all around are looking for alternative routes: Container shipping costs from Europe to the Gulf have increased by USD 1k per TEU in recent weeks. Global air cargo tonnages have increased 24% from the previous week, with cargo owners increasingly eyeing air transport due to longer ocean voyages, Transport & Logistics Middle East reports, citing WorldACD Market Data.

Decoding industry speak: A TEU is the standard unit for a shipping container — the corrugated metal things you’ve seen being hauled on highways, stacked in ports, and carried on the deck of vessels. It stands for a twenty-foot equivalent unit.

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