August 6th, 2026 – Ocean carriers are facing severe capacity constraints at key Middle East hub ports as cargo continues to shift away from traditional Gulf routes toward multimodal and land bridge networks due to the ongoing conflict involving the United States and Iran.
One of the biggest pressure points is Saudi Arabia’s Port of Jeddah on the Red Sea, which has become a critical alternative gateway as carriers seek to minimize exposure to instability in the Persian Gulf. The surge in cargo volumes has resulted in significant congestion, prompting Mediterranean Shipping Co. (MSC) to introduce a congestion surcharge of $500 per TEU on all shipments bound for Jeddah. The surcharge applies to all cargo types, equipment, and existing service agreements.
To help customers avoid the added cost, MSC is allowing shipments to be rerouted through King Abdullah Port, located approximately 75 miles north of Jeddah, without affecting the terms of existing ocean contracts.
Shipping executives serving the India-Middle East trade lane report vessel waiting times at Jeddah averaging five to ten days, reflecting the growing operational bottlenecks.
The congestion has also prompted service adjustments across the region. Several feeder and regional carriers, including Folk Maritime and Turkon Line, have suspended direct calls at Jeddah. Meanwhile, CMA CGM has reduced its India-Middle East-West Mediterranean Medex service from weekly to fortnightly sailings from Jeddah to help limit operational disruptions.
Following guidance from the Saudi Ports Authority (Mawani), CMA CGM has also suspended acceptance of cross-border transit bookings through Jeddah under merchant haulage arrangements, where inland transportation is organized by the shipper. However, carrier haulage shipments, in which CMA CGM manages the inland transportation as part of a door-to-door service, continue to be accepted. The carrier has advised customers that all bookings must comply with Mawani regulations, with non-compliant shipments subject to cancellation and any resulting costs or penalties borne by the cargo owner.
Maersk has implemented similar measures. In a late-July operational update, the carrier temporarily paused new bookings involving landside cross-border transits through Jeddah for cargo moving between Saudi Arabia and the United Arab Emirates, Oman, and Qatar. It also suspended shipments routed through the Omani ports of Salalah and Sohar destined for the UAE, Saudi Arabia, Kuwait, Bahrain, and Qatar.
These restrictions come even as Maersk plans to resume Suez Canal transits for its Middle East-India-U.S. East Coast (MECL) service, which includes an eastbound call at Jeddah. The carrier has not confirmed whether the revised service rotation will remain in place.
Impact on Indian Trade
The ongoing conflict, now in its sixth month, is creating growing challenges for Indian exporters and logistics providers that rely heavily on Middle East supply chains.
Industry leaders note that congestion at regional hubs such as Jeddah is reducing schedule reliability and making supply chain planning increasingly difficult. While exporters can generally accommodate longer transit times when they are consistent, frequent schedule changes complicate procurement, inventory management, and customer delivery planning.
The tightening capacity has also driven freight rates sharply higher. Freight forwarders in India report that some major carriers, particularly CMA CGM, are quoting spot rates of up to $10,000 per FEU for shipments from Nhava Sheva Port to Jeddah.
Amid these disruptions, carriers are expanding alternative service options. Hapag-Lloyd, in partnership with Global Feeder Shipping, the short-sea shipping subsidiary of AD Ports Group, is launching a new Red Sea service linking Nhava Sheva and Mundra with Aqaba, Jordan, and Sokhna, Egypt. The new service will operate with a four-vessel rotation, with the inaugural call at Mundra scheduled for August 6th, providing exporters with an additional routing option as congestion continues to affect traditional Middle East gateways.
