Date: March 14, 2026
As the US-Israel-Iran conflict continues to escalate, security conditions in the Strait of Hormuz show no signs of improvement. This critical global oil chokepoint faces persistent disruption, prompting major Gulf nations to take swift action.
Saudi Arabia, the UAE, and Oman are now activating alternative logistics corridors, port capacity, and overland routes to ensure the smooth flow of essential goods—including steel.
The “logistics race” to bypass the Strait of Hormuz is now in full swing across the Gulf region.
Why This Matters for Steel Procurement
For Gulf countries reliant on steel imports, the Strait of Hormuz crisis directly threatens supply chain stability. Saudi Arabia’s eastern industrial zone (Dammam, Jubail) accounts for over 60% of the kingdom’s steel consumption—and virtually all imports to this region depend on Strait transit.
The good news? Alternative solutions are already operational.
Saudi Arabia: Red Sea Corridor Opens Overland Arteries
The Saudi Ports Authority has launched an “Integrated Logistics Corridor Plan,” connecting Red Sea ports to neighboring Gulf states via dedicated overland freight routes.
Core Strategy: A reverse “west-to-east” logistics model—cargo originally destined for eastern ports or other Gulf gateways is now diverted to Red Sea terminals, including Jeddah Islamic Port, King Abdullah Port, Yanbu Commercial Port, Yanabu Industrial Port, NEOM Port, Jizan Port, and Jizan City Port.
How It Works: After discharge at these terminals, cargo moves via dedicated trucking corridors across Saudi territory, ultimately reaching destinations in Kuwait, Bahrain, Qatar, the UAE, Oman, Iraq, Jordan, and Yemen. This effectively bypasses the Strait of Hormuz entirely.
Policy Support: Saudi ZATCA has streamlined customs procedures at all entry points, permitting goods to transit Saudi territory under bonded customs regimes—by land, sea, or air—for onward delivery to neighboring Gulf states.
UAE: Sea-Land Intermodal + Rail Surge
The UAE has adopted a strategy of “east coast discharge, overland transfer.” Cargo is being systematically diverted to ports outside the Strait of Hormuz on the Gulf of Oman coast, including Fujairah and Khor Fakkan, which face lower Iranian risk exposure.
Emergency Arrangements: DP World has confirmed that containers discharged at east coast ports can move via bonded trucking to Jebel Ali Port for final clearance, completely bypassing the Strait.
Rail Capacity Surge: Over the past nine days, Etihad Rail freight services have operated more than 100 trains, moving approximately 459,000 tonnes of cargo and nearly 8,000 containers. Multiple new rail corridors have been activated, with five additional trains deployed as contingency capacity.
Oman: Establishing Alternative Gateway Ports
Leveraging its strategic geographic position outside the Strait of Hormuz, Oman is actively promoting its three major ports—Sohar, Duqm, and Salalah—as alternative entry points to the Gulf region.
Key Advantage: These ports directly face the Arabian Sea and Indian Ocean, completely avoiding Strait transit risks.
Accelerated Clearance: Oman has introduced measures allowing empty trucks from GCC countries to enter Omani ports for cargo loading, with customs permissions processed electronically to expedite cross-border operations.
Land Bridge Option: Sohar Port connects directly to Saudi Arabia via the Rub Al Khali (Empty Quarter) highway, enabling seamless connectivity to Saudi and other GCC markets.
Impact Assessment for Steel Procurement
| Buyer Type | Level of Impact | Details |
|---|---|---|
| Saudi Eastern Province projects (Dammam/Jubail) | ⭐⭐⭐ Helpful | Alternative supply via Jeddah-land bridge or Sohar-land bridge available, but with higher costs and longer lead times |
| Saudi Western Province projects (Jeddah) | ⭐⭐⭐⭐⭐ Highly Helpful | Jeddah unaffected by Strait closure; direct imports possible |
| UAE buyers (Jebel Ali/Khalifa Port) | ⭐⭐⭐⭐ Significantly Helpful | Alternative supply via Sohar-land bridge or Fujairah transshipment available |
| Kuwait/Qatar buyers | ⭐⭐⭐ Helpful | Supply possible via Jeddah-land bridge or Sohar-feeder-land bridge |
Cost Impact: Current freight rates have surged significantly, with additional land transport costs. Overall lead times are extended compared to normal sea routes—but predictable, and far preferable to indefinite waiting. Major carriers including CMA CGM have resumed Middle East bookings, explicitly routing cargo through Sohar Port’s bonded land bridge.
Actionable Recommendations
- Saudi Eastern Province buyers: Adopt Sohar-land bridge or Jeddah-land bridge solutions; accept additional costs ($55–105/ton estimated); increase safety stocks to 2-3 months
- UAE buyers: Prioritize Sohar transshipment options; confirm vessel schedules with carriers that have resumed bookings (e.g., CMA CGM)
- Kuwait/Qatar buyers: Route via Sohar or Jeddah; ensure SABER/SASO certifications are in place for smooth clearance
- All buyers: Accept multimodal logistics as the “new normal”—with Strait tensions unlikely to ease soon, combined sea-land intermodal transport will remain the primary supply route for the next 1-2 months
The “Strait chokehold” on Gulf imports is not yet fully broken—but the coordinated actions of Saudi Arabia, the UAE, and Oman demonstrate that supply chain resilience can be actively built. For steel procurement managers, the path forward is clear: accept the new normal, proactively plan alternative routes, and stop waiting for the Strait to reopen.
📧 For further analysis on client-specific multimodal costs or customized routing options, contact: amy@amyinsights.com