Strait of Hormuz Blocked: Global Shipping Giant MSC to Launch New Service Connecting Europe with Middle East
As the Strait of Hormuz remains blocked, Mediterranean Shipping Company (MSC), the world’s largest container shipping company, announced on Saturday, May 2nd, that it will launch a new service connecting Europe and the Middle East on May 10th.
This new route will utilize land truck transport across Saudi Arabia, combined with small feeder ships in the Persian Gulf, to replace the currently blocked global key waterway – the Strait of Hormuz route.
According to MSC’s plan, the inaugural voyage will depart from Antwerp, Belgium, making stops at several European ports, including ports in Germany, Italy, Lithuania, and Spain. After passing through the Suez Canal into the Red Sea, the ships will unload cargo at the two major ports on the western coast of Saudi Arabia – Jeddah and King Abdullah Port.
The goods will then be transported by trucks across Saudi Arabia’s interior to reach Dammam on the eastern coast, and then be shipped by small feeder vessels to ports in Abu Dhabi, Dubai’s Jebel Ali, Bahrain, Iraq, Kuwait, and other destinations. This “land-bridge” corridor stretches approximately 1,300 kilometers, passing through the Saudi capital, Riyadh.
The Strait of Hormuz is a vital artery for global energy and trade. Since the U.S. and Israel carried out military strikes against Iran on February 28th this year, disruptions in the strait’s traffic due to Iranian attacks and retaliation actions like collecting “passage fees” have severely restricted the situation, with no signs of reopening in the near term.
Despite the higher costs, longer duration, and increased carbon emissions of the land alternative, major shipping giants are forced to seek contingency plans in light of the “challenging Middle East situation.” In addition to MSC, shipping companies such as Hapag-Lloyd and Maersk have previously been working on establishing “land-bridge” solutions crossing Saudi Arabia and Oman.
Currently, ports on the eastern coast of Oman and the UAE, outside the strait, are experiencing a surge in cargo volume, prompting urgent expansion of truck transport capacity to cope with the increased shipping pressure.
(*Source: The article references reporting from Bloomberg)