en.Wedoany.com Reported - Mediterranean Shipping Company (MSC) has launched a multimodal transshipment corridor in Saudi Arabia connecting major ports on the Red Sea and the Arabian Gulf, addressing cargo transshipment challenges amid port disruptions in the Persian Gulf region. MSC developed this integrated service in collaboration with several local entities, including the Saudi Ports Authority (MAWANI) and the Zakat, Tax and Customs Authority (ZATCA), describing it as a first for the region.

Hisham Al Ansari, President and CEO of MSC Saudi Arabia, explained that the new corridor directly connects King Abdullah Port and Jeddah Islamic Port, while linking to the Arabian Gulf side via King Abdulaziz Port in Dammam. MSC's multimodal logistics subsidiary Medlog is leading operations, with the route connecting road and rail through the Riyadh dry port, forming an inland corridor across Saudi Arabia and providing door-to-door connectivity for transshipment cargo.

Medlog has successfully completed a trial shipment along this corridor. Industry sources believe the multimodal solution helps alleviate transit congestion and enhance regional supply chain resilience. One logistics executive noted that this is a key step for Saudi Arabia's logistics sector, allowing importers to flexibly choose entry ports amid the current volatile situation.

With congestion intensifying at Jeddah port, MSC has advised customers to reroute transshipment cargo through King Abdullah Port. Carriers operating Middle East routes are all facing difficulties in securing alternative gateways due to inland capacity shortages and complex cross-border procedures. CMA CGM has stopped accepting Middle East cargo that includes inland transport segments, which are typically arranged by shippers themselves.

Transport disruptions are keeping freight rates elevated on India-to-Saudi routes. Average booking rates from Nhava Sheva (JNPA) are: USD 6,000 per standard container and USD 6,600 per 40-foot container to Jeddah/King Abdullah Port; and USD 5,800 and USD 7,000 respectively to Dammam.

The conflict is also impacting terminal operations at DP World, with its flagship Jebel Ali Port suffering the most severe damage. Data shows that Jebel Ali Port handled only 374,000 TEUs in the second quarter, a year-on-year decline of 90%, with port facilities remaining operational amid intermittent closures.

With maritime routes through the Strait of Hormuz under sustained pressure, DP World has invested in two new terminals in Fujairah, which is regarded as a lifeline for Middle East supply chains amid disruptions. DP World stated that the new facilities will provide shippers with greater flexibility, more choices, and stronger supply chain resilience, while reinforcing confidence in the UAE's position as a global trade and logistics hub.