Shipping lines cut Middle East routes, threatening global trade

Disruptions a major blow to Persian Gulf, which relies on trade, tourism and transport

- 

Smoke rising from the Jebel Ali port in Dubai after an Iranian missile attack on March 1. Jebel Ali adjoins one of the world's largest industrial parks that is a key crossroads for goods shipped from Asia to Africa, Europe and the US East Coast.

(PHOTO: BLOOMBERG)

The world’s largest container carriers are rerouting ships to avoid the Persian Gulf as a widening military conflict pitting the US-Israeli alliance against Iran threatens to disrupt global merchandise trade.

MSC Mediterranean Shipping, the top container line, halted cargo bookings for the Middle East, while No. 2 A.P. Moller-Maersk and Hapag-Lloyd suspended all crossings in the Strait of Hormuz.

DP World earlier suspended operations at the Jebel Ali port in Dubai, according to a notice sent to customers and seen by Bloomberg on March 2. The company later said all four of its terminals are operational.

Japanese shipping companies also suspended operations in the Persian Gulf. Nippon Yusen KK temporarily halted its operated vessels from travelling through the Strait of Hormuz, said a spokesperson. Kawasaki Kisen Kaisha has instructed its ships in the Persian Gulf to remain on standby, while Mitsui O.S.K. Line ordered its vessels to wait in safe waters.

The logistics disruptions come as a major blow to the region, where business hubs such as Dubai rely on trade, tourism, transport and finance, along with a reputation as a haven in a troubled neighbourhood.