DP World is building its way around the Strait of Hormuz

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WHAT WE’RE TRACKING TODAY

TODAY: DP World doubles down on Fujairah as the UAE's Hormuz hedge

Good morning, wonderful people. DP World just gave us the clearest answer yet to a question we keep asking around here: if Hormuz risk becomes permanent, what do you build? Turns out the answer is a port and a container terminal on Fujairah’s Gulf of Oman coastline.

That question looks a lot more urgent this morning: Two national oil tankers were targeted by Iranian cruise missiles in Hormuz last night, resulting in one death and eight injuries, the Emirati Defense Ministry said. The Mombasa and Al Bahiyah were attacked in Omani territorial waters and sustained material damage after fires broke out on board.

Washington’s response: put a price on it. The US is reinstating a naval blockade on Iranian shipping through the strait, President Trump said, with a twist — the US becomes Hormuz's “guardian” in exchange for a 20% cargo fee. Do the math on a full supertanker and you're looking at around USD 30 mn a transit.

And yet — the Suez comeback keeps quietly building anyway: Maersk is routing its WAF6 service (Middle East-Med-West Africa) back through the Red Sea instead of around the Cape of Good Hope, calling it another step toward a full return to the trans-Suez corridor. That’s the third Maersk line back on the route, after MECL returned Saturday and AE15 last week.

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Maersk’s third Suez return

Danish shipping firm Maersk is routing its solely operated WAF6 service — connecting the Middle East, the Mediterranean, and West Africa — back through the Red Sea instead of around the Cape of Good Hope on the Salalah-West Mediterranean leg, according to a statement. The company called it another step toward a gradual return to the trans-Suez corridor. WAF6 is the third Maersk service back on the route, after MECL returned on Saturday and the jointly run AE15 last week — widening what began as a single trial line into a broader Suez comeback.

What’s next: Maersk said it's keeping its Cape of Good Hope contingency plans in place and could revert individual sailings or the whole service if Red Sea security deteriorates.

Dreaming for Dreamliners

Riyadh Air is considering buying 25-30 Boeing 787 Dreamliners and could expand its existing Airbus orderbook, Reuters reports, citing industry sources. The PIF-owned carrier could announce that it is converting most of its 33 Boeing Dreamliner options into firm orders as soon as next week. Some of its options for 25 Airbus A350-1000s long-haul jets may also be converted into firm orders in the future. Details are still being discussed, the sources said.

ICYMI- The airline received its first two commercial Boeing 787-9 Dreamliners last month, marking the delivery of the first of a planned fleet of 72 Dreamliners. Riyadh Air plans to add one Boeing 787-9 monthly and launch two new destinations every two months, aiming for 100 cities by 2030. Landing this order would give the carrier the long-haul capacity to open more routes across Europe, Asia, Africa, and North America.

Groundwork for King Salman

Contractors have submitted prequalification bids for two new infrastructure packages at King Salman International Airport, covering a permanent east-west corridor and landside access roads serving the planned north and south terminals, Meed reported last week. The works will include roads, bridges, and tunnels, with the tenders expected to be issued soon.

Ground infrastructure is catching up to the airfield: The packages will build the ground network linking the airport's future terminals, following the selection of three contractor groups for Terminal 6’s apron, taxiways, and wider airfield infrastructure.

The bigger buildout: The 57 sq km airport is planned with six runways, six terminals, and a cargo and logistics hub, targeting 2 mn tons of cargo annually by 2030 and 3.5 mn tons by 2050.

Market watch

Oil prices jumped nearly 3% amid Hormuz supply disruption concerns, Reuters reports. Brent crude futures gained USD 1.50 to USD 84.80 / bbl by 03.30 GMT, while West Texas Intermediate (WTI) increased USD 1.70 to USD 79.84 / bbl.

The Baltic Index extends gains:The Baltic Exchange’s dry bulk index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.5% to 2,960 points on Monday. The capesize index gained 1% to 4,702 points, while the panamax index declined by 0.1% to 2,250 points. The smaller supramax index inched up 0.1% to 1,707 points.

Data point

155.1% — that’s how much Aqaba’s transit volumes grew in 1H 2026, rising to 60.2k TEUs. Iraq-bound transit did most of the heavy lifting, jumping to 24.7k TEUs from 2.9k, while reefer transit containers climbed 499% to 4.5k TEUs. The spike came even as Aqaba’s total container handling grew just 1% to 472.7k TEUs and vessel calls slipped 3.4% to 285.

PSA

CMA CGM rolls out another PSS: CMA CGM will apply a USD 1.5k per-container peak season surcharge (PSS) on dry cargo moving from the Indian subcontinent to Europe and the Mediterranean from 22 July, according to a statement. The fee will apply on top of basic freight, with other applicable charges billed separately.

Destination Sahel is back for a second edition — and this year, it's not just about the beach.

Gulf sovereign wealth funds are pouring billions into the North Coast, Gulf buyers keep showing up despite regional headwinds, and a new 400km master plan could reshape the whole coastline before summer’s out.

Over this season’s series, stay tuned to see who's really buying Sahel, where the money's coming from, and what could still go wrong.

Plus, the hotels, restaurants, and openings worth checking out this summer.

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Fujairah is getting a new DP World port as the UAE’s Hormuz hedge takes shape

DP World is in talks to build a new multipurpose port along Fujairah’s coastline and a separate container terminal at the emirate’s existing harbor, Financial Times reports, citing people familiar with the matter. That’s the latest piece in the puzzle for Fujairah, which sits on the Gulf of Oman, outside Hormuz — meaning it’s getting much more attention (and investment) these days.

What’s on the table: The Dubai-based port operator is discussing a term sheet with government officials, though ownership and financing haven't been finalized. A senior company official told the salmon-colored paper that the new port could be built within 18 months, with an initial investment in the hundreds of mns of USD, rising as capacity is added.

REFRESHER- The UAE is zeroing in on maintaining zero reliance on the strait — peace agreement or not. Foreign Trade Minister Thani Al Zeyoudi said the UAE is working on a new harbor to sit alongside the Eastern ports of Dibba, Fujairah, and Khor Fakkan, along with new pipelines and wider rail and road networks to eliminate its dependence on the strait.

The move helps create redundancy and “cuts exposure in stress-test scenarios,” former head of supply chain and transport industries at the World Economic Forum Wolfgang Lehmacher tells EnterpriseAM.

Yes, but that doesn’t erase the risk, Lehmacher says. His view is that new Gulf ports — Fujairah included — need to be judged as resilience assets, not just by throughput numbers: a route or a port can itself become a target or get constrained, so a bypass only counts if shippers and insurers actually trust it under stress. His practical test comes down to three questions: can high-value cargo move through east-coast gateways at a reasonable cost when Hormuz isn’t safe; do customs and data systems allow fast rerouting without getting stuck in red tape; and are security arrangements solid enough for a risk committee to sign off?

The war exposed the vulnerability

Daily traffic through the strait struggled to rise above 40 vessels since it briefly reopened following the interim ceasefire agreement — down from nearly 135 vessels per day before the war — and has fallen back to a trickle after renewed attacks on shipping over the past week. Jebel Ali and Fujairah were also affected early in the war when falling debris from intercepted missiles caused fire at the ports.

The financial hit: Moody’s expects the conflict to push DP World’s earnings down to some USD 5.9 bn this year, from USD 6.6 bn last year. Activity at Jebel Ali — the region’s largest container hub — plunged by 90-95% after the strait was closed, sources told the news outlet. IMF PortWatch data indicate that the port calls have declined sharply since the start of the conflict. Shipments have since been diverted through Fujairah and Sharjah’s Khor Fakkan port, leaving both east-coast facilities heavily congested.

The scale is what makes this a shift: Jebel Ali handled 15.6 mn TEUs last year and sits at the center of the emirate’s role as a logistics and re-export hub, particularly for trade between China and Africa. It is also surrounded by a sprawling freezone, warehouses, and heavy industrial facilities developed over decades.

That means Fujairah is a hedge, not a replacement: DP World sources said there were no plans to downsize Jebel Ali, whose broader logistics and industrial ecosystem cannot simply be reproduced on the east coast. Still, Vespucci Maritime CEO Lars Jensesn expects the disruption’s impact on the port to be “significant and permanent,” the news outlet reports.

REMEMBER- Fujairah already serves as the UAE’s principal energy bypass around Hormuz. Abu Dhabi exports crude through the emirate using its cross-country pipeline, while Adnoc relies on Fujairah for ship-to-ship transfers to bypass the strait.

Plan B is the new Plan A

Our take: At the beginning of the war, we asked whether Gulf ports outrun geography. Our answer was no — we argued that capacity alone could not solve a geopolitical access problem. Instead, we expected capacity built outside the chokepoints and stitched to Gulf markets by land: cargo shifting through Khor Fakkan, Fujairah, Sohar, and Jeddah, then moving on by road. That's what happened — though the workarounds have their own limits, with transit times and costs climbing and none of the alternative ports built to Jebel Ali's scale. DP World is now trying to turn that improvised rerouting into permanent infrastructure.

What to look for: DP World securing regular calls from major shipping lines and building the supporting network around the port; the project’s planned TEU capacity and whether it can narrow the east coast’s scale gap; and carrier behavior after Hormuz eventually stabilizes.

Al Rasheed expands into oilfield logistics with Taif acquisition

Saudi Arabia’s Al Rasheed is buying into its own supply chain. Industrial silica sand miner Mohammed Hadi Al Rasheed & Partners signed an agreement to acquire a 50% stake in Taif Shipping for SAR 92.5 mn, according to a Tadawul filing.

Why this matters: It’s a vertical integration play. Al Rasheed mines and processes the silica, and Taif ships and blends it for oilfield customers. Owning half the logistics chain gives Al Rasheed direct access to downstream marketing channels for its products.

What’s next? The acquisition, once cleared by the regulator, will be funded through Al Rasheed’s own resources and available financing facilities.

About Taif: Established in 2018 and headquartered in Al Khobar, Taif Shipping provides oilfield services including the transportation and blending of silica sand and chemicals used in conventional and unconventional oil and gas extraction.

Al Rasheed’s been on a tear: The Saudi firm secured a five-year contract last year worth more than SAR 1.1 bn to supply National Petroleum Technology Co. with high-quality silica sand for unconventional gas extraction at Saudi Arabia’s Jafurah field. Al Rasheed is targeting silica sand production capacity of around 4.5 mn tons by 2026, up from roughly 1.4 mn tons previously, alongside a new high-quality silica powder production line, according to its 2025 annual report (pdf).

Egypt’s Karnak Garment to build garment factory in Sadat City’s CPC Industrial Complex

Egyptian firm Karnak Garments is building a USD 15 mn garment factory in Sadat City’s CPC Industrial Complex, expected to start operations in May 2027, according to a statement. The facility will use at least 50% local materials to produce garments exclusively for export to the US and the European Union.

Why it matters: Private freezones — including the one housing this facility — are a powerful incentive for exporters, as they bring the customs border directly to the factory gate. This removes port delays and slashes shipping costs. The project also supports the country’s goal to reach USD 12 bn in annual textile and garment exports by 2031, Egyptian Cotton Association Chairman Wael Olama previously told us. Textile companies — including Turkish and Chinese firms — are increasingly moving to Egypt to avoid rising costs and supply chain delays in Asia and Turkey.

Why is Iran’s oil struggling to sell?

The US has closed Iran’s brief route back into the oil market. Washington revoked the waiver that allowed Tehran to sell crude globally and resumed strikes on Iranian targets after another round of attacks on commercial shipping in Hormuz, pulling apart both sides of the interim agreement that had paired freer passage through the waterway with temporary sanctions relief, Bloomberg reports.

IN CONTEXT- Iran again declared Hormuz closed over the weekend as the US carried out another wave of strikes. Just six vessels crossed the strait on Sunday, the lowest number in five weeks.

The immediate [oil] problem is already at sea: Around 63 mn barrels of Iranian crude are currently aboard tankers in the Arabian Gulf and across Asian waters. Many are either showing no clear destination or signaling that they remain available on orders — which means Iran managed to move the barrels out before finding buyers for them.

The waiver worked as a mere release valve: Around 30 mn barrels of Iranian oil were loaded between 15 June and 6 July, equivalent to around 1.3 mn bbl / d, and Kpler tracked some 34.5 mn barrels crossing Hormuz aboard 21 tankers between mid-June and 10 July. That followed months in which sanctions, blocked ports, and the disruption around Hormuz had pushed Iranian crude into floating storage. Once the US temporarily eased the restrictions, previously stranded cargoes could be financed, marketed, and delivered more easily — crude and condensate held in Southeast Asian waters fell by more than half to 24.4 mn barrels at the end of June, from 49 mn barrels one month earlier, while Far Eastern volumes dropped to 5.2 mn barrels from 9.9 mn.

Enter the rivals: Iran’s core buyers were already pulling back. China’s independent refiners imported 3.6 mn tons of Iranian crude in June, down 43% from 6.4 mn tons in May. China’s Shandong-based independent refiners went shopping elsewhere instead, buying between 16-20.5 mn barrels from Iraq, Qatar, and the UAE in recent weeks — their largest purchase of non-sanctioned Gulf oil since the conflict began. Privately owned Shenghong Petrochemical separately bought around 12 mn barrels from Iraq, Saudi Arabia, and the UAE.

Iranian crude was carrying more risk without offering a better price. Rival Gulf cargoes were offered at markdowns of around USD 5-8 / bbl to Brent for August and September delivery, compared with USD 2-3 / bbl for Iranian light. Iran tried to use the temporary window to reach beyond its traditional Chinese customer base, with cargoes marketed to refiners in Japan, Taiwan, South Korea, and India, but interest never turned into visible purchases outside China, and Indian buyers were only willing to move if the US extended the waiver beyond August.

Calendar

AUGUST

30 August-1 September (Sunday-Tuesday): Air Cargo Middle East, Riyadh, Saudi Arabia.

30 August-1 September (Sunday-Tuesday): Saudi Warehouse and Logistics Expo, Riyadh, Saudi Arabia.

SEPTEMBER

16-17 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

22-23 September (Tuesday-Wednesday): Breakbulk Americas, Houston, US.

22-24 September (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

28-30 September (Monday-Wednesday): Transport Logistics Middle East, Riyadh, Saudi Arabia.

OCTOBER

12-14 October (Monday-Wednesday): The Airport Show, Dubai, UAE.

20-22 October (Tuesday-Thursday): TOC Americas, Cartagena, Colombia.

21-22 October (Wednesday-Thursday): Global Ports Forum, Singapore.

26-29 (Monday-Thursday): Air Cargo Forum, Miami, US.

27-29 October (Tuesday-Thursday): Routes World, Riyadh, Saudi Arabia.

NOVEMBER

2-5 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

10-11 November (Tuesday-Wednesday): TOC Asia, Singapore.

10-12 November (Tuesday-Thursday): Intermodal Europe, Rotterdam, Netherlands.

11-13 November (Wednesday-Friday): logitrans, Istanbul, Türkiye.

18-19 November (Wednesday-Thursday): Breakbulk Asia, Singapore.

FEBRUARY 2027

10-12 February (Wednesday-Friday): Routes Americas, San Juan, Puerto Rico.

MARCH 2027

16-18 March (Tuesday-Thursday): CMA Shipping, Houston, US.

16-18 March (Tuesday-Thursday): Routes Asia, New Delhi, India.

APRIL 2027

20-22 April (Tuesday-Thursday): Routes Europe, Antalya, Turkey.

26-29 April (Monday-Thursday): Transport logistic and air cargo Europe, Munich, Germany.

26-29 April (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

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