{"id":92582,"date":"2026-03-05T00:00:00","date_gmt":"2026-03-05T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=92582"},"modified":"2026-03-05T11:50:22","modified_gmt":"2026-03-05T11:50:22","slug":"today-can-port-capacity-offset-geopolitical-risk","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2026\/03\/05\/today-can-port-capacity-offset-geopolitical-risk\/","title":{"rendered":"TODAY: Can port capacity offset geopolitical risk?"},"content":{"rendered":"

Good morning, friends. <\/strong>We\u2019re entering day six of the war that is spilling beyond the battlefield \u2014 with trade and supply chains under heightened risk. Some carriers are already moving beyond surcharges: MSC has issued an \u2018End of Voyage\u2019 for Gulf-bound cargo, while Cosco has suspended Middle East bookings as the conflict escalates.<\/p>\n

Gulf port hubs are also feeling the squeeze (risk).<\/strong> After years of smooth operations \u2014 high-capacity terminals, industrial freezones, and tightly knit operations \u2014 one variable no planner can control is now in play: access.<\/strong><\/p>\n

Meanwhile, strategic pivots are underway:<\/strong> Saudi Arabia is rerouting Asian energy shipments to Yanbu on the Red Sea \u2014 and we dive into what this means for Hormuz in the news well, below.<\/p>\n

Watch this space<\/p>\n

<\/a> TRANSPORT \u2014 With the Strait of Hormuz effectively shut, cargo owners are testing a <\/strong>workaround that swaps sea lanes for highways \u2014 and suddenly Egypt is in the middle.<\/strong> European shippers are increasingly exploring a land-sea transit route through Egypt after the chokepoint\u2019s closure forced logistics planners to hunt for alternatives.<\/p>\n

The proposed route turns <\/strong>Egypt <\/strong>into a temporary logistics bridge between Europe and the <\/strong>GCC. <\/strong>Goods arriving at Mediterranean ports such as Alexandria and Damietta are moved overland to Safaga on the Red Sea. From there, ferries carry the cargo onward to Saudi Arabia and other Gulf markets, Managing Director for Commercial Affairs at Egytrans-Nosco Hamad Nadeem told Asharq Business<\/a>.<\/p>\n

Egypt\u2019s port operations are holding steady even as shipping routes shift:<\/strong> Alexandria and Damietta remain largely insulated and could help absorb cargo flows and service vessels rerouting around the Cape of Good Hope, a senior government source at the port previously told us. East Port Said has not been affected by the current tensions because it does not receive oil tankers, the source said, adding that the port is continuing to post strong performance in transit trade despite shipping agencies diverting away from the Suez Canal.<\/p>\n

Container throughput illustrates the scale: <\/strong>East Port Said handled some 5.6 mn TEUs by the end of 2025 \u2014 up from 1.8 mn TEUs four years earlier, the source said.<\/p>\n

\n

<\/a> MARITIME \u2013\u2013 Traffic through the Strait of Hormuz has dropped by more than 95% since the outbreak of the conflict<\/strong>, Bloomberg<\/a> reports, with the waterway now rife with signal jamming and disabled transponders. Over 140 ships are sitting idle<\/a> in the strait. One tanker did make it through to the UAE's Jebel Dhanna port yesterday, per Reuters<\/a> \u2014 it smells more like a one-off than a signal that we\u2019re returning to normal. A vessel off Fujairah was struck by a projectile of unknown origin shortly after, per UKMTO<\/a>.<\/p>\n

The blockade is already backing up the system:<\/strong> Fujairah bunker suppliers have declared force majeure, Argus<\/a> reports, after drone debris hit the Fujairah Oil Industry Zone earlier this week<\/a> \u2014 jeopardizing the UAE's only bypass around Hormuz.<\/p>\n

Why it matters:<\/strong> The transit serves as a real-time stress test for maritime ins. premiums and freight rates in the Gulf. For logistics managers, the successful passage of high-value cargo through the Strait without disruption could point to a way through the blockade, albeit a high-risk one.<\/p>\n

Market watch<\/p>\n

Oil prices surged 3% this morning as the regional war fuels fear of prolonged supply chain disruptions<\/strong>, <\/strong>Reuters<\/a> reports. Brent crude futures gained USD 2.65 to trade at USD 83.99 \/ bbl at 05.20 GMT, while US West Texas Intermediate (WTI) increased USD 2.76 to USD 77.42 \/ bbl.<\/p>\n

\n

The Baltic Index snaps losing streak: <\/strong>The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 fell 0.4%<\/a> to 2,233 points on Wednesday.<\/p>\n

Data point<\/p>\n

<\/a> Egypt\u2019s non-oil private sector continued to contract in February<\/strong>, with the headline S&P Global Purchasing Managers\u2019 Index (PMI) falling to 48.9 from 49.8 in January, according to an S&P report (pdf)<\/a>. The dip marks the end of a three-month expansionary streak \u2014 the longest growth streak since late 2020 \u2014 as softening demand and accelerating cost pressures forced firms to scale back operations. Despite the slip below the 50.0 neutral threshold, the reading remained above the survey\u2019s long-run average of 48.3.<\/p>\n

Both output and new orders saw declines in February. <\/strong>New orders contracted at their fastest rate in five months, with a notable drop in sales across the manufacturing, services, and wholesale and retail sectors. Construction was the lone bright spot, reporting an improvement in order volumes amid the broader slowdown.<\/p>\n

The big culprit?<\/strong> Input costs. Average price pressures went up substantially, hitting their highest level since May 2025. Businesses reported being squeezed by a surge in global prices for oil and metals, which drove up import expenses. While costs are soaring, most firms are reluctant to pass those hikes onto customers, choosing instead to eat the difference and let their margins take the hit, according to David Owen, senior economist at S&P Global Market Intelligence.<\/p>\n

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What we\u2019re tracking this morning regionally and around the world<\/p>\n","protected":false},"author":1,"featured_media":92632,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[980],"tags":[49,17,123,32,129,16],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-92582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today-2","tag-egypt","tag-enterprise-logistics","tag-shipping-maritime","tag-trade","tag-uae","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"d4f0ffb8-62d9-4e8f-8093-4c0573c81de7","order":"2","is_powered_by":false,"story_type":"4","photo_url":"","photo_position":"above","homepage_title":"","full_issue_title":"TODAY: Can port capacity offset geopolitical risk?","related_issue":[92580],"teaser":"What we\u2019re tracking this morning regionally and around the world","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"\nTODAY: Can port capacity offset geopolitical risk? - 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