United Arab Emirates

Disruptions

TIACA: Gulf conflict cuts air cargo capacity, doubles fuel prices

TIACA warns that the Gulf conflict severely disrupted air cargo in early 2026, eliminating capacity, closing trade lanes, and doubling fuel prices. Demand fell in March 2026 but rebounded to 4–6% monthly growth by mid-July. Vietnam has overtaken China in US laptop exports, signaling accelerated 'China plus one' manufacturing shifts. DHL launched a new Vietnam–US freighter service on 9 July 2026, while Cathay Cargo relocated Mumbai operations on 13 July. The TIACA Air Cargo Forum will convene 26–29 October 2026 in Miami Beach to address capacity planning, digital solutions, and geopolitical risk.

2026-07-19

Disruptions

DP World to build Fujairah port in 18 months amid Hormuz risks

DP World is developing a new multipurpose port and container terminal in Fujairah, UAE, aiming for completion within 18 months. The project responds to a 90–95% cargo drop at Jebel Ali Port after the Strait of Hormuz closure and represents a strategic hedge against geopolitical chokepoint risk. Initial investment is set at hundreds of millions of dollars, with the UAE government backing east-coast infrastructure to bolster trade resilience. The expansion complements — not replaces — Jebel Ali and aligns with Gulftainer’s $2 billion Khor Fakkan upgrade.

2026-07-15

Supply Chain

Hormuz tensions drive 42% reroute rate, surcharges rise

Escalating tensions in the Strait of Hormuz have forced 42% of container vessels to reroute, pushing Asia–Europe transit times to 32 days and schedule reliability down to 58%. Carriers including CMA CGM and Hapag-Lloyd imposed $350/TEU security surcharges effective 29 June 2026. New EU customs rules require full declarations for goods over €150, and IATA’s e-AWB mandate takes effect 1 October 2026. DSV and UPS are investing $480 million in Middle East transshipment hubs, while DHL launched a Shanghai–Frankfurt air service and raised 2026 air logistics growth guidance to 7.2%.

2026-07-13

Latin America Supply Chain

Fertilizer prices rise 30% amid Strait of Hormuz disruptions

Fertilizer prices are projected to rise more than 30% in 2026 amid Strait of Hormuz disruptions, according to Oxford Economics. Half the world’s traded sulfur passes through the strait — a key input for phosphate fertilizers. Procurement lags mean exposure extends 12–18 months, hitting small growers hardest when prices jump from $350–$400 to $600–$900/ton. Visibility into supplier commitments and regional inventories is now critical. The International Fertilizer Association has launched its first standardized Innovation Benchmark to track progress in nutrient efficiency and climate resilience.

2026-07-10

Disruptions

Southern African citrus exports drop 24% amid Red Sea disruption

Southern African trade growth is being stifled by supply chain bottlenecks stemming from Persian Gulf conflict, with South Africa’s citrus exports down 24% year-on-year — from 15.2 million to 11.5 million cartons. While total citrus exports rose 2.1% to 62.1 million cartons, regional shifts accelerated: Europe took 24.3 million (+18.6%), the UK 6.2 million (+12.7%), and Asia 2.9 million (+28.2%). Port congestion worsened, with Cape Town and Durban vessel waits exceeding 48 hours. May 2026 container throughput hit 17.3 million TEU — up 6.2% month-on-month — revealing demand resilience amid infrastructure strain.

2026-07-10

Inventory & Fulfillment

UAE Official Inspects Al-Arish Logistics Hub for Gaza Aid

UAE Minister of State for Foreign Affairs Dr. Sultan Al Mazrouei inspected the UAE Logistics Center in Al-Arish, Egypt, on May 15, 2024, to monitor Gaza aid preparations. The facility — launched in March 2024 — handles up to 300 metric tons daily across 12,000 sq m of warehouse space and has dispatched over 1,800 tons of aid since activation. It operates under a UAE-Egypt Joint Logistics Task Force and features UAE-funded solar power, satellite comms, and biometric security installed by April 2024. Coordination includes WFP, ICRC, and Egyptian Red Crescent.

2026-07-10

Latin America Supply Chain

Ormuz Crisis Halts $125B in Cargo, Asia Builds Supply Chain Resilience

The Strait of Hormuz crisis has stranded $125 billion in cargo, exposing Asia’s acute dependence on Gulf energy flows. Though a U.S.–Iran ceasefire enabled partial resumption of shipping in May 2026, mine clearance and port decongestion will take weeks to months. In response, Japan launched a $10 billion Asia Energy Resilience Partnership in April 2026; Singapore and New Zealand signed a binding essential-goods agreement in May; and ASEAN advanced its long-delayed fuel-sharing mechanism. Experts including Bernard Aw (Coface) and Jakir Ahmed (IbisWorld) warn that 'just-in-time' models are obsolete amid recurring geopolitical shocks. Regional efforts now prioritize diversified sourcing, expanded strategic reserves, and infrastructure upgrades—making supply chain resilience a core competitive metric.

2026-07-09

Digital Platforms

Blue Yonder CSO: Dubai chocolate trend lifts pistachio prices 35% in year

Blue Yonder Chief Sustainability Officer Saskia van Gendt warns that the Dubai chocolate social media trend triggered a 35% pistachio price surge—from $7.65 to $10.30 per pound—in one year, exposing agricultural supply chain fragility. Iran’s pistachio exports to the UAE rose 40% in six months to March 2025. Climate volatility, including a Super El Niño and Middle East conflict, compounds fertiliser shortages affecting wheat, rice, and corn. Blue Yonder’s 2026 Supply Chain Compass Report finds 51% of surveyed firms deployed unified data platforms, enabling minute- to hour-scale response times—critical as Panama Canal-level disruptions recur and West African cocoa faces heat and drought.

2026-07-05

Southeast Asia Supply Chain

UAE, India launch $11.5B aluminium supply chain in Odisha

The UAE and India have launched a $11.5 billion integrated aluminium supply chain in Odisha, featuring a 4-million-tonne alumina refinery, 2-million-tonne smelter, and 1-million-tonne industrial park. Backed by Adani Enterprises and International Holding Company, the project includes 4,000 MW of captive power and 400 MW of green energy. Aligned with the 2022 India-UAE CEPA and the IMEC corridor, it targets full operation by 2030. The initiative addresses energy intensity, cybersecurity risks, and geopolitical supply chain vulnerabilities while supporting decarbonisation in transport, renewables, and aerospace.

2026-07-04

Procurement

UAE-Panama trade surges 49.7% to $186M amid CEPA expansion

UAE–Panama non-oil trade surged 49.7% to $186 million in 2025, driven by intensified diplomatic engagement under the UAE’s Comprehensive Economic Partnership Agreement (CEPA) programme. During a June 2026 visit, UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi met with Panama’s top officials—including Foreign Minister Javier Martinez-Acha and Panama Canal Minister José Ramon Icaza—to advance cooperation in logistics, infrastructure, and supply chain resilience. Delegates toured the Panama Canal and Panama Pacifico Special Economic Area, while a business roundtable fostered private-sector collaboration. CEPA, launched in 2021, continues expanding UAE trade ties across Latin America, Asia, and Africa.

2026-06-30

Last Mile

UAE launches CPTPP accession talks amid 12-nation expansion push

The UAE has begun preparatory talks to join the 12-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), following confirmation in November 2025 that it met the bloc’s Auckland Principles. Alongside Indonesia and the Philippines, the UAE entered discussions on June 26, 2026, under a process requiring full consensus for accession. The move aligns with UAE trade strategy and supports deeper integration with Asia-Pacific logistics markets. Parallel efforts include formalising Costa Rica’s accession—substantially concluded in May 2026—and accelerating Uruguay’s application.

2026-06-29

Geopolitics

Wio Bank shifts SCF focus to ecosystem resilience amid Strait of Hormuz disruption

Supply chain finance is shifting from working capital optimization to ecosystem-wide resilience, driven by geopolitical disruptions — notably in the Strait of Hormuz. Wio Bank’s Prateek Vahie argues SCF must now stabilize supplier networks amid volatility. The global trade finance gap stands at US$2.5 trillion (Asian Development Bank), with payment terms stretching to 90 days. Buyer-led SCF programs help distribute liquidity to SMEs, reduce production delays, and support sustainability goals. Digital procurement tools and overland corridor expansion are accelerating across the Middle East.

2026-06-25