Cargo delays, rising costs: How UAE is managing shipping disruption

Dubai: Shipping disruptions across the region are pushing up costs, delaying cargo and forcing a major rerouting of trade flows — prompting authorities in the UAE to step in with emergency logistics measures to keep goods moving.

Industry officials said freight costs have surged sharply — in some cases rising four to six times — as shipping lines divert away from traditional routes. This has triggered congestion at alternative ports and increased reliance on road transport.

According to maritime and IMO-linked data, up to ~2,000 ships were affected at peak and about 20,000 sailors are stranded at sea as the US-Israel- Iran war enters its 67th day.

Rashid Darwish Almuhairi, Senior Consultant at Dubai Customs, said the challenges span global, regional and local levels, with rising fuel costs, insurance premiums and operational risks adding to pressure on the sector.

Shipping line disruptions have also led to capacity mismatches, as vessels shift to ports that are not equipped to handle the volumes handled by major hubs like Jebel Ali.

“Because of this disruption, the shipping lines are following other ports… the mismatch of capacity is the biggest challenge,” Almuhairi said.

Cargo diversions, congestion, tracking gaps

With cargo increasingly diverted to ports across the region — including Fujairah, Khor Fakkan and Sohar — the cargo clearance is facing bottlenecks.

Ports are experiencing congestion and delays, while traders are grappling with limited visibility on shipments due to multiple stakeholders are involved in handling of cargo across different locations.

“There is a visibility gap, and traders sometimes are not able to track where the container is at the moment,” Almuhairi added.

The shift has also increased cross-border trucking, leading to higher land transport costs and a shortage of available trucks. Regulatory hurdles across borders and the need to coordinate among multiple customs authorities have added further complexity.

Dubai Customs steps in with emergency measures

In response, Dubai Customs has rolled out a series of measures to maintain the flow of goods.

These measures include:

• Opening a green corridor between the UAE and Oman for cargo movement

• Extending transit timelines from 30 days to 90 days

• Allowing cargo diversion through multiple ports with revised clearance processes

• Setting up a one-stop shop for traders to resolve issues with stakeholders

• Conducting over 25 workshops with more than 300 industry participants

Dubai Customs has also coordinated with customs bodies in Oman and other GCC countries to streamline cross-border movement.

“We engaged Sharjah customs, Oman customs… and facilitated the flow of the cargo,” Almuhairi said.

As per the government policy, initially focus was to ensure smooth import flow of the essential commodities such as food and medicine, especially during the peak of disruption.

Almuhairi added, “The prioritisation of the essential goods is to ensure the availability of the required stock in the market.”

He added that these steps helped prevent shortages and ensured shelves remained stocked despite delays.

Industry seeks clarity on processes

Shipping agents say while measures have helped, operational challenges remain — particularly around documentation, container movement and inter-port coordination.

The Dubai Shipping Agents Association said members are seeking clearer procedures for transit shipments, bonded cargo movement and customs documentation.

“Members are looking for more clarity and flexibility around bill of entry amendments and cancellations,” Ghaya AlMansoori, general manager of the association.

Limited tracking visibility, container-handling delays, and inconsistent procedures across ports have also been flagged as key concerns.

Costs rise as delays persist

The disruption is also having a direct financial impact on the sector.

Shipping agents highlighted additional costs, including storage, demurrage and storage charges, particularly when delays are outside their control.

At the same time, congestion at smaller regional ports — which lack the capacity of Jebel Ali — has led to longer waiting times for vessels.

“Just to be allowed to enter into a terminal… will take approximately 10 days,” Almuhairi said, referring to delays caused by congestion.

Air freight and road transport step in

With disruptions affecting sea and air routes, alternative logistics solutions have been deployed.

Cargo has been rerouted via neighbouring countries, with road transport linking to airports in Oman to maintain air freight connectivity during flight disruptions.

“The other option was to move it by road to… an airport in Oman, where it will leave from there,” Almuhairi said.

Systems remain stable

Despite the operational challenges, Dubai Customs said its core systems remain unaffected.

Clearance processes continue to operate digitally, with the majority of declarations processed within seconds.

“98 per cent are auto-approved within seven seconds,” Almuhairi said.

He added that once disruptions ease, operations are expected to normalise quickly, with the main challenge being the backlog at ports and among shipping operators.

Shipping agents say the sector is gradually adapting to the new reality, even as uncertainty persists.

While challenges remain, both authorities and industry players say ongoing coordination and policy adjustments will be key to ensuring supply chain continuity in the months ahead.