What longer shipping routes mean for Gulf importers
Ziad Kanaan
Detours add days and costs to every container. Importers in Dubai explain how they are adjusting stock, contracts and prices.
When ships take longer routes between Asia, Europe and the Gulf, the extra days at sea show up far from the port: in shop prices, stock levels and cash flow.
Longer trips, more stock
A trading company in Deira told us it now orders six weeks ahead instead of four, which ties up more cash in goods sitting in warehouses.
Contracts are being rewritten
Importers are asking suppliers to share freight surcharges, and more contracts now name a price per container that can move with an agreed index.
Closer suppliers win
Some buyers are shifting orders to factories in the region, even at a higher unit price, because shorter and more predictable delivery is worth the difference.
What to do now
Review your three biggest supply routes, check how many days of stock you really need, and talk to your freight forwarder before the next busy season, not during it.