Middle East trade surge and increasing container traffic drives shipping giants to expand routes between the GCC and beyond.
The Middle East is experiencing a significant surge in trade, leading to a wave of new shipping services by some of the world’s leading container lines. The rapid growth in container traffic within the region has prompted companies to expand their operations to meet increasing demand.
Simon Heaney, Senior Manager of Container Research at Drewry, highlighted the dynamic shifts in the market, stating, “Trade has been growing very solidly since Q4 2022, following five straight negative quarterly performance beforehand. Growth in H2 2024 are likely to subside due to stronger comparison periods, but the trade has shown little sign of being derailed by the logistical challenges in the Middle East.”
Several leading container lines have launched new services to capitalize on the rising trade volumes in the Middle East. MSC has introduced a new started a standalone service, Clanga, connecting China with the Saudi Arabian port of Dammam. The line calls at Shanghai, Ningbo, Shekou, Singapore and Dammam. MSC also revamped its Falcon service to call at Tianjin, Busan, Qingdao, Shanghai, Ningbo, Xiamen, Nansha, Shekou, Singapore, Jebel Ali, Abu Dhabi, Hamad, and Umm Qasr.
Japan’s joint venture, Ocean Network Express (ONE), and the Taiwanese intra-Asia carrier, TS Lines, are set to launch the South China-Middle East Express (SMX) service on November 8. This new service will connect the southern Chinese ports of Shekou, Da Chan Bay, and Nansha with Jebel Ali and Hamad. For this route, TS Lines will deploy a 2,900 TEU vessel, while ONE plans to nominate a ship at a later date.
In addition, TS Lines is collaborating with X-Press Feeders and the South Korean intra-Asia operator, Sinokor Merchant Marine, to launch the Central China Middle East Express (CME) service on September 23. This service will connect ports in Qingdao, Shanghai, Ningbo, Shenzhen, Port Klang, Colombo, and Jebel Ali. Sinokor will provide two 8,000 TEU ships, X-Press Feeders will assign two 7,000 TEU vessels, and TS Lines will deploy a 7,000 TEU ship.
TS Lines is particularly optimistic about the trade prospects between East Asia and the Middle East, as demonstrated by its recent order for two new 4,300 TEU vessels from CSSC Huangpu Wenchong Shipbuilding.
Sinokor entered the East Asia-Middle East shipping lane in May by launching the SGX1 service in collaboration with China United Lines, Unifeeder, and Milaha (Qatar Navigation).
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