DP World, UAE Build 2 Fujairah Terminals as Hormuz Traffic Falls to Double Digits
Updated
Updated · The New York Times · Jul 22
DP World, UAE Build 2 Fujairah Terminals as Hormuz Traffic Falls to Double Digits
3 articles · Updated · The New York Times · Jul 22
Summary
Two new Fujairah shipping terminals will be developed under a DP World-UAE deal aimed at routing cargo around the Strait of Hormuz, where the Iran war has sharply disrupted vessel movements.
The project would lift DP World’s container capacity by about 13% and reduce reliance on Jebel Ali, the Middle East’s busiest Gulf port, where activity has slumped during the conflict.
More than 100 ships a day used to pass through Hormuz before the war, but crossings have recently dropped to double digits or lower as attacks and rival blockades unsettle the waterway.
The push to diversify routes comes as countries seek alternatives for moving millions of barrels of oil, even as those options face new pressure from the Iran-backed Houthis’ Red Sea blockade on Saudi Arabia.
With two major sea lanes now active war zones, is this the end of globalized supply chains?
As the UAE quits OPEC and bypasses Hormuz, who will now control global oil prices and supply routes?
Will the world's costly new trade routes make the 2026 energy crisis a permanent reality for consumers?
UAE’s “Zero Hormuz Dependency”: How the 2026 Strait of Hormuz Crisis Triggered a $2 Billion Pivot to Fujairah and Redefined Gulf Trade
Overview
The closure of the Strait of Hormuz in March 2026, triggered by the escalating US-Israel-Iran conflict, caused an immediate crisis for global shipping and Middle East economies. As this vital waterway is the main export route for top oil and LNG producers, its disruption exposed the region’s vulnerability and led to severe impacts on major Gulf ports like Jebel Ali and Khalifa. In response, the UAE launched a strategic pivot to Fujairah, aiming to eliminate dependency on the Strait by expanding eastern ports, developing new pipelines, and enhancing overland logistics, thus strengthening its resilience against future regional instability.