How the war in Iran is reshaping logistics

The war in Iran is reshaping logistics; attacks, blockades, threats, sanctions and border issues are just a few of the daily challenges facing global supply chains. In response to these operational challenges, TIR is playing a key role in maintaining the movement of freight between the Gulf States and Saudi Arabia. TIR is leveraging fast track customs procedures where hauliers can move through multiple borders securely and with minimum delays.

Road freight under TIR from the UK to the Middle East tends to be associated with the UK’s most written about haulier, Astrans or Asian Transport and the pioneering days of the 1970’s and 80’s. Difficult to believe now but this companies 31 day trip to Kabul, Afghanistan was in 1964, which basically signalled the start of the boom years for transport to the gulf states, Iran, Saudi Arabia and occasionally special trips to Islamabad and Karachi. The catalyst for the overland opportunity was the growing oil industry in the Gulf, initially led by UK and American companies, an excellent trading relationship with pre-revolution Iran, and a slow maritime transport alternative which was subject to port delays and cargo pilfering.

The current conflict in Iran is once again requiring road transport to provide the “land bridge” connectivity between all the Gulf states and Saudi Arabia and Europe. All the major shipping companies including MSC, Maersk, CMA-CGM and Hapag Lloyd have opened trucking routes from ports on the Red Sea and Gulf of Oman-including Yanbu and King Abdullah in Saudi Arabia and Fujairah in the UAE, to ports such as Dammam in Saudi, Basra in Iraq and Dubai’s Jebel Ali, the regions largest port. Despite up to 1000 trucks a day moving freight on major routes in the region, trucks can only replace a fraction of the capacity provided by large container vessels that previously serviced the Gulf through the Strait of Hormuz which has effectively been closed since February 28th.The TIR system immediately opened doors to efficient and secure trade via Iraq,” said IRU Secretary General Umberto de Pretto. “Iraq’s ambitious Development Road Project needs such a harmonised border and customs system.” “With the ongoing war in the region, we are also seeing the resilience provided by TIR. As maritime and air routes are disrupted, companies and countries rely on trade by road under TIR to get goods to communities and businesses. Iraq, with TIR, is fast becoming a vital land bridge between the GCC, Türkiye and Europe,” he added.Freight forwarders Rhenus has reopened its overland service via Jordan, connecting Europe to Saudi Arabia, Kuwait, the UAE, Qatar, Bahrain and Oman, reporting that it has moved nearly 200,000 kgs of freight in less than a month, citing transit times circa 20 days from Europe, which is nothing compared to Poland’s Milton Group who provide a premium door to door express service from Poland to Dubai in 10 days on average for time sensitive, high priority cargo.