The disruption, intensified by the Iran conflict and the continuing risk of attacks near Yemen’s coast, has pushed major carriers including MSC, CMA CGM, Maersk and Cosco to reroute vessels away from traditional Gulf and Suez-linked lanes, raising transport costs, extending delivery times and straining alternative ports across the region.

Saudi Arabia’s Red Sea port of Jeddah has emerged as a key regional transit hub, receiving cargo through the Suez Canal before shipments are transferred by truck across desert highways to destinations including Sharjah, Bahrain and Kuwait, where direct maritime access has been disrupted for nearly two months.

“The port of Jeddah is not at all sized to handle such import volumes and a port congestion situation is emerging,” Arthur Barillas de The, co-founder of freight forwarder Ovrsea, said.Data from Kpler Marine Traffic showed 11 container ships docked in Jeddah on Thursday, with nine additional vessels waiting and average unloading delays rising to 36 hours, compared with 17 hours a week earlier.

Shipping operators have also increasingly relied on ports outside the Strait of Hormuz, including Sohar in Oman and the UAE ports of Khorfakkan and Fujairah, which are connected inland through road freight networks. Jordan’s Aqaba port has become a staging point for cargo moving into Baghdad and Basra, while a Turkish land corridor is supplying northern Iraq.

The wider rerouting of Asia-Europe trade began before the current Iran war but accelerated after attacks by Iran-backed Houthi forces on commercial shipping in the Red Sea from late 2023, making passage through the Bab Al-Mandeb Strait and Suez Canal increasingly risky.Analysts say the diversion has now become structural.

Container ships are increasingly sailing around Africa’s eastern coastline, passing the Cape of Good Hope at the southern tip of South Africa before turning north toward Europe and the Mediterranean, replacing what was once the fastest maritime corridor between Asia and Europe.

“Today, 70% of the freight traffic that went through the Red Sea in 2023 is being rerouted via the Cape of Good Hope,” said Yves Guillo, a supply chain specialist at consultancy Efeso.Edouard Louis-Dreyfus, chairman of French shipping group Louis Dreyfus Armateurs, said the latest Gulf tensions had deepened an already entrenched shift.

“With the current situation in the Gulf, we have put several more coins in the machine, it’s not going to get better anytime soon,” he said.International Monetary Fund PortWatch data based on vessel GPS tracking showed commercial ship traffic around the Cape of Good Hope has more than tripled over the past three years, while traffic through the Bab Al-Mandeb Strait has fallen by more than half.

Between March 1 and April 24 this year, an average of 20 commercial vessels passed around the Cape each day, compared with six during the same period in 2023. By contrast, daily traffic through Bab Al-Mandeb fell from 18 transits to five over the same timeframe.

The detours have added roughly two weeks to average Asia-Europe shipping times and significantly raised operating costs, with ships requiring 30% to 50% more fuel and fleets needing 10% to 20% more vessels to maintain the same delivery frequency, Guillo said.The average cost of shipping a standard 40-foot container on major trade routes rose 14% in April from a year earlier, according to the Drewry freight index cited by Efeso.

The shift has created winners and losers across the region.African ports such as Morocco’s Tanger Med have benefited from higher traffic volumes. The port authority said it handled 11 million standard containers in 2025, an increase of 8.4% from the previous year.

Egypt, however, has suffered a sharp fall in Suez Canal toll revenues, a major source of state income. Commodities publication CyclOpe estimated the country lost $7 billion in canal revenue in 2024, a decline of more than 60% from 2023 levels.

Though seen initially as a reaction to ongoing trade tensions, experts say these new steps could eventually foster innovation, create more balanced global trade routes, and boost competitiveness among shipping and logistics firms.

Starting October 14, both nations began implementing additional port fees on vessels linked to each other’s economies. China stated that the special charges would apply to U.S.-owned, operated, built, or flagged vessels, while ships built in China would be exempted from the levies.

Similarly, the U.S. administration introduced fees on China-linked ships as part of a wider policy to bolster the American shipbuilding industry and reduce its dependence on foreign-built fleets.

Industry observers note that while the changes may create short-term adjustments for shipping companies, the broader outcome could lead to a more diversified and resilient maritime system.

By encouraging domestic shipbuilding and innovation in logistics, both the U.S. and China are investing in stronger, more self-reliant economies.

Analysts also suggest that the measures could open up opportunities for smaller economies and third-party logistics providers to expand their roles in global trade.

China’s new rules specify that the extra port fees will be collected at the first port of entry on a single voyage or over the first five voyages within a year. The annual billing cycle begins each April, ensuring predictable and manageable costs for shipping companies.

These transparent guidelines are expected to help companies plan logistics more efficiently while giving shipbuilders time to adjust to the evolving global standards.

In the United States, the administration under President Donald Trump announced its port fee initiative earlier this year as part of a long-term plan to strengthen U.S. maritime infrastructure.

The move follows findings from an earlier investigation during the Biden administration, which concluded that China’s policies in shipbuilding and logistics gave it an outsized advantage in global markets.

The new measures aim to restore balance, ensure fair competition, and support local innovation in U.S. ports and shipyards.

While the policy has been described by some as a “tit-for-tat” response, others see it as a necessary step toward a fairer and more sustainable global shipping environment.

By introducing fees that encourage local development, both nations are pushing for a new phase of global maritime evolution—one focused on technological upgrades, eco-friendly practices, and enhanced transparency.

Market analysts expect the initial impact on companies like China’s COSCO and other large carriers to be manageable. Jefferies analyst Omar Nokta noted that while 13% of crude tankers and 11% of container ships globally could be affected, the long-term gains in competitiveness and efficiency may outweigh the short-term challenges.

Industry leaders in both countries are responding by exploring new trade routes, modernizing fleets, and investing in digital tracking systems that can optimize port logistics and reduce fuel consumption.

These efforts align with global sustainability goals championed by organizations such as the International Maritime Organization (IMO), which seeks to cut greenhouse gas emissions from the shipping sector.

A Shanghai-based trade consultant emphasized that while initial adjustments may occur, trade will continue to thrive. “Companies will adapt, just as they have in the past.

This may even push the industry to become more innovative, with smarter logistics and greater regional cooperation,” he said.

Experts also believe that this renewed focus on maritime independence could lead to increased collaboration among emerging economies.

Nations in Southeast Asia, the Middle East, and Africa could see new opportunities to expand their ports and attract greater investments from international shipping firms looking for alternative trade hubs.

Ultimately, what began as a series of tariff adjustments may evolve into a transformative phase for global shipping.

The new U.S.-China port fee structures are prompting the world’s major economies to rethink how goods move across oceans—prioritizing sustainability, local growth, and innovation over dependence and volatility.

In the long term, this could result in a more balanced, technologically advanced, and eco-conscious maritime industry—one that strengthens global trade stability while ensuring that every port, from Los Angeles to Shanghai, benefits from a fairer and more dynamic shipping future.