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Hormuz closure rewires global trade routes overnight
A year ago, Siemens Energy mapped a land route to Dammam as a backup. The Hormuz closure turned that map into the region's trade playbook overnight.
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The Strait of Hormuz closure has pushed years of contingency planning into real-time execution. Supply chains that once moved through the water are now locked onto the road networks of the Arabian Peninsula.
Siemens Energy is moving turbine components and power-generation equipment to Dammam via land after the sea route was shut, according to people familiar with the logistics. Retailer Spinneys is trucking food supplies across the desert to keep shelves stocked. DP World, the ports operator, is running its inland container depots at capacity, the people said.
A year ago, a conflict between the US and Iran forced these companies to sketch out alternative routes. Back then, the plans sat on shelves. They are now live. The shift locks a critical volume of regional trade onto a road infrastructure built for local commerce. The capacity test is the real uncertainty for logistics analysts.