Expedition and freight forwarding solutions

French shipping and logistics giant CMA CGM is developing multimodal solutions (sea–rail–road) to maintain supply chain resilience amid rising risks in the Strait of Hormuz.

The company is establishing alternative corridors via key regional entry points in the UAE — Khor Fakkan and Fujairah — as well as Sohar in Oman. From there, cargo is routed to major Gulf hubs such as Khalifa, Jebel Ali, and Sharjah using a mix of sea and trucking operations.

In addition, CMA CGM is leveraging a land corridor through Saudi Arabia, including Jeddah on the Red Sea, as an alternative to traditional routes. Ports in Oman are also being used to create a third logistics flow, with onward distribution across the region.

This setup allows the company to maintain connectivity between Asia and the Mediterranean while reducing direct reliance on the Strait of Hormuz.

From a market perspective, this reflects a broader shift: operators are moving from traditional ocean freight models toward hybrid, flexible logistics solutions — reducing geopolitical exposure and strengthening supply chain resilience.

Roughly 400,000 tons of Indian basmati rice are currently stuck in ports or in transit as shipping routes through the Middle East face disruptions and freight rates surge.

Industry sources report that container shipping costs have more than doubled following the recent strikes by the United States and Israel on Iran. The instability is already affecting one of India’s key agricultural export sectors.

India is the world’s largest exporter of premium basmati rice, with more than half of shipments traditionally heading to Gulf countries such as Saudi Arabia, Iran, and the UAE.

According to exporters, about 200,000 tons are already at sea, while another 200,000 tons remain stranded in Indian ports. Many exporters have temporarily suspended new orders to the region, prioritizing the fulfillment of existing contracts and considering the possibility of declaring force majeure.

Rising war-risk insurance premiums and the withdrawal of coverage in areas near the Strait of Hormuz have pushed both tanker and container operators to avoid the route, driving up costs and causing delays.

Ironically, India is facing this disruption amid a record harvest. With shipments stalled and demand falling suddenly, basmati prices have already dropped by around 6%.

For the shipping industry, this is a clear example of the secondary impact of geopolitical conflict: disruption of food supply chains, congestion in export ports, and rising storage costs.

The All India Rice Exporters’ Association represents India’s rice exporting companies and advocates for the sector in both domestic and international markets.

Japanese shipping group NYK Line has acquired an equity stake in startup Oceanic Constellations through a third-party share allocation, reinforcing its commitment to next-generation maritime technologies.

The investment is aimed at scaling the production of unmanned surface vessels (USVs) and accelerating the transition toward autonomous maritime infrastructure. Oceanic Constellations develops technologies for ocean monitoring, disaster prevention, and maritime communications, supported by advanced environmental simulation systems that replicate real-world operating conditions for autonomous vessels.

These solutions are also used to validate maritime recovery systems for reusable rockets under a project supported by JAXA through its Space Strategy Fund, in which NYK participates.

Operational cooperation between the companies is already underway. In December 2025, they signed a service agreement to develop simulation software and validate scenarios for space-related programs. Earlier, in October 2025, Keihin Dock, part of the NYK Group, entered into a joint testing agreement that includes USV assembly.

NYK emphasizes that the equity participation strengthens its long-term strategic position at the intersection of maritime operations and advanced technologies.

Founded in 1885, NYK Line is one of the world’s leading shipping groups, operating across liner shipping, bulk carriers, tankers, and logistics. The company is publicly listed and owned by a broad base of institutional and private investors.