Expedition and freight forwarding solutions

The Strait of Hormuz — one of the key arteries of global logistics — is partially resuming operations following a period of escalation in the region. As a result of negotiations mediated by Pakistan, the parties agreed to a two-week ceasefire.

Under the agreement, Iran confirmed its readiness to ensure safe passage for vessels through the strait. However, navigation will be conducted in coordination with Iran’s armed forces, and the strait remains under Iranian control. The reopening is conditional and temporary, with its continuation directly dependent on compliance with the ceasefire, leaving the situation still unstable.

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.