Hormuz shutdown slashes Jebel Ali traffic, dents DP World profit despite revenue rise
DP World’s flagship Jebel Ali port saw container volumes collapse after the Strait of Hormuz closure, trimming first-half profit even as overall revenue grew.
DP World endured a near-collapse of traffic at its Jebel Ali hub in the first half of the year after the Strait of Hormuz was shut, prompting a shift of cargo to overland routes through other UAE ports. Container throughput at Jebel Ali dropped 86% in Q2, falling to 374,000 TEUs from 2.7 million in Q1. Despite this, the operator’s global network generated a 13% year-on-year revenue increase to $12.7 billion, while net profit slipped 39%.
Rerouting via Fujairah and Khor Fakkan proved far more expensive, costing four to five times more once inland transport is added, but a company official believes 95% of displaced volume will revert to Jebel Ali once the strait reopens. To reduce future reliance on Hormuz, DP World is building two new terminals in Fujairah, adding about 2.5 million TEU of capacity. The firm has also deployed trucks and staff across the UAE to keep essential goods moving, though queues at alternative ports can reach 12 hours compared with a 27-minute turnaround at Jebel Ali.
Why it matters
The story shows how geopolitical tensions can disrupt global trade routes and affect major port operators' earnings.
How this story developed
- Jul 16 Former Trump Counterterrorism Chief Warns Any Iran Deal Will Require Concessions
- Aug 10 Supreme Leader Mojtaba Khamenei named six senior commanders to lead the armed forces, IRGC, its navy and the Basij.
- Aug 11 A cargo ship was struck in the Bab el‑Mandeb strait.
- Aug 11 Iran-backed Houthi rebels launched fresh missile and drone attacks on the government-held port of Mokha and other Yemeni areas, sparking concerns about a revived civil war and disruptions to Red Sea shipping.
- Aug 11 Iran appointed Mohsen Rezaei as secretary of the Supreme National Security Council.
- Aug 11 Iran added the lifting of sanctions and an end to hostilities as preconditions for reopening the strait.
- Aug 12 Houthi forces launched ballistic missiles at a commercial vessel in the Bab el-Mandeb Strait, resulting in deaths.
- Aug 12 Pakistan interior minister Mohsin Naqvi met Iranian foreign minister Abbas Araghchi in Tehran to discuss reopening the Strait of Hormuz.
- Aug 12 A US Navy helicopter disabled the Panama‑flagged cargo ship M/V Vela Nova attempting to sail toward an Iranian port.
- Aug 12 Iran’s top security official declared the Strait of Hormuz would stay closed unless the United States accepts Tehran’s conditions on frozen assets and regional conflicts.
- Aug 12 President Donald Trump posted that the United States fully controls the Strait of Hormuz and dismissed Iran’s ability to challenge the naval presence.
- Aug 12 Six senior commanders were appointed to top military posts.
- Aug 13 New reports confirmed a fire at the Jazan refinery but no casualties.
- Aug 13 The United States engaged a Panama‑flagged vessel in the Gulf of Oman.
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