Global ocean freight rates are expected to decline eventually, despite the sharp increase in shipping costs triggered by geopolitical tensions and disruptions to key maritime routes, according to Abdulla Al Hashimi, Global Chief Operating Officer, Parks & Economic Zones, DP World.
Speaking during a media interaction, Al Hashimi said the current surge in freight rates was unlikely to remain sustainable in the long term. He pointed to previous disruptions, including the Red Sea crisis, piracy incidents in 2012 and the COVID-19 pandemic, when freight rates increased sharply before eventually easing.
“Eventually, freight rates will have to come down,” he said, noting that the shipping industry had repeatedly demonstrated its ability to adjust to disruptions affecting critical maritime waterways.
Indian Ports Support Alternative Shipping Routes
Amid logistical disruptions caused by the US-Iran conflict, DP World has redirected several major shipping lines through India to maintain cargo movements along the India-UAE trade corridor.
Ships originally bound for Gulf destinations were diverted to DP World’s terminals at Mundra, Nhava Sheva and Kochi, where cargo was discharged before being moved through alternative feedering and inland transportation networks.
The arrangement connects Southeast Asia, India and Colombo with the UAE’s eastern ports of Khor Fakkan and Fujairah, providing alternative access to the UAE and helping cargo owners navigate maritime bottlenecks.
To strengthen overland cargo transportation from the UAE’s eastern coast to southern and central parts of the Emirates, DP World has acquired more than 700 trucks over the past eight months. The company has also coordinated the movement of over 800,000 containers through its overland logistics network.
India-UAE Trade Connectivity Gains Importance
Al Hashimi highlighted India’s growing importance as a strategic trade and investment partner for Dubai, stating that alternative shipping routes have provided Indian cargo owners with additional options to access regional and international markets.
DP World’s two terminals in Fujairah are expected to further strengthen the Jebel Ali logistics ecosystem and expand connectivity for Indian businesses seeking access to the UAE and wider regional markets.
Indian Investment in Jebel Ali Free Zone Rises
Despite geopolitical uncertainties, DP World’s flagship Jebel Ali Free Zone (JAFZA) attracted AED 1 billion (approximately US$272.26 million) in new investments during the first half of 2026, while leasing out 13.2 million square feet of space.
According to the company, 52% of the investment activity recorded during the period came after the regional disruption began.
More than 270 Indian companies commenced operations in JAFZA during the first half of 2026, representing a 15.6% increase.
India-UAE non-oil bilateral trade reached US$60.6 billion in 2025, registering 15% growth, further underlining the importance of the trade relationship.
DP World’s latest developments highlight the growing role of Indian ports and logistics networks in maintaining international supply chain connectivity during periods of geopolitical uncertainty.
Source: The Economic Times