The ongoing closure of the Strait of Hormuz and the escalating regional conflict are driving unprecedented demand for alternative freight routes, as evidenced by Etihad Rail’s recent movement of 459,000 tonnes amid surging freight rates and disrupted maritime trade. This geopolitical volatility underscores Etihad Rail’s critical role in ensuring supply chain resilience and expanding inland logistics capacity. To capitalize on this strategic advantage and mitigate risk, we must accelerate network capacity enhancements and collaborate closely with regional partners to optimize the Oman Green Corridor and other land-based trade routes. This proactive investment will position Etihad Rail as the indispensable freight backbone amid sustained Gulf trade disruptions.
Etihad Rail Freight Moves 459,000 Tonnes in 9 Days Amid Hormuz Disruption
Etihad Rail Freight has operated more than 100 freight trips over nine days, moving approximately 459,000 tonnes of cargo — equivalent to around 7,900 containers — as the UAE activates its rail network to compensate for disrupted maritime routes through the Strait of Hormuz. The Al Ghail Dry Port Rail Terminal in Ras Al Khaimah has been bolstered with five additional train services to handle increased demand.
UAE Rail Momentum Grows as Trade Routes Face Strain — Etihad Rail on Track for Passenger Launch
Rail has shifted from a long-term diversification play to an immediate strategic imperative for the UAE. Etihad Rail remains on track to launch passenger services by 2026 and has awarded multibillion-dollar design-and-build contracts for the civil works and station packages of the high-speed rail line connecting Abu Dhabi and Dubai. Inland connectivity is already being prioritised to counter supply chain disruption, including the opening of a green corridor with Oman to accelerate cross-border flows.
BREAKINGBREAKING: Trump Sets 8 PM Tuesday Deadline — Threatens to Bomb Iran's Power Plants and Bridges
US President Donald Trump has set a hard deadline of 8 p.m. ET Tuesday (April 7) for Iran to agree to reopen the Strait of Hormuz or face devastating military strikes on its power plants and bridges. Trump declared 'Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran' and stated Iran could be 'taken out in one night.' Iran has rejected a proposed 45-day ceasefire, calling instead for a permanent end to hostilities. The deadline represents the most acute escalation of the US-Iran conflict to date, with direct implications for Gulf energy infrastructure and freight corridors.
BREAKINGOil Surges Above $110/Barrel as Trump's Iran Deadline Looms — Hormuz Remains Shut
Global crude oil prices rose above $110 per barrel on Tuesday as markets priced in the risk of a major US military strike on Iranian infrastructure. The Strait of Hormuz remains closed to commercial traffic, with Hapag-Lloyd, CMA CGM, and Maersk all maintaining suspensions of Gulf transits. Vessels rerouted around the Cape of Good Hope are adding 10–20 days to delivery times, while war-risk insurance surcharges and emergency levies from carriers are making Gulf operations materially more expensive. Traffic through the Strait of Hormuz dropped by 90% versus pre-conflict averages.
BREAKINGIran Rejects 45-Day Ceasefire; Saudi–Bahrain Causeway Closed as Strikes Intensify
Iran has rejected a US-proposed 45-day ceasefire that would have reopened the Strait of Hormuz, demanding instead a permanent end to US-Israeli military operations. Airstrikes across Iran killed at least 15 people on Tuesday. Saudi Arabia closed the King Fahd Causeway linking it to Bahrain as a precaution amid Iranian threats. Iran urged citizens to form human chains around power plants to deter US strikes. The UN Security Council is scheduled to vote on a draft resolution on the Strait of Hormuz, with little prospect of agreement.
Iran War Ripple Effects: Freight Rates Spike, Cape of Good Hope Rerouting Adds 20 Days
The Iran war is registering directly in freight rates, transit times, and inventory buffers. Vessels rerouted around the Cape of Good Hope are adding 10–20 days to delivery times. War-risk insurance surcharges, fuel surcharges, and emergency levies from carriers like MSC are making Gulf operations materially more expensive. The World Economic Forum's Global Value Chains Outlook 2026 found that 74% of business leaders now prioritise resilience investments — a mindset shift dramatically validated by the Iran conflict.
Maersk Suspends Bookings to UAE, Gulf Ports; Accepts Jeddah and Salalah
Maersk has suspended all cargo bookings to and from the UAE (including Khor Fakkan), Oman, Iraq, Kuwait, Qatar, Bahrain, and Saudi Arabia (Dammam & Al Jubail). Bookings are accepted to/from Saudi Arabia (Jeddah & King Abdullah Port), Jordan, Lebanon, and Israel. From Monday 6 April, bookings will also be accepted from Oman (Salalah and Sohar) and the UAE (Khor Fakkan — import only).
Dubai Activates Oman Green Corridor via Hatta for Cargo Rerouting
Dubai Customs has launched a temporary framework allowing cargo to be rerouted via Oman through the Hatta land border crossing, in coordination with Oman's Directorate General of Customs. Approved operators include DP World for sea cargo and dnata for air cargo. All shipments move in sealed containers under customs supervision, with inspections at both the Hatta crossing and Oman's Al Wajajah entry point.
Hafeet Rail (Sohar–Abu Dhabi) Now 30%+ Complete; Trial Operations Targeted for 2027
The Hafeet Rail cross-border link connecting Sohar Port in Oman to Abu Dhabi is now more than 30% complete. The 238 km line is designed to carry up to 193,000 TEUs per year and will replace hundreds of trucks per trip while cutting transit times by up to half. Trial operations are expected by 2027, providing a critical bypass for Gulf freight that currently relies on the Strait of Hormuz.
DP World Expands Inland Container Depot Capacity at Jebel Ali to Handle Rerouted Cargo
DP World has announced an emergency expansion of inland container depot (ICD) capacity at Jebel Ali Free Zone, adding 15,000 TEUs of temporary storage to absorb cargo rerouted from disrupted Gulf sea lanes. The expansion is coordinated with Etihad Rail's freight operations to enable seamless port-to-rail transfers for onward distribution across the UAE and GCC.
Saudi Arabia Railways Launches New Freight Routes Linking Gulf Ports to Jordan
Saudi Arabia Railways (SAR) has announced the launch of new rail freight routes connecting Arabian Gulf ports directly to the Haditha border crossing near Jordan. The routes build on a baseline capacity of approximately 2,500 TEUs per day and are designed to provide an overland alternative to the Strait of Hormuz for containerized cargo moving to/from Europe and the Levant.
Oman Rail Accelerates Sohar–Muscat Freight Corridor Amid Regional Disruption
Oman Rail has fast-tracked construction timelines on the Sohar–Muscat freight corridor, citing the Strait of Hormuz disruption as a strategic accelerant. The 270 km route, designed to carry containerised and bulk cargo, is now expected to reach partial operational status by Q4 2026, six months ahead of the original schedule. Oman Rail is positioning the corridor as a direct competitor to Etihad Rail's UAE–Oman landbridge.