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As Iran war hits trade hubs, China’s logistics firms scramble for alternatives

Disrupted Middle East transit routes squeeze sector, pushing freight costs higher and pressuring supply chains

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About half of China’s oil comes from the Middle East, underscoring the importance of the Strait of Hormuz (pictured, with anchored LPG gas tanker on Wednesday), which also serves as a crucial trade corridor for the country’s exports. Photo: Reuters
Mia Nurmamat
Logistics companies in China are feeling the strain from the US-Israeli war on Iran, as volatile crude prices and disrupted transport routes ripple through global supply chains.
With e-commerce cargo stranded in the Middle East and freight rates skyrocketing, industry insiders said they expect the fallout to last months, even as US President Donald Trump signalled the war could end soon.
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While some saw opportunities in alternative Central Asian corridors, Chinese businesses reliant on the region as a critical trade artery remained exposed.

At a Greater Bay Area airline logistics forum in Guangzhou on Tuesday, one exhibitor said his company had only recently moved its transshipment hub to Doha, where cargo is diverted to Madrid.

The strategy aimed to bypass tensions in the Red Sea, where Yemen’s Houthi rebels had attacked commercial and military ships in what the group’s leadership described as an effort to end Israel’s war in Gaza.

But the firm’s decision had unexpectedly backfired, landing it in even deeper trouble. “We chose this route at higher costs to avoid the Red Sea tensions, but the current situation looks very bleak,” he said.

“We currently have about 100,000 tonnes of cargo stranded at the airport, mainly e-commerce parcels, and both the sellers in China and clients in Europe are extremely worried.”

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How US-Israeli strikes on Iran are sending shock waves through global energy markets

How US-Israeli strikes on Iran are sending shock waves through global energy markets

“The only small consolation is that the conflict broke out during the off-season,” he added. “We’ve just passed the Chinese New Year and the Middle East is observing Ramadan, so for now the losses remain within the range our insurers can cover.”

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