The effective shutdown of the Strait of Hormuz is sending shockwaves through global container supply chains, with new data showing a sharp rise in cargo diversions as shipping lines reroute vessels away from the Persian Gulf.
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According to supply chain visibility firm project44, container shipment diversions have surged more than 360% since the strait was effectively closed following the escalation of hostilities involving the United States, Israel, and Iran in late February.
Daily diversions have jumped from a baseline average of 218 shipments to roughly 1,010 per day. The disruption peaked on March 5, when 2,363 shipment diversions were recorded in a single day—the highest level observed in the region.
Located between Iran and Oman, the Strait of Hormuz is a narrow 21-mile passage connecting the Persian Gulf to the Arabian Sea. While it is widely known as a critical route for global energy shipments—handling roughly a quarter of seaborne oil trade—it also plays a vital role in container shipping serving major Gulf ports.
With vessels unable or unwilling to transit the corridor, carriers have begun rerouting cargo to alternative regional hubs that can be accessed without entering the Gulf.
Tracking data from project44 shows that the largest share of diverted shipments was originally destined for ports such as Abu Dhabi, Jebel Ali Port in Dubai, and Hamad Port in Qatar. A significant portion of that cargo is now being redirected to Khor Fakkan Port on the United Arab Emirates’ east coast, which sits outside the Persian Gulf and remains accessible without transiting the strait.
Other ports absorbing diverted cargo include Port of Sohar in Oman, Port of Hambantota in Sri Lanka, and major Indian gateways such as Mundra Port and Navi Mumbai Port.
The sudden rerouting of cargo is already placing significant pressure on receiving ports. According to project44, India’s key container hubs are experiencing growing schedule disruptions as carriers adjust routes and rebuild shipping schedules.
At Mundra, departure delays have increased by 72%—or roughly 11 days—while arrival delays have climbed 27%, reaching up to 49 days. Meanwhile, Navi Mumbai has seen departure delays rise 118%, adding about 13 days, while arrival delays have increased 16%, or roughly 22 days.
The situation differs sharply from the Red Sea shipping crisis, when carriers were able to bypass attacks near Yemen by rerouting vessels around the Cape of Good Hope.
In the case of Hormuz, however, there is no comparable alternate route. Several major Gulf ports—including Jebel Ali, one of the world’s busiest container hubs—are effectively cut off when the strait is closed, forcing carriers to divert cargo to alternative ports or delay shipments entirely.
According to project44, the disruption represents the largest coordinated rerouting response by container shipping lines since the Red Sea crisis, with carriers pausing bookings, staging vessels in safer waters, and restructuring schedules around accessible regional ports.
Although diversion volumes have begun to ease slightly after the early-March peak, analysts warn that congestion, longer container dwell times, and further schedule disruptions are likely as receiving ports struggle to handle the sudden influx of cargo.
With war-risk insurance premiums rising and security conditions in the region still uncertain, shipping lines currently have no clear timeline for resuming normal transits through the Strait of Hormuz. As a result, the disruption could continue to ripple across global container supply chains in the weeks ahead.
