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High Freight Rates Drive New India-Middle East Container Services to UAE Ports

Historically high freight yields are spurring container lines to launch dedicated services between India and Middle East ports, with UAE gateways such as Khor Fakkan seeing increased traffic. Danish carrier Maersk has deployed a new shuttle between India's Nhava Sheva and Khor Fakkan, while Chinese line CULines is planning an Asia-Middle East service. Ongoing overland cross-border transport bottlenecks and port congestion continue to elevate regional spot rates and trigger fresh carrier surcharges.

Historically high freight yields are driving a wave of dedicated container shipping loops between India and the Middle East, according to The Loadstar. The trade corridor has experienced operational volatility following Iran-US military tensions, causing Khor Fakkan in the UAE to emerge as a critical alternative import gateway around Strait of Hormuz chokepoints.

Maersk has introduced a dedicated container shuttle loop linking India's Nhava Sheva port (JNPA) to Khor Fakkan in the UAE to offer shippers improved schedule reliability. Industry sources stated that the service launched on 24 September with the departure of the 2,600-TEU Maersk Namibia from JNPA and will initially run on a fortnightly schedule, complementing Maersk's existing sailings between JNPA and Salalah in Oman.

Spot container rates from Nhava Sheva to Khor Fakkan have reached between $6,000 and $7,000 per 40-foot box, while rates to Dammam in Saudi Arabia have risen to $9,500 and rates to Umm Qasr in Iraq hover near $10,000 per 40-foot high-cube container. These yields are drawing Asia-focused carriers; Chinese carrier CULines has firm plans to introduce an Asia-Middle East service in late 2026 or early 2027 under a vessel-sharing agreement with intra-Asia operators, while UAE-based common feeder operator Marsa Ocean Shipping launched a service last month connecting Cochin and JNPA to Fujairah and Sohar.

Despite new capacity, Middle East shipping networks continue to be constrained by overland transport shortages, particularly for cross-border trucking fleets. Hapag-Lloyd halted new Upper Gulf bookings transhipped via Salalah until further notice, while MSC implemented a regional cost recovery surcharge of $1,000 per TEU and $2,000 per 40-foot box on cargo moving from Europe to the UAE and Upper Gulf.

Sources

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