Supply chain planners may see some respite as shippers and forwarders have teamed up to connect a road-based land bridge from the Port of Jebel Ali in Dubai and the Port of Mina Salman in Bahrain to Egypt and Israel. From there, the cargo can then be transported to Europe and beyond.
Transit times set to be slashed by the improvised land bridge
The current re-routing of Ocean freight around the Cape of Good Hope (South Africa) has offered a safe and secure service that manufacturers and suppliers have been searching for due to a dependence on materials reaching Mediterranean ports, but the increase in transit times has shifted the demand for shippers to improvise solutions.
Although the current transit times are averaging at 20 days, shippers are estimating that an unloaded container from Jebel Ali (UAE) could be transported to Haifa (Israel) within 4 days, but this will prompt deep analysis from Logistics Managers who will need to weigh the cost against time benefits.
Shipping costs are expected to see a rise, but time-sensitive goods will benefit
Time-sensitive goods are set to benefit most due to the upcoming seasonal demand changes, but this improvised solution does come with an increase in costs; Loadstar reported that shipping costs have increased on average by 15-20%. Although it poses a concern for manufacturers, the hope is for the land bridge to be more cost-effective to operate than the re-routing around South Africa.
Working with carriers that are utilising the land bridge, our teams can provide shippers with faster transit times that can help them maintain their production levels as the seasonal demands are set to change throughout the coming months. If you have any concerns and would like to know more, contact our team of experts at firstname.lastname@example.org.