Gulf Resolution Needed, Says DHL Chief Fearing for Asia-Europe Trade

Why It Matters

The disruption reveals how geopolitical shocks can cripple global supply chains and may permanently reshape Asia‑Europe freight routing, driving higher costs for shippers.

Key Takeaways

• Bahrain airspace closed for seven weeks after US/Israel strikes.
• DHL shifted air‑freight hub to Muscat and Riyadh within weeks.
• GCC governments provided rapid over‑land trucking capacity.
• Middle‑East capacity loss pushes Asia‑Europe air‑freight rates higher.
• Crisis may cement Saudi Arabia as a new logistics hub.

Pulse Analysis

–Israel strikes on Iran, sent shockwaves through the region’s air‑freight network. DHL’s Express Middle‑East division, which relies heavily on Bahrain as a hub, was forced to suspend operations for seven weeks. Within days, the company rerouted its aircraft to Muscat in Oman and Riyadh in Saudi Arabia, leveraging a robust road‑transport backbone that linked the Gulf states. Government‑backed trucking capacity and swift regulatory approvals enabled DHL to keep containerised cargo moving despite the hostile environment.

While DHL managed to preserve service levels, the broader market feels the strain of missing Middle‑Eastern capacity. Asian exporters that depend on fast connections to European customers now face tighter slot availability and elevated freight rates, a trend already reflected in the surge of jet‑fuel prices. The shortage also pushes shippers to explore alternative corridors, such as over‑land routes through the GCC or longer sea legs, which can add days to transit times. Consequently, price volatility is expected to linger until regional airspace stabilises.

The crisis has accelerated a strategic realignment across the Gulf Cooperation Council. Saudi Arabia, with its Red Sea ports and expanding inland logistics network, is emerging as a potential new hub for intercontinental freight, a shift that could persist beyond the conflict. Private operators and governments demonstrated unprecedented coordination, establishing a 47‑day rollout of over‑land capacity that may become a permanent supplement to air services. For global supply‑chain planners, the episode underscores the need for diversified routing options and proactive risk‑mitigation strategies in an increasingly volatile geopolitical landscape.