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Overland deliveries of supermarket supplies could become more common in the weeks ahead as companies continue to navigate the turmoil affecting traditional shipping routes.
With no clear progress towards secure passage through the Strait of Hormuz, supermarkets have turned to longer road routes to import UAE goods.
Since the Iran war began on February 28, the significance of the strait to global trade has become more apparent by the day.
Despite a two-week ceasefire and peace negotiations, a satisfactory resolution for international shipping remains out of reach, leaving hundreds of tankers stuck at sea.
That has forced regional retailers to explore alternative routes to keep shelves fully stocked, and limit the economic impact with stable prices at the checkout.
Spinneys is a big chain that is testing new routes from the UK. A recent trial shaved five days off predicted road transit times.
The first articulated lorry loaded with non-perishable goods arrived at warehouses in Dubai on Saturday, to restock supermarkets.
“This was a trial shipment of potato chips, organic children's snacks, and porridge oats to see what we can do,” said Tom Harvey, general commercial manager at Spinneys.
“Our expectation is that certainly we will start to expand this into a wider range of goods, with more dry goods and groceries, but also things that are long shelf life.
“We used to bring chilled products by sea, such as eggs, but we've more recently been bringing this by air.
“This will allow us to come to a more affordable cost solution [for] freight than we've been using of late.”
Trans-Europe express
The route from Kent in the UK, through Belgium, Italy, a Mediterranean sea crossing to Egypt before a second ferry crossing to Saudi Arabia, and over land to the UAE was expected to take 21 days.
Long distance lorry drivers managed to cut that to 16 days, offering hope that the route could become more widely used during a prolonged closure of shipping routes.
Raj Abrol, chief executive of risk platform Galytix, said the maritime disruption was having a global impact.
“A naval blockade of the Strait of Hormuz moves this from a price shock to a structural disruption of global trade,” he said.
“The impact goes well beyond energy prices. It ripples through shipping routes, insurance premiums, supply chains and input costs across every sector.”
The pinch of rising food inflation, caused in part by the soaring cost of fuel, has been felt around the world.
In the US, the cost of everyday goods in the consumer price index has risen 3.3 per cent in a year.
Meanwhile in the UK, the Food and Drink Federation has amended its forecast from 3.2 per cent food and beverage inflation, to more than 9 per cent by the end of 2026.
And although the price of some fruit and vegetables soared in the UAE during the immediate aftermath of the first attacks on the country, they have since stabilised.
General inflation is expected to remain moderate at around 2 per cent, despite the backdrop of war.
Operational change
Grandiose is the largest chain of supermarkets in the UAE, with more than 45 outlets across Dubai, Abu Dhabi, Ras Al Khaimah and Al Ain.
Like its competitors, the brand’s operations managers have been forced to use alternative routes to maintain the availability of goods.
“While maritime routes through the Strait of Hormuz continue to play a central role in global trade flows, the situation has accelerated the adoption of more diversified and flexible logistics strategies,” said Sara Rachid, chief executive at Gallega Global Logistics, the delivery partner of Grandiose.
“Our contingency measures were activated early, with a focus on securing capacity, optimising routing and maintaining uninterrupted supply flows.”
Delivery companies have looked to alternative maritime pathways while expanding the use of regional trans-shipment hubs.
Many are also increasing overland freight solutions from the neighbouring markets of Saudi Arabia, Oman and Jordan.
“While sea freight remains the primary mode of transport, we are seeing a gradual and strategic increase in road freight, particularly for essential and fast-moving goods where speed and flexibility are key,” said Ms Rachid.
“This multi-modal approach enhances agility and ensures a consistent flow of goods into the UAE.”
Supermarkets have also looked at sourcing more items locally, reducing the need for imported goods.
Grandiose currently has more than 2,400 locally sourced products. Its chief executive, Mussaab Aboud, said there were no signs of resources running low, despite continuing tensions.
“From a consumer standpoint, demand remains stable, with a modest increase in staple categories such as rice, flour and canned goods,” Mr Aboud said.
“These trends are being closely monitored in real time, with replenishment strategies continuously refined to ensure seamless availability.
“Our message to families across the UAE is clear: supply remains strong, shelves remain full, and there is no need for concern.”
To help the UAE gain wider access to supply routes, a green corridor has been established with Oman to keep goods flowing freely into the country.
Buyers have also switched strategy, exploring new suppliers and markets to cut down transit times for road routes.
Availability at Geant supermarkets remains strong, according to Gilbert Abi Zeid, vice president of logistics at parent company GMG.
“There are some categories, particularly chilled, frozen and certain fresh imported products, where logistics have become more complex due to longer transit times, higher transport costs and tighter shipping conditions,” Mr Abi Zeid said.
“These are being carefully managed through a combination of alternative sourcing, regional procurement, close co-ordination with suppliers and the flexibility to prioritise critical shipments when needed.
“For customers, the key message is that stores are being replenished regularly and the sector remains focused on maintaining consistent access to essential goods through responsible planning and disciplined execution.”
