A road map for peace between the US and Iran is poised to pave the way for the Strait of Hormuz to reopen on Friday, offering respite after months of disruption to global shipping.
The effective closure of the waterway caused a surge in energy and shipping prices, as well as severe delays in the supply of essential goods.
Despite the blockade in the maritime chokepoint at the mouth of the Arabian Gulf, the UAE has continued to trade with the rest of the world – sometimes with surprising results.
Some cars being shipped to Dubai found their way to the port of Colombo in Sri Lanka, a major transshipment hub for vehicles.
Organisations having trouble sourcing goods have worked to secure local suppliers or ordered items to be sent by air rather than sea.
Challenges still to navigate
If the agreement between the US and Iran does result in the strait being reopened, analysts believe it will probably take several months for the situation to return to normal.
Paolo Carlomagno, partner at Arthur D Little in Dubai, said that the blockade of the Strait of Hormuz had made Colombo “quite important” as a storage site for vehicles in transit.
Many of those cars were destined for Jebel Ali, which – like Colombo – is an important roll-on, roll-off port and transshipment hub.
“High volumes are being stopped there [in Colombo] temporarily waiting to be delivered. This has an impact on delivery times and customer experience,” Mr Carlomagno said.
Just days after the US-Israeli war on Iran broke out at the end of February, Dubai-bound cars vehicles sent from Japan and South Korea were being unloaded at Colombo and at Hambantota, Sri Lanka’s other major port.
The vehicles will reach their intended destinations, Mr Carlomagno said – but only after severe delays.
Other cargo has been rerouted through Khor Fakkan, although Mr Carlomagno said the goods may be taken to Jebel Ali for customs clearance.
The blockade has also lead to an increase in traffic through Saudi Arabia's King Abdullah Port and Jeddah Islamic Port on the Red Sea, with freight then moved by road to other parts of the Arabian Peninsula, arriving later and at a higher cost than usual.
Some UAE organisations have even turned to air freight to source essential goods.
Swapping seas for skies
EMFIS, a certification organisation that promotes ways to reduce exposure to electromagnetic radiation inside buildings, had to figure out how to source the special paint it supplies to clients.
The paint, bought from Germany, France, Belgium and Switzerland, would usually be sent by sea and arrive in the Emirates at Jebel Ali Port.
“We had plenty of shipments that were to go by sea freight; we were able to shift them over to air freight,” said Federico Marangoni, founder and chief executive of EMFIS.
“Air freight opened more quickly than sea freight. OK, it has a cost impact, but that cost impact can be absorbed at a later stage if we plan everything better or if we group shipments. You take a hit, you take a punch, but you have to stand up.
“We have gone out of our way and way beyond our scope of work to find solutions with suppliers, with shipping companies, to be resourceful and to engage much, much more in communication with the clients, but also with the supplier.”
He added that there had initially been delays of two or three weeks in sourcing supplies, but that these were “manageable”.
Higher costs, shorter trips
Although air freight is about 40 per cent more expensive than sea freight, Mr Marangoni said, it enables the faster delivery of goods. A shipment from Europe can arrive in the UAE in three days, after which it needs three days for customs clearance.
He added that the UAE authorities had done “an excellent job” in communicating with businesses affected by the blockade.
“In times of crisis, instead of complaining, most people with whom I spoke here were trying to be resourceful and to be innovative,” he said.
Even before the framework agreement was announced, Mr Marangoni had been planning for a return to seaborne deliveries in the coming months.
Schools learn to adapt
Schools in the UAE have also had to deal with the effects of the blockade.
Kenny Duncan, head teacher of Nord Anglia International School Dubai, said the institution had benefitted from “strong, effective and consistent supply chains”, and had replaced international suppliers with local ones.
The disruption took its financial toll, because the price of materials needed for a building project has risen.
“Like other sectors, we have seen increased costs due to logistical disruptions in the supply of goods and resources from abroad,” Mr Duncan said. “And like many schools, we rely heavily on annual orders placed ahead of the new academic year, and these costs have certainly increased for 2026-27.
“Where possible, we are diversifying by seeking local suppliers and, if they prove successful and offer products of comparable quality, we will move to these as a more permanent option rather than continue to rely on imported goods.”
He added that the school has recruited more staff from within the region, and fewer from further afield.
Looking ahead, Mr Carlomagno said that the events of the past several months have prompted governments to ensure infrastructure is resilient as well as efficient, and establish alternative routes or transport options to minimise any future disruption.
“What we are increasingly asked for in terms of helping governments … leaders are increasingly interested in resilience. Will it be like before? Probably, but with a resilience mindset,” he said.
