Ocean Shipping Capacity from China to the Middle East Is Tight
With the continuing impact of the geopolitical situation in the Middle East, shipping risks in the Strait of Hormuz have intensified and effective RoRo vessel capacity has contracted significantly. Many vessels are choosing to detour around the Cape of Good Hope or enter the UAE via transshipment through Duqm, Oman, lengthening transit times while ocean freight rates and war-risk insurance costs rise in parallel.
Limited vessel space and longer in-transit periods for vehicles directly increase pressure on companies' tied-up capital and have become the core factors currently restricting growth in the export volume of China-made automobiles to the Middle East. Although TKM MOTORS remains optimistic over the long term about Dubai's advantageous port location and the potential of its local automobile consumer market, in light of current logistics realities, it has prudently reduced its 2026 export target to 1,500 vehicles. We sincerely hope the situation will ease and the trade and shipping environment will return to stability as soon as possible.