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Qatar Bolsters Preparedness to Secure Supply Chains Amid Rising Strait of Hormuz Tensions

Economy

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Doha, April 23 (QNA) - The logistics and transport sector is no longer merely an operational link in global trade; it has become a strategic pillar of global economic security, where geopolitics intersects with energy flows and trade routes. At the heart of this transformation, Qatar stands out as an advanced model in crisis management, having strengthened its logistics system through modern infrastructure and flexible operational capabilities that have enabled it to maintain stable goods flows despite regional and international disruptions.

Amid escalating global conflicts, from the Russia–Ukraine crisis to rising tensions in the Middle East, the logistics sector is undergoing unprecedented challenges that have exposed vulnerabilities in parts of the system while accelerating a reshaping of global trade routes. Under growing risks in key maritime corridors, shipping companies have revised their operational strategies by diverting routes and extending voyage times, directly impacting transport costs, insurance premiums, and supply chain efficiency.

This comes as the global economy enters a critical phase in which geopolitics increasingly intersects with energy and trade flows, particularly given the strategic importance of the Strait of Hormuz, through which around 20% of global oil supplies and large volumes of liquefied natural gas pass, making it one of the most sensitive chokepoints in the international trade system.

Markets have incurred significant losses estimated at around 500 million barrels of oil due to shipment disruptions and supply interruptions, including approximately 190 million barrels stranded within tankers in the Gulf region. Daily losses are estimated at about $435 million across trade and energy sectors, reflecting the scale of pressure on the global economy amid rising shipping and insurance costs.

The crisis is deepening as maritime disruptions persist and risk costs increase. Estimates suggest that export disruptions could result in losses exceeding $276 million per day in some scenarios, alongside monthly losses reaching up to $13 billion in economies directly linked to energy corridors. Global supply chains have also experienced widespread bottlenecks and container congestion, intensifying inflationary pressures and raising production and transport costs worldwide.

In this volatile environment, the impact of crises is no longer limited to the energy sector but extends to food, industry, and technology, as global trade and supply chains undergo major restructuring, with increasing reliance on alternative routes that are more costly and time-consuming—reshaping global economic balances around security and stability considerations.

In this context, Board Member of the Qatar Chamber and Chairman of the Qatar Association for Freight Forwarding and Logistics (QAFL), Eng. Ali bin Abdul Latif Al Misnad, stated in remarks to Qatar News Agency (QNA) that current tensions have clearly impacted shipping and maritime insurance costs, noting higher premiums linked to geopolitical risks and operational challenges that have pushed companies to reroute shipments through alternative ports outside conflict zones.

He added that the repercussions extend beyond cost and time, imposing a more complex reality on supply chain management, including higher operating costs, longer delivery times, and increased need for advanced planning and inventory management, signaling a shift from efficiency-maximization models to resilience and crisis-readiness frameworks.

Within these challenges, Qatar stands out for its adaptability, maintaining stable supply flows despite regional and international disruptions, supported by advanced infrastructure, a flexible logistics network, and accumulated crisis management experience.

Al Misnad confirmed that the domestic market remains stable due to strategic stock availability and effective coordination among relevant authorities, which has helped limit the impact of global fluctuations.

Amid continued uncertainty, attention is focused on sensitive maritime routes, particularly the Strait of Hormuz. Any escalation in this corridor, he noted, would pose a major challenge; however, he emphasized that regional countries, including Qatar, have proactive plans in place involving route diversification, enhanced logistics connectivity, increased stock levels, and ongoing coordination with regional and international partners to ensure supply continuity.

These evolving conditions are prompting companies to reassess their strategies more deeply, as reliance on a single route or supplier is no longer considered viable. This is reflected in a growing shift toward supply chain diversification and exploration of new markets.

Al Misnad stressed that these developments reflect a growing awareness of the importance of building more resilient and adaptable supply chains in an increasingly volatile global environment.

For his part, economist Dr. Hashem Al Sayed said that the closure of the Strait of Hormuz caused a near-total paralysis of regional maritime traffic, turning it into one of the world’s most critical chokepoints, with direct repercussions on energy flows.

In remarks to Qatar News Agency (QNA), Al Sayed pointed to massive losses in the oil market estimated at around 500 million barrels due to disrupted shipments, including approximately 190 million barrels stranded in oil tankers in the Gulf region. Losses related to the loading of crude oil and petroleum products from the Middle East have reached about 310 million barrels, based on the average daily loading rates recorded in 2025.

He added that the closure led to unprecedented container congestion and severe bottlenecks in supply chains across vital trade corridors, placing additional burdens on global trade. This has driven up maritime shipping costs due to a sharp rise in risk-related insurance premiums, as insurers imposed additional charges that were passed on by shipping companies to importers, resulting in higher freight costs, more complex operations, and emerging inflationary pressures.

Al Sayed noted that the crisis has extended to key sectors such as aluminum, sulfur, and fertilizers. Around 8% of global aluminum exports, equivalent to nearly 5 million tons annually, pass through the strait, while urea exports from the region, estimated at about 22 million tons annually, have come to a halt. This has directly impacted the cost of producing essential crops and exacerbated food crises. Rising urea prices, coupled with 17% decline in gas supplies, have increased agricultural production costs by around 20%, while World Bank estimates suggest global food prices could rise by as much as 18%.

On another front, Al Sayed highlighted that the Strait crisis also affects the backbone of the technological sector. Disruptions to navigation and attacks on infrastructure have triggered a supply crisis in helium gas, for which Qatar is the world’s second-largest exporter, accounting for roughly one-third of global demand. With part of Qatar’s production halted, helium prices have surged by around 50%, threatening advanced technology supply chains. These developments have impacted the global economy through rising shipping costs and declining purchasing power, alongside a downward revision of global growth forecasts to approximately 3.1% and an increase in inflation to 4.4% this year.

Despite this turbulent environment, Al Sayed emphasized that Qatar stands out as a model in shock management, benefiting from its economic diversification strategies. The country has successfully maintained stable goods flows thanks to advanced logistics infrastructure and proactive policies that have strengthened food security and diversified import sources.

Strong financial reserves and strategic stockpiles have also helped mitigate the impact of global volatility on the domestic market, alongside flexible supply chains and effective institutional coordination. Qatar also possesses vast gas reserves sufficient for decades without facing bottlenecks.

Amid ongoing uncertainty, logistical security and strategic preparedness are becoming top priorities for both governments and companies, as reliance on a single route or supplier is no longer viable. As geopolitical disruptions continue to reshape global energy and trade maps, the importance of diversifying logistics networks and exploring alternative corridors is increasing, marking a structural shift in the concept of global economic stability.

In the search for strategic alternatives to secure energy flows, discussions have emerged on reshaping regional supply maps, particularly as wars are no longer isolated political events but have become decisive factors in redefining global trade rules. As their impact on the logistics sector unfolds, the real challenge lies in countries' ability to move beyond crisis management toward leveraging these transformations in an increasingly complex and continuously evolving global landscape. (QNA)

 

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