The emergence of the Strait of Hormuz as a transshipment hub for container shipping is a recent phenomenon since the area was primarily focused on the oil and gas trade. Economic growth and diversification have been associated with rising cargo volumes in the Persian Gulf, contributing to its emergence as a major trade and logistics platform. This mainly took place since the early 2000s, with the rapid growth of trade between Europe and Asia. About 33 million TEUs are handled by ports around the Strait of Hormuz. Transshipment, which is almost entirely focused on Dubai, with Jebel Ali and Khor Fakkan as major facilities, is the result of massive investment in port infrastructure. Dubai has become a hub for relay and interlining, with feeder services in the Persian Gulf, South Asia, and East Africa.
The port of Salalah in Oman is also a competing transshipment hub. Still, its growth is challenged, mainly due to the decisions of shipping lines to use other ports in light of the political instability in nearby Yemen. Other ports in the Persian Gulf, such as Dammam, which serves Saudi Arabia, and Shahid Rajaee, which serves Iran, are hinterland-based. The recent decline of Shahid Rajaee, which handles about 80% of Iran’s container trade, is linked to international trade sanctions imposed after 2011.