Oman’s Salalah port reported a 16% decline in container volumes amid the Red Sea crisis

Oman’s Salalah Port reported a 16% decline in container shipment volumes in the first half of the year as ships reroute around the southern tip of Africa to avoid drone and missile attacks in the Red Sea. The port is situated near its border with Yemen, and handled  1.679 million shipping containers in the six months up to June 30 compared to 1.999 million containers a year earlier according to a report released by Salalah Port Services Co on Thursday, 15th Aug 2024.

Shipping line routes that are being avoided due to the attacks comprise the Red Sea area where Salalah is located, Dean Davison, head of maritime advisory for Infrata said. Missile and drone attacks in the Red Sea have been going on since October by Yemen’s Houthi Rebel Militants. According to them, they are acting in solidarity with the Palestinian cause against Israel’s occupation of the Gaza Strip.

This frequent bombing has forced the ocean freight carrying container ships to reroute the vessels away from the Suez Canal to around the Cape of Good Hope located on the southern tip of Africa.

Salalah port expects the container volumes to fall even more during the rest of the year if this crisis remains unresolved. The port operators added that the disruptions do not seem to ebb away soon.

Volumes at the port’s general cargo terminal rose 4 percent to 11.655 million tonnes in the first half of the year driven by a rocket demand for limestone and gypsum according to reports.

On Thursday, 15th Aug 2024, Dubai owned port and logistics company DP World reported a 59% drop in first half profit, hurt by the shipping disruptions.