Chinese Entrepreneurs Amid the Middle East Conflict: Port Closures and Shipping Surcharge Surge by 30 Times

On February 28, 2026, the United States and Israel launched a large-scale joint military strike against Iran. Subsequently, Iran launched a barrage of missiles and drones targeting various objectives in the United Arab Emirates in retaliation for the Israeli and American attacks. In the early morning of March 1, Jebel Ali Port, which provides logistical support to the US military, was hit by Iran in a targeted attack, and a fire broke out at a dock due to debris falling from an anti-aircraft interception.

As the comprehensive port with the largest scale and throughput in the Middle East, Jebel Ali Port has currently suspended operations across the board. Just 40 kilometers away from Jebel Ali Port, the bustling Dragon Mart in Dubai has become quiet. This is the distribution center for Chinese small commodities in the Middle East, driving a large number of private enterprises to engage in overseas trade. Normally, it is bustling with people coming and going. On March 1st, the Dubai government issued a notice requiring all citizens to work from home and try not to go out on the street. Dragon Mart has completely closed down, with merchants' doors and windows tightly shut.

According to a report by the International Monetary Fund, the trade volume between six Gulf countries, namely the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, and China reached US$257 billion in 2024, surpassing the combined trade volume of these six countries with the United States, the United Kingdom, and the eurozone countries, which amounted to US$256 billion. The report predicts that by 2028, the total trade volume between the Gulf countries and China will increase to US$375 billion.

According to data from the Ministry of Foreign Affairs of China, the United Arab Emirates (UAE) is China's largest export market and second largest trading partner in the Middle East. In 2024, the trade volume between China and the UAE reached $101.838 billion, with China's export volume amounting to $65.593 billion and import volume reaching $36.245 billion. China mainly exports electromechanical products, high-tech products, textiles, clothing, etc., while mainly importing crude oil, petrochemical products, etc.

Due to the blockade of the strait, goods in transit have triggered a "risk warning". "I noticed that most ships on the shipping website have suspended operations, and freight forwarders have withdrawn all quotations, so I am very worried that subsequent orders may not be fulfilled." For the few airlines that are still operating, insurance premiums and freight rates have soared, with increases of more than double. In addition, due to the suspension of operations at Jebel Ali Port, goods waiting for customs clearance are also stranded at the dock. The port's handling capacity is not considered "smooth" at ordinary times, and it is common for more than 3,000 ships to queue up at sea to enter the port. Even if the blockade is lifted later, there is a high possibility of capacity crowding.

What truly deters foreign traders is the exorbitant surcharge covering the entire Middle East shipping route. The current surge in freight rates is solely due to shipping companies imposing war risk insurance. Previously, war risk insurance typically cost over 100 US dollars per container, but now, the quoted price has skyrocketed to 2,000 to 4,000 US dollars per container, with a prevalent range of 3,000 US dollars, representing a 30-fold increase. Even if foreign traders opt for Less than Container Load (LCL) shipments, they still have to bear an additional cost of over 300 RMB per cubic meter due to the price hike.

For Chinese foreign trade merchants in Dubai, their primary concern is personal safety rather than any potential damage to their business. On March 1st, supplies such as rice and eggs in Dubai supermarkets were completely looted. It was only after the government announced that there was an adequate supply of goods and guaranteed food supply that everyone felt slightly relieved. On March 2nd, a spokesperson for the Chinese Ministry of Foreign Affairs stated that China firmly opposes the use of force in international relations and the infringement of other countries' sovereignty and security. It is of utmost urgency to immediately cease military actions to prevent the spread and spillover of war. China is willing to work together with the international community to actively promote peace and prevent war, facilitate the resolution of issues through dialogue and negotiation, and safeguard peace and stability in the Middle East and the world.