Chinese logistics firms are reducing their presence in the Middle East as the ongoing war intensifies geopolitical risks and disrupts international trade flows.
Companies are now redirecting operations and resources to other regions, including Africa, Southeast Asia, and the Americas.
A senior executive at an international logistics company operating a full-chain network in Dubai explained that their operations in the UAE include customs brokerage, overseas warehouses, container truck fleets, and pickup services, supported by a team exceeding 100 employees.
Amid the current instability, many Dubai-based staff are now working on flexible schedules, while some have returned home early for holidays.
“In view of the Middle East conflict, our business footprint in the region will contract further. We are therefore reallocating resources to routes serving Africa, Southeast Asia, and the Americas, including moving personnel to other countries as part of this strategic adjustment,” stated Fan Jiansheng, CEO of a Shenzhen-based international logistics firm.
Although companies are actively reconfiguring their operations and focusing on alternative routes, they are facing pressure from rising freight costs.
“Freight rates on routes to the United States, Europe, South America, and Southeast Asia have surged by 10–20% or more across air, courier, and sea shipments due to higher fuel surcharges,” said Li Liangjuan, head of a Shenzhen-based freight forwarding company. “From late February to early April, prices increased four to five times within just one month,” she added.
In reaction to these escalating costs, numerous European and American trading firms and cross-border e-commerce businesses have started bulk buying and stockpiling goods to hedge against further increases in freight rates.
“Coupled with current order volumes, many of our North American warehouses are now operating at full capacity,” reported Zhao Kaijie, head of a warehousing and logistics company based in Shenzhen.