AD Ports Group has stated that disruptions in Red Sea shipping due to the Israel-Hamas conflict are likely to continue into 2026. However, the company is not only mitigating the adverse effects but is also capitalizing on the increased demand for reliable passage through the waterway and alternative trade routes.
Red Sea Disruptions and Feeder Volume
AD Ports Group reported a significant increase in its feeder container volume, which reached 829,000 twenty-foot equivalent units (TEUs) in the second quarter of 2025, a 34% rise from the same period the previous year. For the first half of the year, the volume was 1.55 million TEUs, up 45% year-on-year. A quarter of this volume in the first half of the year went through the Red Sea. The company’s ability to quickly shift its container shipping services has allowed it to benefit from the ongoing situation, as it is less constrained by fixed schedules compared to global shippers.
Impact of U.S. Tariffs
The company noted that the “constant changes in US tariffs” are creating global trade shifts and supply chain disruptions. However, AD Ports Group’s operations are “immaterially” impacted by these tariffs. Instead, the company sees new trading opportunities for the UAE. The UAE’s lower tariff rate of 10% compared to higher rates on other countries like China, Vietnam, and Malaysia is creating a strong incentive for companies to establish assembly and processing capabilities within the UAE. This is driving more shipping volume through UAE ports, even if the number of ship calls hasn’t increased. The value of Abu Dhabi’s non-oil foreign trade in the first half of 2025 surged by 35% to 195 billion Dirhams ($53 billion).
Container Shipping Rates
The Platts Container Index, which measures spot rates on key routes, has shown significant volatility. The index rose sharply from $1,831.25/FEU on March 25 to a peak of $5,414/FEU on June 5, before easing back to $2,035.50/FEU on August 12. Despite this recent decline, AD Ports Group expects container shipping demand and rates to show “continued resilience” for the remainder of the year.
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Source: S&P Global
