Jebel Ali Port Central for U.S.- Bound Shipments, Global Transshipping and Persian Gulf Oil
WASHINGTON, Oct. 24, 2024 /PRNewswire/ — Exiger, the market-leading supply chain and third-party risk AI company, today released proprietary research generated by its AI platform 1Exiger that identifies the sectors most vulnerable to a potential blockage in the Strait of Hormuz, which hosts the world’s twelfth busiest port, Jebel Ali. In the midst of continued Houthis attacks on vessels, worsening conflict in the Middle East and the recent U.S. strike on weapons storage facilities in Yemen, there is increasing concern about how a disruption to this trade route could impact the global economy. Exiger analyzed shipments traversing the Strait of Hormuz that use the Jebel Ali port. Key findings include:
Merchandise, textiles and luxury goods most at risk: 58 different industries may be impacted by the closure of, or reduced traffic through, the Strait of Hormuz. This includes various kinds of merchandise, textiles, and luxury goods, with companies in those industries accounting for 29% of shipments leaving Jebel Ali in 2024.Thousands of U.S.-bound shipments could be disrupted: In the last two years, 10% of identified outbound shipments leaving Jebel Ali were destined for Europe or North or South America. Roughly 17,000 of these shipments were headed to the U.S., carrying industrial goods and commodities ranging from turbojet engines to ethyl alcohol.Transportation of Persian Gulf oil could be interrupted: It is well known that the Strait of Hormuz is a vital sea lane for oil produced in the Persian Gulf — a commodity that continues to power much of the global economy.Transshipment delays could impact global companies: Less well known is the importance of the Strait of Hormuz for transshipping (i.e., the transfer of goods between ships). 350,000 shipments over the past two years involved transactions where the shipper and receiver were part of the same corporate family. Approximately 26,000 of these shipments were destined for Europe or North or South America, carrying goods ranging from cars to electric transformers and machinery parts.
The Strait of Hormuz is one of the top strategic shipping straits in the world and the effects of a blockade would be compounded by existing challenges in the Suez Canal, which has seen trade volume drop by 70%+ in the past year. Exiger continues to monitor at-risk supply chains and is working closely with customers to proactively prepare for any potential disruptions.
For more information on Exiger’s analysis, visit here.
About Exiger
Exiger is revolutionizing the way corporations, government agencies and banks navigate risk and compliance in their third-parties, supply chains and customers through its software and tech-enabled solutions. Exiger’s mission is to make the world a safer and more transparent place to succeed. Empowering its 550 customers across the globe, including 150 in the Fortune 500 and over 55 organizations across the Defense Industrial Base and government agencies, with award-winning AI technology, Exiger leads the way in ESG, cyber, financial crime, third-party and supply chain management and recently achieved FedRAMP® Moderate Authorization. Named one of Fast Company’s 2023 ‘Brands That Matter’ and recipient of the Third Party Risk Association’s 2024 Innovator Award, Exiger’s work has been recognized by 50+ AI, RegTech and Supply Chain partner awards. Learn more at Exiger.com and follow Exiger on LinkedIn.
For more information, please contact:
Kody Gurfein
Chief Marketing Officer for Exiger
1.914.393.0398
kgurfein@exiger.com
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SOURCE Exiger
