FILTERED RESULTS
FILTERS
Ads Top
DARK MODE
CHART
    Filters
      Symbols
      Sentiment
      Impact
      Search
      FILTERED RESULTS

        

      Upgrade your plan
      Dashboard

      Cargo operators find Riyadh workarounds – at a price

      • Airport closure forces goods onto roads
      • Longer journeys add to logistics costs
      • ‘Healthcare and perishables prioritised’

      The closure of Riyadh’s main airport will push up transport times and logistics costs for cargo, but it is unlikely to lead to goods shortages, experts have told AGBI.

      Delivery companies that use King Khalid International have turned to alternative routes to keep serving the Saudi capital. They said cargo could be transported by truck from seaports and other airports without serious disruption, albeit with the possibility of delays.

      King Khalid airport has been closed since Saturday, when the deadliest attack on the country in a decade led to the deaths of 13 people.

      In 2025, the airport handled almost 600,000 tonnes of cargo, equivalent to that carried by six fully laden container ships.

      “Air freight operations to and from Saudi Arabia are currently limited,” said Tobias Maier, CEO of DHL Global Forwarding Middle East & Africa. “We are already working on a dedicated contingency solution for air cargo to provide additional capacity and alternative routing options.”

      Such alternative routes rely largely on road freight and other airports, a DHL spokesperson told AGBI. Many were established following the outbreak of the Iran war, which has disrupted supply chain networks across the Gulf.

      The routing options include a “dedicated pharma charter”, the spokesperson said, which flies pharmaceutical products from Liège in Belgium to Dubai three times a week. From there, they are taken by truck to Riyadh.

      These journeys can take longer due to “different entry gateways, longer flight paths or additional road transport segments”, the spokesperson said.

      Other companies have adopted similar strategies. Kuehne+Nagel International, a Swiss logistics company, said it had rerouted all its shipments that usually pass through King Khalid to the UAE.

      The company is confident it can “maintain service continuity and minimise where possible any potential impact on shipments”, a spokesperson said. “Healthcare and perishables cargo will be prioritised.”

      Inflation is under control

      Supply chain routes are relatively easy to adjust, according to Wouter Dewulf, professor of air transport management at the University of Antwerp.

      “Cargo is very footloose,” he said.

      Companies can reroute deliveries through seaports and airports in nearby countries, such as Bahrain, Qatar and the UAE, then transport them into the capital.

      “If you cannot fly to Riyadh, it’s annoying,” said Dewulf. “But it’s not a disaster.”

      Rerouting does increase logistics costs, however – and these expenses have already risen in Saudi Arabia this year because of the conflict.

      Despite the marked rise in shipping costs, inflation for consumers has remained steady throughout this year. Meanwhile, the amount the Finance Ministry spends on subsidies has jumped, leading economists to suspect that the state is paying for the increased cost of imports.

      Further reading:

      The impact this has on the budget depends on how long the crisis lasts, Dewulf said. King Khalid airport is due to reopen on Saturday. But aviation experts have said its closure could be extended, while airlines are making their own contingency plans.

      Once it reopens, the knock-on effects on air freight should be manageable, said Dewulf.

      “Cargo always comes back before passengers,” he said. Unlike travellers, who often avoid routes that have recently experienced risk, even after the danger has passed, “goods are less sensitive”, said Dewulf. “If there’s a good price, then it will work.”


      Source: AGBI
      .

      Terra Founder Do Kwon Sentenced to 15 Years in Prison for Fraud