From Hub to Hurdle? Red Sea Crisis Knocks Middle East Ports in Global Rankings

The Container Port Performance Index 2020-2024 (CPPI 2024) report released by S&P Global and the World Bank shows that average port performance has declined globally in recent years including the Middle East.

The Index measures the time ships spend in port and relates this to the number of containers moved during that time. This approach makes the CPPI a unique diagnostic tool that can highlight patterns in port operations and shed light on global and regional supply chain dynamics.

Today, ports are facing a confluence of disruptions: the lingering effects of COVID-19, climate-driven constraints like restrictions at the Panama Canal or the ongoing disruptions caused by typhoon Ragasa, and geopolitical or security disruptions like the Red Sea crisis.

Regions differ considerably: East Asian ports remain among the best performers; South Asia shows strong recovery; Europe and North America are holding ground while the outlook for ports in the Middle East is a mixed bag of caution and opportunity.

Key Findings from CPPI 2024

The CPPI 2024 covers vessel calls across 403 container ports from 2020 through 2024. It introduces multi-year trend analysis for the first time so that port performance is not just judged on year-to-year changes but on overall trajectories over several years.

Specifically for the Middle East and North Africa (MENA), the report notes that in earlier years (e.g. 2020) these ports had relatively strong performance, but their average performance has notably declined in 2023-2024.

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The Red Sea crisis in particular has taken a toll, forcing re-routing, increasing risk, and adding delays that reduce the operational efficiency of ports in that region.

What it Means for Global Trade

The CPPI’s results reinforce just how fragile global maritime trade remains in the face of multiple overlapping shocks. Some of the implications:

• Route risks and costs rise: Disruptions like in the Red Sea or Panama Canal add latency, force longer voyages (fuel, time), and raise insurance or security risk. That undermines the predictability which shippers prize. CPPI suggests that even well-run ports can be set back by external route disruptions.

• Resilience and adaptability matter more: Ports that invested in flexibility - alternate routes, robust hinterland connectivity, faster customs or transshipment handling, digital tools - are faring better. The presence of a multi-year trend analysis in the report underlines that one-off improvements won’t suffice; what matters is sustained upward or stable performance.

• Trade flow fragmentation: As some regions’ ports decline (or become riskier), trade flows may shift. Shippers might bypass certain nodes, choose more stable or efficient hubs even if farther, or consolidate in fewer ports. Over time, this could change the geography of trade - reinforcing strong hubs and weakening others. The CPPI suggests that those port-regions hit by political or environmental risk may see relative decline.

• Cost pressures & competitiveness: Lower port efficiency increases dwell time, increases inventory and shipping costs, which in turn can make exporting/importing goods more expensive. Countries paying high shipping/port costs may lose competitiveness. Effective performance isn’t just a technical metric — it has direct impact on trade margins and supply chain competitiveness.

Implications for Ports in the Middle East

For ports in the Middle East, CPPI 2024 offers both warning signals and possible opportunities. Middle East ports initially led the rankings in 2020, but their average performance declined notably in 2023 and 2024, largely due to the repercussions from the Red Sea crisis.

The route around the Cape of Good Hope increases voyage time and cost, reduces transit reliability, and makes Middle East transshipment hubs less attractive. For example, DP World has publicly flagged that its trade flows and profits have been affected by Red Sea disruptions.

Slipping Performance vs Earlier Strength

While MENA ports were strong in earlier years, the CPPI indicates a slip in performance in the latest period. That suggests that earlier gains are not being sufficiently consolidated. Causes could include overloaded upstream or downstream infrastructure (customs, land transport), underinvestment in digital/automation components, congestion, or risk premiums imposed by rerouted traffic.

Need for Diversification and Resilience

Ports in the Middle East may need to invest more aggressively in resilience: alternative routing (if Red Sea is risky), redundancy, improved security, faster clearance, and digitalisation. Also, hinterland connectivity comprising road and rail links. can be improved so that ports are not bottlenecked by land transport or customs.

Opportunity for Strategic and Geopolitical Positioning

Even as risks rise, Middle East ports remain geographically well placed as transshipment and trade junctions between Asia, Europe, and Africa. If ports can manage security risk, improve performance, offer reliability, then they could capture redirected trade flows.

Major investments in logistics corridors, logistics parks, and international partnerships are also helping. Emerging regional infrastructure initiatives (land corridors, new rail links) could reduce dependency on sole maritime chokepoints.

Risks and What to Watch Going Forward

• Whether Red Sea instability continues or worsens, any escalation can further degrade performance and re-route traffic.

• How climate or environmental constraints for waterways and canal operations affect major chokepoints relevant to the Middle East.

• Whether Middle East ports can keep up with technological modernization in terms of automation, crane productivity, night operations, digital interfaces with shipping and logistics firms.

• How competitors in East Asia, Southeast Asia, and South Asia continue to improve; if they pull far ahead, the cost of catching up for Middle East ports goes up.

Choppy Waters Ahead

The CPPI 2024 report underscores that global maritime trade is entering a more volatile era, where external disruptions of security and climate change are just as important as local port operations in determining competitiveness.

For the Middle East, early strength is being challenged by route risk, security disruptions, and perhaps insufficient investment in resilience.

But there is still a window: with the right strategy, ports in the region can recapture or retain a pivotal role in global trade. Success will lean on improving reliability, reducing delays, investing in backup routes and infrastructure, and offering trade partners stable ports even in uncertain times.

Read More: How Ports Can Use Simulation Training to Minimise Shipping Disruptions