Ongoing Middle East conflict has severely disrupted shipping through the Strait of Hormuz, causing major export delays for mainland Chinese companies. Shenzhen’s bonded warehouse has accumulated 18,000 cubic meters of goods, reaching 95% capacity and nearing full.
Cross-border e-commerce firms are hit hardest, with one company unable to deliver over RMB 3 million in goods. Freight costs have surged sharply; multiple vessels are stranded in the Persian Gulf or drifting at sea. Orders to the Middle East have dropped 60-70%, insurance premiums have risen tenfold with many insurers refusing coverage. Hundreds of new energy vehicles are stuck at Shenzhen ports.
Logistics firms report ship owners are refusing space allocation. Companies are now forced to switch to more expensive overland routes combining China-Europe freight trains and trucks.