Ports closed to Qatar shipping after diplomatic ties severance

LONDON (ICIS)–Ports across Saudi Arabia, Bahrain and the United Arab Emirates (UAE) are understood to be closed to ships from Qatar on Tuesday after the countries severed diplomatic relations with the country.

The states, along with Egypt, cut ties with the country early this week after accusations that the Qatari government supports terrorism.

The move has seen multiple port authorities in the region begin to turn away ships bearing the Qatari flag.

Shipping agents at Saudi Arabian sea ports have been instructed not to receive or unload cargo from any Qatari vessels, while all marine navigation along Bahrain territorial waters will be closed to ships from the country as of 6 June, according to information provided by a trader source.

Metal producer Norsk Hydro, which runs an aluminium joint venture in the country with Qatar Petroleum, also reported issues docking at Jebel Ali.

“Most Qatalum [joint venture] shipments normally go through the large Jebel Ali port in UAE, but this port looks to be closed for all Qatar shipments from Tuesday morning,” the company said.

In the UAE, all Abu Dhabi ports, the Dubai port of Jebel Ali, the Hamriyah port in Sharjah, and the port of Fujairah are also closed to Qatari shipping traffic.

“As part of the decision taken by the United Arab Emirates to break-off all the diplomatic relationship with Qatar, vessels flying flags of Qatar or vessels destined to or arrival from Qatar ports are not allowed to call Port of Fujairah,” said Port of Fujairah harbour master Tamer Masoud in a letter dated 5 June and seen by ICIS.

Commercial travel has also been halted, with Qatar Airways reporting on Monday that it has suspended to and from Saudi Arabia, UAE, Bahrain and Egypt.

The move could potentially preclude Qatari petrochemicals shipments being sold in or even being transported through the UAE, Saudi Arabia, Bahrain and Egypt, and may prompt producers in the country to look further afield for export markets, according to ICIS Middle East markets head Muhamed Fadhil.

“Given its small domestic market for polymers, Qatar tends to consider Asia, particularly China, as a key export market. This diplomatic move may potentially see Qatar sell less to neighbouring markets in the GCC and even more to Asia,” Fadhil said.

Crude futures prices dropped on Monday after the news emerged, sliding 85 cents/bbl for Brent and 74 cents/bbl for WTI compared to the prior settlement as of around 17:00 UK time, and continued to slide through early Tuesday trading.

UAE foreign affairs minister Anwar Gargash said on Tuesday that Qatar would need to provide a roadmap to rebuild trust with its neighbours after “broken promises”.

Additional reporting by Mark Victory

Picture source: Gavin Hellier /robertharding/REX/Shutterstock

We are interested in your views on data providers for price assessments, indices, news and analysis for the petrochemicals markets. This is your chance to express your views on the data and information sources you use. It will take less than five minutes to do.

Click here to tell us what you think.