Saudi Arabia Extends Container Fee Exemptions to Ease Supply Pressures

Container availability in Saudi Arabia is expected to improve after authorities extended fee exemptions on inbound empty containers at two major eastern ports, in a move aimed at easing supply constraints and supporting exporters.

The Saudi Ports Authority, also known as Mawani, announced that it has doubled the exemption period on storage fees for empty containers from 10 days to 20 days. The policy applies to King Abdulaziz Port in Dammam and Jubail Commercial Port.

Officials say the step is designed to encourage shipping lines to reposition more empty containers into the Kingdom, including surplus units currently located at other Gulf ports. By lowering storage costs, the measure removes a key barrier for carriers and is expected to improve cargo flows and reduce logistical bottlenecks.

The announcement comes at a time of heightened regional uncertainty. Rising tensions involving the United States, Israel, and Iran have disrupted navigation through the Strait of Hormuz, a vital global energy route through which roughly one-fifth of the world’s oil supply passes. The instability has led to delays, increased freight rates, and shifting shipping patterns across the Gulf region.

Industry experts say the exemption extension directly targets a major constraint in the supply chain. Daipayan Adhikari, head of strategic projects and logistics solutions at United Warehouse Co. Ltd., described the move as a practical step to improve export efficiency in the Eastern Province.

He said extending the exemption period would encourage shipping lines to bring more empty containers into Saudi ports, helping exporters secure equipment more easily. According to him, improved availability could also support smoother cargo movement and lower operational costs for logistics operators.

The policy aligns with broader efforts to strengthen Saudi Arabia’s role as a regional logistics hub under its National Transport and Logistics Strategy. Authorities have introduced several initiatives in recent weeks to sustain maritime activity despite ongoing disruptions.

Earlier this month, Mawani launched additional support services for vessels and added five new shipping routes in collaboration with global carriers such as Maersk and Hapag-Lloyd. These services bring a combined capacity exceeding 63,000 twenty-foot equivalent units (TEUs).

Recent data also points to growing port activity. Container handling at Saudi ports rose by 20.89 percent year-on-year in February, reaching 667,882 TEUs. The increase reflects steady demand and the Kingdom’s efforts to maintain supply chain resilience during a period of regional disruption.

With exporters facing ongoing challenges linked to global shipping volatility, officials hope the extended exemptions will help stabilize container supply and support trade flows in the months ahead.