While the reopening of the Strait of Hormuz following the recent peace deal is a positive milestone for the UAE’s logistics sector, industry experts warn that the road to normalcy will be long. Freight rates, which skyrocketed during the crisis—with some container costs jumping from $1,500 to over $10,000—will not drop overnight. Executives note that while sea volumes and commodity movement will likely rebound in the near term, a full recovery of logistics operations and the clearing of cargo backlogs will take at least three to four months. Furthermore, insurance providers are expected to remain cautious, likely keeping premiums elevated even as shipping lanes begin to clear.

For manufacturers and businesses, the stability brought by the ceasefire is a relief, yet consumers should not expect immediate relief in retail pricing. Price benefits must work their way through complex procurement cycles and shipping contracts, a process that experts estimate could take several weeks to materialize. Industry leaders like Bharat Bhatia of Conares have emphasized that while sentiment is improving and trade routes are becoming more predictable, the current calm should not lead to complacency. Instead, firms are being urged to use this period of relative stability to bolster their supply chain resilience and planning discipline to better withstand any future disruptions.