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Home Risk & Resilience Disruptions

DHL Oman Head: Strait of Hormuz Handles 20% of Global Oil Trade

2026/05/31
in Disruptions, Risk & Resilience
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DHL Oman Head: Strait of Hormuz Handles 20% of Global Oil Trade

According to timesofoman.com, Roy Scaria, Country Manager of DHL Global Forwarding, Oman, emphasized that logistics now underpins business continuity and economic connectivity — especially amid geopolitical stress on critical chokepoints.

Global Logistics Under Geopolitical Pressure

The global logistics market is valued at more than USD 10 trillion, with nearly 90% of global trade volume moving via sea freight. Roy Scaria noted that recent disruptions — including heightened volatility around the Strait of Hormuz — have intensified pressure on supply chains through rising freight costs, fuel price swings, and extended transit times. He observed that awareness of the Strait has broadened dramatically: “Now honestly, who doesn’t know the Strait of Hormuz today? Earlier only logistics people spoke about it, but now everybody discusses it because global trade impacts everyday life.”

The Strait of Hormuz alone handles approximately 20% of global oil and LNG trade — a figure underscoring its strategic centrality to energy security and global commerce. This concentration makes alternative routing corridors not just desirable but operationally urgent for GCC-based importers and exporters.

Oman’s Strategic Role as Regional Logistics Hub

Oman has emerged as a resilient logistics enabler during crisis periods, according to Scaria. The Sultanate simplified customs processes, established green corridors with GCC countries, and sustained supply chain continuity “during extremely challenging times.” Its geographic advantage — positioned directly before the Strait of Hormuz — combined with multimodal port infrastructure, positions Oman as a credible Plan B. Key assets include Port of Sohar, Port of Salalah, and Port of Duqm.

Logistics already contributes USD 2.8 billion to Oman’s GDP — the sector’s second-largest contributor after hydrocarbons. Under Oman Vision 2040, this contribution is projected to reach nearly USD 36 billion, supporting an estimated 300,000 jobs in the logistics sector. That target reflects a deliberate national strategy to diversify beyond oil and cement regional leadership in integrated trade infrastructure.

DHL’s Multimodal Capabilities in Oman

Scaria clarified a persistent market misconception: “Many people still think DHL only handles air shipments, but DHL is also one of the leading players in Sea Freight globally, and in Oman we hold a major market share in sea freight as well.” This dual-capability supports Oman’s growing role as a SEA-AIR hub, enabling cargo flows from Asia through Oman onward to Europe, the USA, and GCC markets.

The integration of sea and air legs — backed by DHL’s regional network and digital tools — enhances reliability when traditional maritime routes face delays. This model gained traction during recent disruptions, reinforcing Oman’s value proposition for time-sensitive, high-value goods requiring flexible routing options.

Technology, Talent, and Leadership

AI is already delivering measurable impact across forecasting, route optimization, reporting, and operational efficiency, Scaria confirmed. Yet he stressed human judgment remains irreplaceable: “AI can support business, but in logistics we still need to visit customers, understand challenges, shake hands, and walk in with a smile.” To demonstrate emerging capabilities, he highlighted DHL’s Innovation Center in Dubai, which showcases AI, robotics, automation, smart warehouses, digital supply chains, and sustainable transport solutions.

Leadership, for Scaria, centers on empathy and trust. He credited his team’s around-the-clock efforts during crises and urged young professionals to prioritize discipline, ownership, consistency, and integrity — citing Sundar Pichai and Satya Nadella as exemplars whose global leadership stems from mindset, not origin. His message to students and early-career practitioners: “Never settle too early or limit your ambitions. Aim for leadership positions and bigger responsibilities.”

Source: timesofoman.com

Compiled from international media by the SCI.AI editorial team.

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