BrazilSaudi Arabia sailing ahead in GCC’s growing feeder shipping market
In the global container shipping market, the feeder segment is standing out as an attractive bright spot, according to research from Arthur D. Little, with Saudi Arabia holding the best cards to become the Gulf’s regional leader.
Maritime transport is by the far the most important manner for facilitating global trade, accounting for approximately 80% of the total volume. By 2030, container transport demand is projected to reach 1,150 million twenty-foot equivalent units (TEUs), growing at a 3% CAGR.
The feeder segment, which covers shorter, last-leg, local, or regional journeys between smaller regional ports and major global hubs, such as Western India and the Gulf or across the North Sea, is expected to see faster growth, found Arthur D. Little’s analysis. Feeder vessels typically have a capacity of less than 3,000 TEU, compared to large liners that can have capacities of up to 24,000 TEUs for long-distance routes such as Asia-Europe and Asia-North America.
According to Arthur D. Little’s estimate, the feeder shipping market is expected to see steady annual growth of 5% by 2030, reaching $451 billion in revenue. “This growth is driven by a combination of global shipping factors such as rising disposable incomes and e-commerce growth and feeder-specific elements including closer to home supply chains and better feeder ship efficiency.
Alongside a more rosy growth outlook, the feeder segment is also more profitable, found the analysis. Between 2019 and 2023, feeder operators saw a return on assets (ROA) of 17% - 23%, well above that of adjacent sectors such as rail, trucking, and traditional maritime transport. One of the key drivers lies in the durability of vessels – they can last 15 to 25 years before replacement – and the lower competition on feeder routes.
Middle East and Saudi Arabia
By 2030, the feeder market of the Middle East, East Africa, Turkey (MEEAT) and South Asia region is forecast to hit $8 billion, making it one of the fastest growing feeder markets in the world.
At the heart of this regional surge is Saudi Arabia, which according to Arthur D. Little’s calculations is poised to poised to capture up to 45 percent of Red Sea feeder trade and 35 percent of Gulf trade, driven by infrastructure investment, geographic advantage, and Vision 2030's logistics transformation agenda.
Red Sea throughput alone is projected to nearly double from 12 million TEUs in 2021 to 23 million by 2030, positioning the Kingdom as a linchpin for intra-regional and East–West container movement.
“Saudi Arabia sits at the intersection of macroeconomic shifts in global trade, regional port infrastructure growth, and heightened investor appetite for logistics assets that deliver strong, stable returns,” said Paolo Carlomagno, partner at Arthur D. Little “Its ability to combine geographic proximity to high-growth corridors with government-backed investment strategies creates a uniquely scalable feeder shipping environment that few markets globally can match.”
“Saudi Arabia offers a rare combination of volume potential, policy alignment, and port readiness that makes it a natural launchpad for feeder shipping operations,” added Alexandre Sawaya, principal at Arthur D. Little. “The Kingdom is no longer a peripheral player in maritime trade. It is fast becoming a focal point for regional connectivity and a strategic base for operators seeking scale and resilience.”
