Middle East poultry trade monitors Red Sea risk after the Houthis' blockade warning

Middle East poultry market participants said it is too early to determine whether poultry trade flows will be disrupted following the Houthis' July 20 declaration of a naval blockade on Saudi Arabia, with traders saying they are closely monitoring the situation and noting that sustained restrictions could significantly alter regional logistics.

Platts, part of S&P Global Energy, assessed chicken breast CIF Middle East, basis Jebel Ali, at $2,750/metric ton on July 20, while chicken shawarma was assessed at $2,800/mt, chicken grillers at $2,200/mt, and chicken leg quarters at $1,520/mt.

Market participants said the immediate impact on UAE imports appeared limited, with existing supply chains through Gulf ports continuing to operate. However, attention has shifted toward Saudi Arabia, where the Red Sea port of Jeddah serves as one of the region's main entry points for poultry imports.

"If Bab al-Mandab is really closed, transportation costs will increase," one exporter said. "Suppliers and exporters will have to use another route. There would be no option."

The eastern side of the Bab al-Mandab Strait, a key shipping chokepoint at the southern entrance to the Red Sea, is controlled by Yemen.

The exporter source added that any prolonged disruption would leave exporters with little choice but to adjust shipping routes, although it remains uncertain whether the announced blockade will materially affect commercial vessel movements.

Another trader said the impact could differ depending on origin and existing vessel routing. Brazilian cargoes retain routing flexibility, while shipments from parts of the Far East could face significantly longer voyages if access through Bab al-Mandab becomes restricted.

Another participant said it remained difficult to judge the extent of any disruption.

"If the blockade really happens, the problem will be huge," the source said.

However, the source added that cargoes already routed through the Suez Canal may not face the same level of disruption, highlighting the uncertainty over how shipping lines will respond.

Participants said it was still too early to assess any impact on poultry prices, with the market waiting to see whether the announcement develops into sustained disruption to commercial shipping or remains limited in practice.