As conflict in the Middle East continues, the global logistics landscape is shifting and placing increasing strain on supply chains.
The most immediate effects are being seen in fuel prices and air freight capacity, both of which are contributing to broader disruptions across international transport networks.
Air Freight
Air cargo has been the most heavily impacted sector so far. Key transit hubs in the Gulf—such as Dubai, Abu Dhabi, and Doha—are operating under severe restrictions, which has led to a reduction in capacity on the vital Asia–Europe route and a spike in freight rates. Globally, airlines are contending with rising fuel costs and limited access to regional airspace.
Ocean Freight
Ocean freight is also feeling the effect following the closure of the Strait of Hormuz, which has significantly constrained vessel traffic in and out of the Gulf. While global base freight rates have not yet spiked dramatically, increasing bunker fuel costs are beginning to push prices upward across key shipping lanes. Bunker costs aside, the Asia–Europe corridor remains relatively stable for base ocean freight rates, perhaps sheltered so far by the ongoing rerouting via Africa. However, after a period of low rates, carriers are currently pushing to implement General Rate Increases (GRIs), indicating that costs may be rising in the near future.
Road Transport
Higher fuel prices are directly impacting road transport costs. Diesel prices have risen sharply, resulting in immediate increases in fuel surcharges for both domestic and international transport.
Insurance
Insurance markets have tightened considerably, especially for shipments involving the Gulf region, where war risk coverage is becoming harder, or impossible to secure. Globally, premiums are increasing and policy terms are being reviewed. Customers should urgently review their insurance coverage to ensure they remain adequately protected under current conditions.
For further information, or to discuss supply chain support during this crisis, please contact a member of the Global Freight Services team.