Since tensions intensified across the Middle East over the weekend, logistics and transport networks have faced significant disruption both within the region and globally.
Ongoing instability is expected to place additional pressure on supply chains and increase operating costs. Below is a summary of the current — and fast-moving — situation, together with the likely downstream impacts.
Ocean Freight Services
- The Strait of Hormuz is now effectively inaccessible, with carriers cancelling sailings and instructing vessels to move to secure locations.
- Some shipping lines have temporarily suspended broader Middle East services.
- Substantial war risk surcharges are being applied to cargo moving in and out of the region.
- Carriers that had recently reinstated limited Suez Canal transits have confirmed renewed diversions via the Cape of Good Hope.
- Secondary impacts are expected across neighbouring trade lanes, particularly on Asia–Europe routes.
- Global ocean freight rates may rise, especially if hostilities persist and fuel prices continue to increase.
Air Freight Services
- Airspace across large parts of the Middle East is currently closed, severely limiting flight activity to and from the region.
- Most commercial airlines have suspended regular services within the affected areas, with operations largely restricted to evacuation and repatriation flights.
- Long-haul services that normally tranship through key regional hubs are also being affected, resulting in flight cancellations, diversions, congestion, and reduced global air cargo capacity.
- Delays to shipments are unavoidable, and once restrictions are lifted, a backlog of cargo is expected.
- Air freight rates — including outbound services from Asia — are increasing rapidly.
- Additional surcharges, such as war risk and fuel adjustments, are likely to be introduced across a range of international air freight services.
Global Freight Services is closely monitoring the situation. Given the rapidly changing environment, we will be taking proactive steps to minimise disruption wherever possible and to support our customers.