The recent strikes and retaliatory actions in the Middle East have greatly affected global logistics operations. As your partner in navigating logistics complexities, we want to provide an overview of the current landscape as it relates to freight and the steps we can take together to maintain stability.

While the situation remains fluid, the priority is to move from reactive to proactive planning. Here is the operational reality as it stands today.

SCHEDULING & ROUTE DIVERSIONS

Following the IRGC's warnings, all major carriers, including Maersk, MSC, Hapag-Lloyd, and CMA CGM, have suspended transits through the Strait of Hormuz, reducing total transit volume by 86% (March 1st).

• The Impact: Direct services to Jebel Ali, Dammam, Doha, and Abu Dhabi among others in the region have been disrupted. Cargo originally destined for the Gulf is being diverted to alternative hubs like Salalah (Oman), Colombo, or Singapore, leading to immediate widespread port congestion.
• Actionable Step: If you have containers currently on the water bound for the Middle East, we are tracking their diversion status now. Expect vessel bunching and significant "knock-on" delays as carriers restructure their global service loops to bypass the region.

FREIGHT COSTS & INSURANCE COVERAGE

We are seeing immediate market adjustments, including new conflict-related surcharges from major ocean carriers. Additionally, changes in regional insurance premiums are influencing vessel routing. We recommend identifying time-critical shipments early so we can evaluate the best balance of cost and service.

• The Impact: War-risk insurance premiums have skyrocketed, and major carriers have implemented substantial Emergency Conflict Surcharges (ECS). New surcharges are being applied not just to new bookings, but in some cases to cargo already afloat.
• Actionable Step: It is helpful to flag any reefer, hazmat, or time-critical shipments now. This allows us to pre-clear alternate routings based on your specific business priorities and balance transit speed against the cost of alternative options. Some carriers have stopped accepting reefers and hazardous cargo transiting this region due to the high risk of them being delayed in a high-temperature environment or restricted port.

AIR FREIGHT REROUTING & CAPACITY

The regional airspace closures (covering Iran, Iraq, Jordan, and the UAE) have halted important international air cargo hubs in Dubai, Bahrain, and Kuwait and many carriers are now rerouting around the region entirely.

• The Impact: This is resulting in longer flight times, added fuel stops, and a noticeable drop in available capacity between Asia and Europe.
• Actionable Step: For the coming months, we suggest moving from "fixed delivery dates" to "delivery window" planning to account for long-haul flight paths through safer, more remote regions which currently have reduced regional capacity and higher fuel costs.

ENERGY COST & GLOBAL COMPLIANCE VOLATILITY

The impact of this conflict isn't limited to the Gulf. Energy volatility affects diesel surcharges and petroleum-based production inputs globally. Furthermore, expect tighter screening from the U.S. Treasury as sanctions are expanded.

• The Impact: Even shipments far from the conflict zone may face increased documentation scrutiny and potential holds, as well as increased fuel costs.
• Actionable Step: Now is the time to increase production buffers for critical SKUs and ensure all compliance documentation is carefully prepared to avoid delays.

FORWARD PLANNING

In a rapidly changing environment, the most effective strategy is a proactive one. Our focus remains on protecting your supply chain’s logistical continuity. We will continue to monitor these developments and provide updates as the situation evolves.

Whether it’s rerouting cargo already on the water or staging inventory to buffer against stretching transit times, we are here to handle the complexity so you can focus on your broader business.

If you have specific concerns about a high-priority shipment or want to review your current contingency plans, contact us for a strategic logistics review.

 

MarineTraffic data shows Strait of Hormuz transits fell ~70% following US strikes on Iran and subsequent regional escalation.