The ongoing conflict in the Middle East is continuing to have an impact on global logistics, and the situation remains highly dynamic. In short, the biggest disruptions so far are in fuel-related costs and air freight capacity. Herewith an overview of the current position.

For more specific information regarding individual shipments, please do not hesitate to contact a member of the team.

Ocean Freight

Service

• Services in and out of the Gulf have come to a standstill.
• Some additional congestion at ports in South Asia and the Middle East.
• Asia–Europe services are shielded to some extent, as vessels had previously been rerouted away from the Middle East and around the Cape of Good Hope.

Rates

• Extensive surcharges are being applied to Middle East–related movements.
• Bunker costs are rising steeply across all trades.
• Asia–Europe base rates remain relatively stable, but carriers are pushing for GRIs.

Air Freight

Service

• Airspace is closed to commercial flights over Iran, Iraq, Syria, Israel, Bahrain, and Kuwait.
• Severe airspace restrictions are in place over the UAE and Qatar, while Saudi Arabia and Oman have partial restrictions.
• Key Gulf hub airports such as Dubai, Doha, and Abu Dhabi are heavily disrupted, leading to significant capacity issues, particularly for Asia–Europe services.
• Flight times are longer due to rerouting.

Rates

• Fuel surcharges are rising across all trades.
• Asia–Europe rates are spiking.
• Global rates are increasing.
• The spot rate market remains volatile.

Road Transport (Domestic & International)

Service

• No major changes at present.

Rates

• UK diesel prices have increased by an average of 24p/litre (+17%).
• Fuel surcharges are being applied across all modes.

Insurance

• War risk premiums have been withdrawn for many Middle Eastern lanes.
• Insurance has been withdrawn for vessels operating in the Gulf region.
• Cargo insurance rates are increasing.
• War risk definitions are being reassessed.

We strongly recommend that you check to ensure you have adequate insurance coverage under the current conditions.