The sharp escalation of military action in the Middle East is already sending shockwaves through global logistics networks, disrupting both air and ocean freight operations within the region and beyond.
Continued instability could further strain supply chains and drive up costs, below is a summary of the current position, which remains very fluid.
Air Freight
The majority of Middle Eastern airspaces have been closed, significantly impacting flight operations to and from the region.
Airspace restrictions have also disrupted long-haul services that typically transit the region, leading to cancellations, diversions, congestion and a reduction in global air freight capacity.
Multiple airlines have suspended services across key hubs, mainly affecting routes serving Bahrain, Iran, Israel, Iraq, Jordan, Kuwait, Lebanon, Qatar, Saudi Arabia and the United Arab Emirates.
Operational backlogs and delays will persist while restrictions remain in place.
Air freight costs, including services connecting Asia, are already rising sharply.
Additional surcharges — including war risk and fuel surcharges — may potentially to be imposed for many global air freight services.
Ocean Freight
Many carriers have cancelled ocean freight services through the Strait of Hormuz following reported Iranian attacks on vessels, with delays anticipated for cargo already in transit. Other carriers have cancelled services to and from the entire Middle East.
Additional pricing has already been applied to shipments that actually move to and from the Middle East, including war surcharges and general rate increases (GRIs).
Carriers that had recently resumed some transits via the Suez Canal have announced fresh diversions around Africa.
Knock-on effects may impact services and rates on adjacent trade lanes, notably Asia–Europe services.
Global ocean freight rates could climb, especially if the conflict is prolonged and fuel prices continue to rise.
Atlantic Pacific are closely monitoring developments, which remain very dynamic, and will be working hard to mitigate disruptions wherever possible.
