Middle East Update 1 - Impact on
Sea Freight & Air Freight
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Dear valued Customer,
The security situation in the Middle East has escalated significantly following recent military strikes on Iran and subsequent counteractions in the region.
As a result, the operating environment for international shipping – particularly in and around the Strait of Hormuz, the Arabian Gulf and the Persian Gulf – has become increasingly volatile.
Several incidents affecting commercial vessels have been reported, and the overall security risk level for maritime operations has been reassessed by carriers and insurers. The situation remains highly dynamic and may evolve further at short notice.
Impact on Sea Freight
Major container lines have implemented concrete operational measures in response to the heightened security risk.
- MSC has announced a suspension of new bookings for cargo destined to the Middle East until further notice as a precautionary safety measure.
- Maersk has suspended vessel transits through the Strait of Hormuz and is rerouting selected services, including ME11 and MECL, via the Cape of Good Hope.
- Hapag-Lloyd has suspended transits through the Strait of Hormuz and introduced a War Risk Surcharge (WRS) for cargo to and from the Upper Gulf, Arabian Gulf and Persian Gulf.
- CMA CGM has implemented security-related adjustments, including vessel rerouting and the introduction of emergency conflict-related surcharges.
Not all carriers have formally declared a full booking stop, nevertheless, the suspension of transits through the Strait of Hormuz and the rerouting of services are effectively resulting in reduced capacity, longer transit times, schedule instability and booking restrictions for cargo to and from the region.
Customers should therefore expect potential booking limitations, rolling of confirmed shipments, omitted port calls, extended transit times and short-notice operational changes.
In addition, war risk surcharges, emergency surcharges, Demurrage / Detention / Storage, insurance-related adjustments and other security-related cost components may be introduced and can occur with immediate effect. Marine insurers are reassessing or tightening war risk coverage for the region, which may further impact carrier deployment decisions.
Impact on Air Freight
Many airlines suspended their service to the Middle East with immediate effect.
The public airspace of many countries in the region is closed and will not be used until further notice, as announced by most airlines. The current situation is highly dynamic and unpredictable. Adjustments may be taken day by day.
Several airlines are declining new bookings and restricting cargo acceptance for already booked shipments to avoid further backlogs at airport facilities.
Here’s what this means for you:
- Closure of public airspaces: Confirmed airspaces are at this moment Israel, Lebanon, Jordan, Iraq, Qatar, Kuwait, Bahrain, Saudi Arabia, Iran and United Arab Emirates.
- Hubs in Middle East: Qatar, Emirates and Etihad are representing major market capacities for passengers and cargo handled via their HUBs in the Middle East. Due to the current flight suspensions this may also impact their capacity to other regions.
- Routing: The closure of airspaces may also impact flight routes from Europe to Asia Pacific and airlines need to find alternative routes. This may affect transit times.
- Rates: As airspaces for Middle East and Russia are closed, alternative routings are needed which may affect rates and fuel surcharges.
- Backlog: For exports towards middle east a backlog is expected, becoming more severe with every day the situation continues.
What We Recommend
We strongly recommend that customers review their shipment forecasts for the next two to six weeks at earliest possible stage.
Early visibility enables to assess routing alternatives, verify booking acceptance, secure capacity where available and prepare contingency solutions in advance of further restrictions. Carrier policies may change at very short notice. Booking acceptance, routing structures, surcharge implementation and port accessibility can be adjusted daily depending on the security assessment.
We therefore advise building additional flexibility and extended lead times into supply chain planning. For time-critical, high-value and Dangerous Goods cargo, we recommend proactively reviewing alternative options and concepts where operationally feasible.
Next Steps
We are continuously monitoring carrier advisories, insurance developments and publicly available security updates. We remain in close contact with our partners service providers to evaluate the operational feasibility of each shipment.
Should your cargo be affected, we will inform you, proactively work with you and ask for instructions to identify the most suitable solution. Priority remains transparency, early communication during this period of heightened uncertainty.
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For any questions or shipment-specific inquiries, please reach out to your regular contact within the Leschaco Group
Your Leschaco Customer Advisory Team |
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Disclaimer
Please note that all information reported in the Customer Advisory is to the best of our knowledge at the time of writing, but we cannot guarantee its correctness or accuracy. |
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