Middle East Update 2 - Impact on
FCL, LCL & Air Freight
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Dear valued Customer,
The security situation in the Middle East has continued to develop rapidly. The operational environment for transport in the Region and around the Strait of Hormuz remains highly volatile, commercial cargo flows have been further affected by carrier-level safety measures, insurance constraints and short-notice network adjustments.
Impact on FCL
In response to the elevated security risk, several major container carriers have implemented additional operational and commercial measures affecting shipments to and from the Arabian Gulf region. These measures include booking suspensions or restrictions for certain destinations, suspension of vessel transits through the Strait of Hormuz, and rerouting of services to avoid high-risk areas.
Furthermore, carriers are introducing or expanding security-related surcharges and other emergency cost measures on affected trade lanes. The scope and application of these measures may vary depending on the carrier, routing, and shipment type.
One of the contingency measures is that carriers may discharge cargo at alternative ports instead of the originally scheduled destination. MSC already declared “end of voyage” and CMA CGM “force majeure”. Consequently, the onward transportation from carriers chosen Port of Discharge to Final Destination requires separate arrangements and is at cost of the customer. Our teams are closely monitoring and will contact you with individual information for your specific shipment.
Schedule disruptions, port omissions and significant transit time extensions must be expected as carriers adjust their networks and routing strategies.
Given the rapidly evolving situation, operational policies, booking acceptance and service routings may change at short notice as carriers continuously reassess safety conditions and risk exposure in the region. Below given overview can change any time.
Status overview for key countries in the region (subject to change!)
Impact on LCL
The ongoing developments in the Middle East are now directly affecting the LCL consolidation network. Several German consolidators have ceased accepting cargo destined for the region, and transshipment through Jebel Ali is experiencing substantial disruption. Onward distribution from Jebel Ali into the wider Gulf region is currently not possible, and emergency surcharges and routing restrictions are being implemented at very short notice.
Trade Lane Risk Overview
- LCL flows between Europe and the Middle East are currently exposed to critical operational disruption, driven by booking suspensions and limited transshipment capacity.
- Asia–Middle East routings, especially those dependent on Jebel Ali, face severe reliability challenges and sharply increasing cost exposure.
- Connections via the ISC and Red Sea remain elevated in risk, as alternative routings are under pressure and subject to short‑notice adjustments.
- Trade lanes outside the region show indirect impact, with early signs of schedule instability and cost fluctuations as carriers rebalance global networks.
Critical Service Updates
- Key consolidators have suspended LCL acceptance for Bahrain, Kuwait, Qatar and Iraq (Umm Qasr), and major partners such as SACO have extended booking stops to additional Gulf ports including UAE destinations.
- Services to Saudi Arabia are currently limited to Jeddah, King Abdullah, Yanbu and NEOM.
- Routings into the UAE are restricted, with only Khor Fakkan and Fujairah remaining operational for LCL cargo; onward distribution from Jebel Ali within the region is currently not feasible.
- Transshipment capabilities via Jebel Ali are heavily constrained due to widespread carrier suspensions.
- An emergency LCL surcharge of USD 75 per CBM has been introduced by several partners.
- War‑risk and PSS adjustments are being applied with immediate effect and without prior notice.
We are actively examining alternative routings, including solutions via Khor Fakkan, Fujairah, Dammam and selected inland options. However, available capacities remain limited and may be exhausted quickly. Where possible, we recommend temporarily holding back new LCL shipments bound for the Middle East. Storage can be arranged upon request.
Our teams are closely monitoring all ongoing developments and will keep you informed as soon as additional capacity or routing options become available.
Impact on Air Freight
The overall situation remains dynamic and complex as only very limited services are available for flights routed through the Middle East airspace.
Services between Europe and Asia remain overall on normal level for European or Asian carriers. However, capacity on certain routes is tightening due to flight cancellations by Middle-East carriers (especially Qatar Airways, Emirates and Etihad).
Capacity to Australia and New Zealand is heavily affected, especially for main-deck cargo, as Middle East carriers account for a significant portion of belly and freighter capacity on this route.
Status overview for key countries in the region:
United Arab Emirates have begun to reopen partially their airspace for a limited number of flights to facilitate stranded passengers traveling home. Emirates Cargo and Etihad Cargo operate selected freighter services, primarily to clear cargo already on hand.
Qatar airspace remains closed and subsequently Qatar Airways has their flights suspended.
Saudia Arabia airspace is partially open, but airports are operating under restrictions. Saudia is operating freighter services into Jeddah, Riyadh and Dammam. Several other carriers do also operate flights into Riyadh.
Bahrain airspace remains closed due to drone attacks and intercepted missile attacks. Land borders to Saudia Arabia are functioning under military surveillance and used for evacuation of stranded passengers.
Israel airspace remains completely closed due to the multi-front war situation the country is facing. Stranded passengers must use land borders to Jordan or Egypt for alternative flight options.
Kuwait airspace remains totally closed due to the high amount of drone strikes.
Jordan airspace is reported to be open to its normal capacity. Although very view commercial flight options are available, mainly by airline Royal Jordanian. The country plays a critical role for evacuation flights for stranded passengers.
Lebanon airspace is reported as open, although Beirut airport is operating on a skeletal schedule.
Iraq airspace remains totally closed and land borders to Iran and Kuwait are closed, too. Land borders to Turkey are currently the only possible exit.
Iran is under full-scale military assault and subsequently airspaces are closed with no airlines operating into the country. Land boarders remain closed and under heavy military guard.
Impact on Cost
Increasing Oil Price
Recent increases in crude oil prices have an immediate impact on Fuel prices across all modes of transport, Sea / Air / Road. Current market indicators are showing double-digit percentage increases. In response, some ocean carriers have already introduced Emergency Fuel Surcharges, most notably MSC. Similar announcements and adjustments by other carriers are expected to follow.
These implemented surcharges currently are primarily for, but not limited to transports into the Middle East region. Increasing fuel cost can be expected to gradually expand on a global scale and affect all trades.
We appreciate your understanding that increasing fuel cost for any mode of transport will have to be passed on.
Surcharges
Any security- or war-related surcharges introduced by carriers will be passed on transparently.
Operational Guidance
We remain in close contact with our partners and suppliers to react quickly to changing conditions and identify feasible solutions. Feasibility and capacity may change daily, and individual assessment is required for each shipment.
To support operational continuity, temporary storage capacities are available at our key facilities in Frankfurt, Moerdijk and Bremen. This allows early cargo pickup and flexible storage until transport options resume. For shipment‑specific questions, please contact your regular Leschaco representative.
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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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