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Airspace restrictions remain in place for these countries:

Bahrain, Iran, Iraq, Israel, Kuwait, Lebanon, Qatar, & Syria.

• Airspace is now open in the United Arab Emirates (UAE), and airlines from some neighboring countries are flying (EgyptAir, Oman Air, etc.)

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Several leading ocean carriers—CMA CGM, MSC, Hapag-Lloyd, etc.—have already announced emergency fuel surcharges for routes to and from the Middle East.

Most carriers are expected to implement emergency fuel surcharges in April, although the exact amounts and implementation dates are still being reviewed.

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Peak Season Surcharges (PSS) are already in place for many routes to and from the Indian subcontinent.

India, the world’s #3 oil consumer, imports >80% of its crude oil needs and 60% of its cooking gas, with the Middle East accounting for a large chunk of the supply.

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U.S.-led military action against Iran is disrupting global supply chains, affecting Middle East airspace, and crippling key trade routes like the Strait of Hormuz. The United States has established a maritime warning zone in the Persian Gulf, Gulf of Oman, North Arabian Sea, and the Strait of Hormuz, effectively halting shipping. Houthi militants in Yemen are threatening retaliation and may resume attacks on commercial shipping in the Red Sea.

Key Effects

• Airlines have suspended flights across the Middle East
• Maritime risk insurance prices will rise significantly
• Oil tanker prices are becoming exorbitant

Following a key Supreme Court decision that invalidated tariffs under the International Emergency Economic Powers Act (IEEPA), the Trump Administration is implementing a new 10% global tariff under Section 122 of the 1974 Trade Act.

• New tariffs take effect February 24^th
• The tariffs can last for up to 150 days
• Goods from Mexico and Canada are excluded due to previous trade agreements.
• The law is unclear about whether the administration could restart the tariffs immediately after the 150 days via another executive order. The U.S. Congress may have to take action to extend them.

IEEPA tariffs will no longer be collected effective February 24, 12:01 am EST. There is currently no operational guidance from U.S. Customs and Border Protection (CBP) regarding IEEPA refunds. Importers should ensure their ACH refund accounts are properly configured with CBP, as this will help prevent delays if/when refunds are authorized.

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The U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not provide authority for certain tariff measures imposed under that statute. IEEPA is a national security law that allows the president to regulate economic activity during declared emergencies.

The decision does not affect all existing tariffs, and other trade authorities remain in place. As agencies evaluate next steps, the broader tariff landscape continues to evolve. The court ruling did not indicate how the U.S. government expects to return billions of dollars that it has already collected from importers. 

OIA is actively monitoring these developments and will share practical guidance with shippers as more clarity becomes available.

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Two of the world’s top ten container shipping companies will merge, pending shareholder and regulatory approvals. Hapag-Lloyd signed an agreement with ZIM Integrated Shipping Services Ltd., under which Hapag-Lloyd will acquire 100% of ZIM’s shares at USD $35.00 per share, with the total transaction exceeding $4b. The combined business would involve 400+ vessels and >3m TEUs of capacity. 

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