Middle East Supply Chain Updates

Recent military action against Iran is disrupting global supply chains, affecting Middle East airspace and key trade routes throughout the Persian Gulf, including the Strait of Hormuz and Suez Canal. 

OIA remains responsive: connect with your local branch or account manager to identify a solution.  

Key Impacts

• The Strait of Hormuz is shut down, with many ships turning around or re-routing 
• Airlines have suspended flights across the Middle East 
• Houthi militants in Yemen are threatening retaliation and may resume attacks on commercial shipping in the Red Sea.  
• Maritime risk insurance prices are rising significantly 
• Oil tanker prices are becoming exorbitant 
• 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.  
• Schedule variability: changes to new bookings, departure dates, arrival times, or port calls. 
• Cost adjustments: higher freight rates, insurance costs, fuel costs, or temporary surcharges. 

Ocean Freight

• All new cargo bookings to the affected countries are suspended.
• Many leading ocean carriers have paused sailing through the Strait of Hormuz due to security concerns. Vessels have re-routed and turned around.
• Cargo vessels that were planning to move through the Suez Canal will revert to transiting around Africa’s Cape of Good Hope.
• Ocean carriers are beginning to communicate potential PSS & GRI rate increases on many global trades. The exact amounts and dates are still being reviewed.
• Carriers and co-loaders are starting to communicate their emergency and war surcharges.

Air Freight

Airspace restrictions remain in place for these countries:

Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Qatar, Syria, and the UAE.

• All cargo bookings to these areas are on hold.

Partial closures: Saudi Arabia. Airlines from some neighboring countries are still flying (EgyptAir, Oman Air, etc.)

• Airlines are continuing to serve Asia-Europe routes via restricted airspace; however, capacity and rates are being affected.
• Capacity remains available from Asia to Europe and vice versa due to Asian-flagged carriers who have rights to fly over Russian Airspace and CIS carriers (Silkway, etc.) whose services remain ongoing.

The following airlines have temporarily cancelled flights until further notice:

• Qatar Airways – Doha
• Emirates – Dubai
• Etihad – Abu Dhabi
• Kuwait Airlines – Kuwait
• Royal Jordanian – Partial service cancellations to affected Countries
• Turkish Airlines – Freighter services suspended temporarily

Carrier Updates

• COSCO
• CMA CGM
• Hapag-Lloyd
• Maersk
• MSC
• ONE
• Yang Ming