We continue to closely monitor the escalating military conflict in the Middle East and the significant disruption it is causing across global supply chains. Recent developments include new attacks across the United Arab Emirates and Qatar, with strikes affecting shipping and aviation infrastructure. Notably, the port of Salalah in Oman has been closed following a drone strike, further impacting regional logistics operations. The situation remains highly dynamic and operational conditions may change at short notice.
Oil markets remain extremely volatile as a result of the conflict. Following last week’s spike to more than USD 120 per barrel, prices are continuing to fluctuate around USD 100 amid ongoing attacks and uncertainty regarding the potential release of strategic reserves. These developments are contributing to rising operating costs across the logistics sector and increasing volatility in fuel-related surcharges.
Cargo movements between the UK and Europe and key manufacturing regions including the Far East, South-East Asia, and the Indian Subcontinent are experiencing severe disruption. Ocean carriers are currently routing vessels around the Cape of Good Hope, resulting in widespread schedule instability, service omissions, and ad-hoc voyage terminations. Air freight capacity remains significantly reduced due to regional airspace restrictions and widespread flight suspensions across the UAE, Qatar, and key regional hubs. This has contributed to an estimated global air cargo capacity reduction of up to 22%, with long-haul routes requiring extended rerouting. While some Gulf carriers have begun restoring limited operations, many international airlines continue to suspend services, leading to longer flight times, congestion at alternative hubs, and growing cargo backlogs.
Customers should expect longer lead times, constrained capacity, rolling delays, and elevated freight rates across all modes of transport as logistics networks realign around alternative gateways such as Sohar, Khor Fakkan, Salalah, and Jeddah. Fuel surcharges and war-risk surcharges continue to rise, and overall capacity remains volatile across both air and ocean freight services.
ਹਵਾਈ ਮਾਲ
Operations across the air freight sector remain severely disrupted. Ongoing airspace closures, military activity, and drone strikes continue to limit available cargo lift and force aircraft to avoid affected areas. Qatari airspace remains closed to scheduled commercial and cargo flights, while airspace in the UAE remains partially restricted. Airports in Dubai and Abu Dhabi are operating reduced schedules that prioritise repatriation, repositioning, and limited cargo flights as regulatory approvals are granted. Schedules remain highly fluid with frequent short-notice changes. International carriers continue to suspend many services across the region, and Asia–Europe long-haul flights are operating extended diversions, increasing flight times and reducing payload due to additional fuel requirements. As a result, cargo backlogs are building at alternative hubs such as Muscat and Jeddah. Customers should continue to expect longer lead times, short-notice cancellations, rolling delays, premium freight rates, and the introduction of additional war-risk surcharges.
Several airlines are operating limited or restricted services. Emirates SkyCargo is operating a reduced schedule from Dubai with priority given to backlog clearance and essential cargo. Etihad Cargo is operating limited cargo, repositioning, and repatriation flights from Abu Dhabi, while most standard commercial cargo services remain suspended. IAG Cargo continues to operate services between London and Riyadh and Jeddah, though flights to Abu Dhabi, Amman, Bahrain, Doha, Dubai, and Tel Aviv remain suspended. Oman Air Cargo continues to operate services from Muscat with rerouting and extended flight times, while acceptance of perishable cargo is restricted. FedEx has suspended flights to most Gulf states and has warned customers to expect delays and rerouting constraints. Qatar Airways Cargo is currently operating only limited humanitarian and essential flights, with regular schedules suspended. DHL Express has introduced an Elevated Risk Surcharge for shipments to Israel, Bahrain, Kuwait, and Qatar.
ਸਮੁੰਦਰੀ ਮਾਲ
Ocean freight operations remain heavily impacted as the Strait of Hormuz remains effectively closed, with ongoing attacks in the Gulf of Oman and off the UAE coast continuing to heighten security risks and delay vessel movements. Major ocean carriers have halted transits through the strait, suspended bookings, issued “End of Voyage” notices, and introduced emergency conflict and war-risk surcharges. Many services are being rerouted via the Cape of Good Hope, significantly extending transit times.
Port operations across the Gulf region are also being affected, though the situation varies by location and remains subject to rapid change. Several ports in the United Arab Emirates, including Jebel Ali, Hamriyah, Sharjah, and petroleum ports in Ruwais and Abu Dhabi, remain operational, while Fujairah is partially operational and Khor Fakkan is operating with elevated security risks due to reported GPS interference offshore. In Oman, the port of Salalah is currently closed following the drone strike, while Mina Al Fahal in Muscat and the port of Duqm remain operational. Bahrain’s Khalifa Bin Salman Port has temporarily suspended operations, while Kuwait’s Shuwaikh Port remains operational under heightened security conditions. Hamad Port in Doha is severely impacted due to carrier suspensions and Gulf transit disruption. In Saudi Arabia, Dammam and Jubail ports remain open but with restricted carrier bookings, while Jeddah Islamic Port and King Abdullah Port remain fully operational and are increasingly being used as contingency hubs. In Iraq, Umm Qasr remains operational, while Khor Al Zubair is partially impacted and Basrah oil terminals have suspended operations.
Ocean carriers continue to adjust their networks in response to the evolving situation. Maersk has suspended most bookings to and from several Gulf countries and introduced an Emergency Freight Increase for cargo moving to or from affected markets. CMA CGM continues to suspend Suez Canal transits and is rerouting vessels via the Cape of Good Hope while applying Emergency Conflict Surcharges to cargo moving to and from a number of Middle East and Red Sea countries. The carrier has also implemented bonded land-bridge corridors across Saudi Arabia, the UAE, Oman, Jordan, and Turkey, allowing cargo to move inland under customs bond from alternative ports such as Jeddah, Sohar, Khor Fakkan, and Fujairah before reconnecting with feeder networks across the Gulf region. MSC has suspended all Middle East bookings and continues to invoke “End of Voyage” clauses, discharging containers at alternative ports and applying additional surcharges. Hapag-Lloyd has introduced a War Risk Surcharge across Persian Gulf and Upper Gulf trades, while HMM, OOCL, ONE, and Evergreen continue to suspend services or reroute vessels away from the Strait of Hormuz.
ਰੋਡ ਮਾਲ
Road freight across the region remains operational along GCC road corridors, with cross-border trucking continuing between the UAE, Saudi Arabia, Kuwait, Oman, and other Gulf states. However, operations are increasingly affected by enhanced security inspections, intermittent diversions, tighter border controls, and congestion at key crossings. Demand for trucking capacity has increased sharply as cargo is redirected through alternative gateway ports such as Sohar, Khor Fakkan, Salalah, and Jeddah. Capacity shortages are now emerging, particularly in Oman and Saudi Arabia, resulting in reduced vehicle availability and the need for longer lead times.
In Europe, the sharp increase in global oil prices is already pushing diesel costs higher across the UK and the wider European market. In several countries diesel prices have reached their highest levels in more than 16 months, placing additional cost pressure on road transport operators. As a result, fuel surcharges are increasing and may begin moving to weekly adjustments rather than the traditional monthly revision cycle as energy market volatility continues.
We would also like to reiterate the importance of reviewing insurance arrangements with your underwriters to ensure that appropriate War and Strikes coverage is in place for cargo moving through affected areas. In cases where EV Cargo provides open cover insurance for UK customers, our underwriters have advised that from 12th March they are unable to provide war-risk coverage for shipments involving Bahrain, Djibouti, Kuwait, Oman, and Qatar, in addition to countries where such cover is already excluded.
As a global freight forwarding and logistics provider, we remain in close contact with airline and ocean carrier partners, port authorities, and regional representatives to maintain visibility of developments and support the continuity of cargo movements wherever possible. The safety of our employees, partners, and stakeholders remains our highest priority. We will continue to provide updates as the situation develops.
ਖਾਸ ਸ਼ਿਪਮੈਂਟਾਂ ਜਾਂ ਵਪਾਰਕ ਲੇਨਾਂ ਬਾਰੇ ਹੋਰ ਜਾਣਕਾਰੀ ਲਈ, ਕਿਰਪਾ ਕਰਕੇ ਆਪਣੀ ਆਮ ਕੰਪਨੀ ਦੇ ਪ੍ਰਤੀਨਿਧੀ ਨਾਲ ਸੰਪਰਕ ਕਰੋ।.
