We continue to closely monitor the evolving military conflict in the Middle East and the ongoing disruption it is causing across global supply chains. The regional security situation remains highly volatile, with continued instability across the Gulf impacting both maritime and aviation networks.
Oil markets remain extremely volatile as geopolitical instability persists, with prices fluctuating around USD 100 per barrel. These conditions are contributing to increased operating costs across global logistics networks and driving continued volatility in fuel-related surcharges.
Cargo movements between the UK and Europe and key manufacturing regions including the Far East, Southeast Asia, and the Indian Subcontinent are experiencing significant disruption. Ocean carriers continue to reroute services around the Cape of Good Hope, resulting in schedule instability, service omissions, and extended transit times. Air freight capacity also remains reduced due to regional airspace restrictions and flight suspensions across key Gulf hubs. While some Gulf carriers are gradually restoring limited operations, many international airlines continue to suspend services, leading to longer flight times, congestion at alternative hubs, and growing cargo backlogs.
Regional authorities have introduced measures to support trade continuity. Dubai Customs has activated a temporary Green Corridor between Dubai and seaports in Oman for cargo moving via land routes, helping to facilitate alternative regional logistics flows.
Customers should continue to expect longer lead times, constrained capacity, rolling delays, and elevated freight rates across all modes as supply chains adapt to alternative gateways including Sohar, Khor Fakkan, Salalah, and Jeddah. Fuel and war-risk surcharges continue to increase and overall capacity remains volatile.
Air freight operations remain disrupted as airspace restrictions, military activity, and operational limitations continue to impact schedules. Airspace in the UAE, Saudi Arabia, and Oman remains open with limited flight operations, while Kuwait airspace remains restricted and several regional routes continue to be suspended. Airlines including Emirates SkyCargo, Etihad Cargo, and Oman Air are operating reduced schedules, while other carriers have suspended services or introduced surcharges due to elevated operational risk.
Ocean freight is also heavily impacted as the Strait of Hormuz remains effectively closed, with ongoing security concerns in the Gulf of Oman and off the UAE coast delaying vessel movements. Major carriers have halted transits through the strait, suspended bookings, introduced emergency conflict surcharges, and continue to reroute vessels via the Cape of Good Hope. Several Gulf ports remain operational, including Jebel Ali, Jeddah, and King Abdullah Port, while Salalah in Oman remains closed following recent attacks.
Road freight across GCC corridors continues to operate but is experiencing increasing pressure due to enhanced security checks, congestion, and growing demand for alternative land routes. Competition for trucks, drivers, and fuel is intensifying, affecting both availability and costs.
In Europe, rising global oil prices are increasing diesel costs across the UK and wider European market. Fuel surcharges are rising and may move to weekly adjustments as energy market volatility continues.
We would also like to reiterate the importance of reviewing insurance arrangements with underwriters to ensure appropriate War and Strikes coverage is in place for cargo moving through affected areas. Where EV Cargo provides open cover insurance for UK customers, underwriters have advised that war-risk coverage is currently unavailable for shipments involving Bahrain, Djibouti, Kuwait, Oman, and Qatar.
As a global freight forwarding and logistics provider, we remain in close contact with 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.
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