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Impact on Global Freight Due to Middle East Geopolitical Tensions
Impact on Global Freight Due to Middle East Geopolitical Tensions
What You Need to Know
Ongoing restrictions and geopolitical developments in the Middle East are impacting global trade routes. While most disruptions are concentrated in the Red Sea, the Suez Canal, and the Persian Gulf, these shifts have a cascading effect that influences supply chains around the world.
Ocean Freight Impact
The vessel blockage in the Strait of Hormuz has led to several ocean carriers to pause sailings, leading to rerouting and delays. Major ocean carriers, including MSC, Maersk, CMA CGM, and Hapag-Lloyd are implementing a combination of:
- War risk and emergency conflict surcharges
- Select booking suspensions for Middle East cargo
- Rerouting of vessels away from the Red Sea/Suez Canal
- Diversions via the Cape of Good Hope
Marine insurers are also reassessing risk exposure in affected zones, and certain vessels remain delayed within Gulf trade lanes.
Air Freight Impact
Many carriers have suspended service entirely or reduced their operations in the region, while most European carriers servicing the Far East are working on reduced schedule and limited space capability.
These suspensions and adjustments are impacting global capacity, with effects being felt far beyond the Middle East. Carriers are adjusting scheduling, which may result in rate changes, extended transit times, space constraints and cargo rollovers.
Delmar Recommendations
For urgent shipments, we strongly recommend early bookings and close, proactive coordination with your local Delmar representative to review the most reliable routing and capacity options available.
Delmar is closely monitoring the developing situation and will provide pertinent update related to your shipments as they unfold.
For additional information and assistance, please contact your local Delmar Representative.