Middle East Tensions Impact Capacity and Fuel Costs

Further to our previous update, ongoing restrictions and geopolitical developments in the Middle East continue to impact global trade routes. While most disruptions are concentrated in the Red Sea, the Suez Canal, and the Persian Gulf, these shifts continue to create a cascading effect across global supply chains.   

As a result, fuel procurement costs have risen significantly across regions, trade lanes, modes of transportation, impacting overall cost of transportation. 

 

Ocean Freight Impact 

With many ocean freight services disrupted, operations are currently subject to multiple constraints and contingency measures, and the duration of these conditions remains uncertain. 
 
To continue providing reliable and sustainable services under these exceptional circumstances, ocean carriers have begun implementing Emergency Fuel Surcharges (EFS). Implementation dates and amounts will be trade lane specific, with amounts varying and subject to change. 

 

Air Freight Impact  

Many carriers have suspended service entirely or reduced operations in the region, while most European carriers servicing the Far East are operating on reduced schedules with limited space.  

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.   

 

Ground Transportation Impact 

The conflict is pushing transportation costs upward and adding pressure to an already strained North American trucking market. Shippers may see higher rates, increased surcharges, and occasional delays as carriers manage tighter networks and reduced flexibility. 

To navigate these conditions, Delmar recommends adding lead time where possible, considering alternative modes, and securing urgent shipments early. Close coordination with your Delmar representative remains the best way to ensure reliable routing and available capacity. 

 

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. 

Delmar is closely monitoring the developing situation and will provide relevant updates as they become available. 

For additional information and assistance, please contact your local Delmar Representative.