Crisis in the Middle East

The current situation in the Middle East has resulted in several changes to supply chain in the last few days.

Emirates, Etihad and Qatar services are heavily affected following the closure to airspace through the Middle East.

Many flights have been cancelled, with airlines suspending flights to/from major international hubs including Doha, Tel Aviv & Dubai as the situation continues to evolve.

Several major Gulf gateways used to connect cargo between Oceania, Europe and Asia are affected, with flow on effects to the wider global airfreight network. Capacity and transit times will be affected.

Delays should be expected across trade lanes as airlines work to establish new routing, and rerouting current capacity. Additional time will need to be factored in for urgent shipments.

It is expected that increased fuel charges will follow as the result of longer routes to avoid Middle Eastern & Iranian airspace.

While the current disruption is focused on airfreight networks, it is expected that seafreight networks may experience potential flow-on effects as the situation evolves.

Several shipping lines have announced suspensions to vessels transiting through the Strait of Hormuz as an immediate protective action, with vessels currently inside the Persian Gulf instructed to seek protection immediately.

There is estimated to be more than 170 vessels (container & tankers) currently inside the Strait now facing restrictions, with over 200 more anchored outside the Strait.

The Strait of Hormuz acts as a corridor to around a fifth of the world's oil supply. Prolonged restrictions may result in global fuel market adjustments.

If you have any freight moving to/from this part of the world, we suggest getting in contact as early as possible so adequate time can be spent exploring routing to ensure freight moves as efficiently as possible.

As always, please reach out to the Hobbs Global Team if you have any questions.