Reminder: New NZ Customs/MPI Goods Levies to Take Effect - 1st April 2026

Previously advised parts of the central Middle Eastern air corridor remain largely closed as war continues through the Middle East. Tel Aviv, Damascus, Kuwait, Bahrain, Baghdad, Doha Tehran are all affected, as Qatar Airways, Etihad and Emirates continue with embargos in place. Many planes are at this stage still locked out of returning to the Middle East and grounded at airports around the world as the situation continues to develop. Global capacity is starting to feel the flow-on effect of the closed airspace through the Middle East, with alternative routing attempting to absorb the pressure. Please continue to expect delays as the airfreight and seafreight routing challenges continue to evolve. MFAT announced last week that exports to the Persian Gulf represent 3% of New Zealand's total exports. While not considered high, these are dominated by dairy into the UAE and Saudi Arabia; key markets for our whole milk powder and butter products. 22% of New Zealand's fertiliser is additionally imported from the region. As a result of the ongoing struggles to export oil through the Strait of Hormuz, fuel prices are starting to become affected on New Zealand shores. While New Zealand doesn't directly import crude oil from the Gulf region, Asian countries which we import refined product from have high dependencies on the Middle Eastern oil supply. We've had notice in the last few days of diesel prices expecting to jump by 40+ cents per litre; these have already increased by 20.6 cents or 11% in the last 28 days. We expect higher Bulker (fuel) costs to follow suit as shipping lines look to recover costs associated with new routing as well as their increasing fuel costs. If you have any questions, please reach out to the Hobbs Global Team.

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.