Industry News

ADVISORY UPDATE – MIDDLE EAST CONFLICT IMPACTING GLOBAL SHIPPING

Further to our advisory earlier this week regarding the escalating conflict in the Middle East, the situation has continued to deteriorate and is now creating broader disruption across global shipping and air freight networks.

Strait of Hormuz Situation Escalates

The Strait of Hormuz, one of the world’s most critical shipping corridor, is now being treated by many carriers as effectively closed for commercial shipping following several tanker attacks in early March.

As a result:

• Major carriers including MSC, Maersk, CMA CGM and Hapag-Lloyd have suspended bookings or diverted vessels away from the region
• War-risk insurance has been withdrawn in some cases, significantly increasing operating costs
• Some shipping services are now rerouting around the Cape of Good Hope, adding additional transit time to global trade lanes

Port and Regional Operational Impacts

Several ports across the Gulf are also experiencing operational disruptions or heightened security measures, including:

• Temporary maritime suspensions in Qatar
• Security disruptions near Duqm (Oman) and Bahrain
• GPS signal interference reported in parts of the Gulf
• Some Middle East ports limiting certain cargo types

Additional Industry Impacts

• Emergency contingency surcharges are beginning to be introduced by some carriers
• Dangerous goods bookings into parts of the Middle East have been suspended
• Ongoing airspace restrictions are continuing to disrupt global air freight capacity

What This Means for Supply Chains and Australia?

Even for shipments not moving directly to the Middle East, the global shipping network may experience:

• Longer transit times due to vessel rerouting on some global routes
• Increased freight rates due to fuel costs and war-risk surcharges
• Reduced Air Cargo Capacity
• Schedule volatility and capacity constraints with potential equipment shortages

TCF continues to monitor developments closely with our partners located in the effected region and will provide further updates as the situation evolves.

Please contact your usual TCF representative should you require shipment specific advice or assistance.