Industry News

ADVISORY UPDATE – MIDDLE EAST CONFLICT IMPACTING GLOBAL SHIPPING

Please find a further update on the Middle East logistics environment following the latest advisory from our regional partners (07 April).

While the overall situation remains volatile, there have been several notable developments since our last update, alongside continued disruption across key trade lanes.

Key changes since last update:

• Khor Fakkan Port (UAE): Operations have now partially resumed following earlier suspension, with gradual normalization expected. However, restrictions remain in place on exports and empty container handling, and additional documentation/screening requirements are impacting flow.
• Carrier behaviour: There is a clearer shift away from direct Upper Gulf calls, with increased reliance on alternative regional hubs and indirect routing.
• Cargo prioritization: Essential cargo (food, medical, perishables) is being prioritized, while dry cargo remains restricted and dangerous/OOG cargo is largely suspended.
• Alternative corridors stabilising: The Saudi land bridge (via Jeddah / King Abdullah Port) is now the most stable and scalable option, with Oman corridors seeing increased utilization.
• Additional surcharges introduced: New cost elements such as Transit Disruption Surcharges (TDS) are now being applied alongside fuel and war risk adjustments.
• Equipment constraints emerging: Empty container return disruptions and repositioning challenges are becoming a more material issue across the region.

Current operating environment:

• Ocean freight remains heavily constrained, with booking acceptance on a case-by-case basis and limited direct services into the Upper Gulf.
• Air freight capacity continues to be volatile, with routing adjustments driven by airspace conditions and rising costs.
• Transit times are extended and less predictable across all modes, with booking confirmations subject to carrier approval.
• Multimodal and land-bridge solutions are increasingly required to maintain supply chain continuity.

What this means for you:

The market is showing early signs of partial stabilization in select gateways; however, disruption remains significant and operational complexity has increased.

We recommend planning shipments further in advance with additional lead time, maintaining flexibility accross gateways and carriers and engaging early with TCF on any critical or time sensitive shipments.

TCF continues to work closely with our partners to secure capacity, optimize routing, and manage cost exposure wherever possible. We will keep you informed as conditions evolve.

If you would like to review specific shipments or discuss mitigation strategies, please reach out to your TCF contact.