Escalating Middle East Conflict Impacts Logistics Services
The sharp escalation of military activity in the Middle East is already sending shockwaves through global logistics networks, disrupting both air and ocean freight operations within the region and beyond.
Ongoing instability is likely to place further pressure on supply chains and increase costs. Below is a summary of the current situation, which remains highly fluid.
Air Freight
The majority of Middle Eastern airspace has been closed, significantly impacting flight operations to and from the region.
Airspace restrictions are also disrupting long-haul services that typically transit the region, resulting in cancellations, diversions, congestion, and reduced global air freight capacity.
Several airlines have suspended services across key hubs, primarily affecting routes serving Bahrain, Iran, Israel, Iraq, Jordan, Kuwait, Lebanon, Qatar, Saudi Arabia, and the United Arab Emirates.
Operational backlogs and delays are expected to continue while restrictions remain in place.
Air freight rates — including services connecting Asia — are already rising sharply.
Additional surcharges, including war risk and fuel surcharges, may be imposed across many global air freight services.
Ocean Freight
Many carriers have cancelled services transiting the Strait of Hormuz following reported Iranian attacks on vessels, with delays expected for cargo already in transit. Some carriers have also suspended services to and from the wider Middle East region.
Additional charges have already been applied to shipments moving to and from the Middle East, including war risk surcharges and general rate increases (GRIs).
Carriers that had recently resumed limited transits via the Suez Canal have announced renewed diversions around Africa.
Knock-on effects may impact services and rates on adjacent trade lanes, particularly Asia–Europe routes.
Global ocean freight rates may rise further, especially if the conflict persists and fuel prices continue to increase.
Killick Martin is closely monitoring developments, which remain highly dynamic, and will continue working proactively to mitigate disruption wherever possible.
