Middle East Conflict - Impact on Global Freight Networks

Recent escalation in the Middle East has begun affecting global shipping and air cargo networks. The primary disruption centres around the Strait of Hormuz and the wider Gulf region, alongside significant airspace closures across the Middle East. These developments are creating operational disruptions, increased insurance costs, and network adjustments across both ocean and air freight services.

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What to expect

• Increased freight costs due to war-risk insurance and bunker volatility.
• Schedule disruption on services connected to the Middle East and Suez routing.
• Potential delays across global air cargo networks due to airspace closures.
• Network adjustments as carriers reposition vessels and aircraft.

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Current Freight Network Risk Overview

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Route disruptions and rerouting

Container carriers are implementing precautionary operational changes in the Gulf region:

• Some carriers are suspending Gulf bookings, with certain operators stopping cargo acceptance entirely.
• Others have restricted specific cargo types such as reefers and hazardous goods.
• If the conflict escalates, broader suspension of Gulf services is likely.
• OOCL has instructed vessels to remain 200 nautical miles from the Strait of Hormuz.
• Air cargo networks are also experiencing disruption.
• Airports across the UAE including Dubai (DXB), Al Maktoum (DWC) and Abu Dhabi (AUH), along with Doha (DOH) in Qatar, have temporarily suspended flights.
• Airlines have cancelled services, disrupting air freight moving from Europe via Middle East hubs.

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Shipping Line Surcharges

Maersk – Emergency Freight Increase (EFI)

• Security escalation near the Strait of Hormuz.
• Increased operational risk for vessels and crews.
• Potential rerouting and longer voyages.
• Higher bunker and operating costs.

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CMA CGM – Emergency Conflict Surcharge (ECS)

• Military escalation affecting Gulf shipping lanes.
• Rising war-risk insurance costs.
• Additional vessel security measures.
• Network disruption across Middle East services.

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Hapag-Lloyd – War Risk Surcharge (WRS)

• Elevated geopolitical risk in the Persian Gulf.
• Sharp increases in war-risk insurance premiums.
• Additional safety protocols for vessels.

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MSC – Contingency / Diversion Surcharge

• Suspension of some Gulf bookings.
• Vessel diversions to alternative discharge ports.
• Additional handling and operational costs.
• Increased insurance exposure for Gulf voyages.

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Actions

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If you already ship with Explorate, your representative will already be monitoring shipments for potential disruption.

• Book shipments as early as possible where flexibility exists.
• For customers shipping more than 1,000 TEU annually, engage Explorate with your requirements for the upcoming year to secure coverage and pricing.

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We will continue monitoring the situation and send further updates as they arise.

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