Middle East Crisis: Guidance for Shippers

With conditions in the Middle East changing by the hour, shippers should be prepared for service adjustments, cost volatility, and longer transit times.

Here are the important supply chain impacts and what shippers can do now to protect lead times and keep freight moving.

Key Chokepoints Art Disrupted

Strait of Hormuz closure: Iran’s Revolutionary Guard has issued threats and attacks have effectively halted traffic through the Strait of Hormuz, a critical artery for about 20% of global oil shipments. This is elevating global energy and freight volatility.

Red Sea/Suez Canal: Although some carriers had started to return to the Red Sea transits earlier this year, the current escalation renewed rerouting around the Cape of Good Hope, adding significant distance and time to Asia-Europe and Asia-U.S. lanes.

Shipping Services Changing Rapidly: Many container lines are suspending services or bookings into the Gulf and Middle East, especially UAE, Qatar, Kuwait, Iraq, and Saudi Arabia.

Costs Increasing: Some major carriers are introducing War Risk and Conflict surcharges on affected trades. Freight rates are spiking. Insurance premiums are surging or being cancelled.

Air Cargo Networks Are Also Affected: Air carriers are bypassing traditional Gulf hub routings, tightening capacity and increasing congestion and rates along alternative routes.

Strategic Actions for Shippers

In a fast-moving situation like this, Worldwide Logistics Group can help you stay ahead of the disruption.

Here’s how we support our customers:

Proactive Routing Adjustments: We continuously evaluate carrier networks and alternative trade lanes to minimize delays and avoid risk.

Cost Mitigation Strategies: Although rate increases and emergency surcharges are outside of our control, we advocate on your behalf with carriers and continuously explore routing, consolidation, and modal strategies designed to reduce overall cost exposure.

Customs and Compliance Support: Our brokerage team and global trade consultants monitor regulatory changes to stay ahead of shifts and help minimize clearance delays and maintain compliance.

Inventory and Supply Chain Planning: We help reassess lead times, safety stock levels, and distribution strategies to maintain continuity.

Contact your Worldwide Logistics representative for guidance specific to your needs.