Since the military escalation between the United States, Israel, and Iran on 28 February 2026, the situation has remained extremely fluid. Our primary focus is the safety of personnel and the security of your cargo. Below is a summary of the current impact on global trade lanes as per 10 March 2026.

Strait of Hormuz Disruption

• The Strait of Hormuz has been significantly impacted due to the ongoing military escalation in the region.
• Vessel traffic has dropped sharply, with many ships avoiding the strait and more than 150 tankers reportedly waiting outside the Gulf pending security clearance.
• Several vessels have reportedly been affected by missile or drone incidents near the Gulf of Oman and the Strait of Hormuz.

Suspension of Shipping Services

• Major global carriers such as Maersk, CMA CGM, MSC, and Hapag-Lloyd have temporarily suspended or restricted transit through certain Gulf routes due to security concerns.

Rerouting and Transit Delays

• Some cargo is being rerouted via the Cape of Good Hope to avoid the conflict zone.
• Regional alternative ports being considered include:

- Khorfakkan (UAE)
- Sohar, Muscat, Salalah, and Duqm (Oman)
- Jeddah (Saudi Arabia)

• These changes may result in additional transit times of approximately 10–20 days, along with significantly higher freight costs.

Port and Infrastructure Impact

• Certain regional port operations have experienced temporary disruptions or precautionary suspensions, including security alerts at Jebel Ali Port.
• Missile and drone incidents have also affected maritime activity in nearby Gulf states, including Bahrain and Oman.

Logistics and Cost Impact

• Rising oil prices and increased war-risk insurance premiums are pushing up logistics costs across the GCC region.
• Approximately 20% of global oil trade normally passes through the Strait of Hormuz, making the current disruption highly significant for global shipping and logistics.

GCC Trade and Import Risks

• GCC countries are highly dependent on imports, with over 70% of food imports entering through Gulf shipping routes, increasing the risk of supply chain disruptions if the situation continues.

Current Logistics Outlook

• Freight rates expected to increase significantly
• Vessel schedules remain highly unstable
• War-risk insurance surcharges increasing
• Potential cargo delays of 2–3 weeks or more

Client Advisory

• Where feasible, consider routing cargo through alternative ports such as Khorfakkan (UAE), Sohar, Muscat, Salalah, Duqm (Oman), or Jeddah (KSA).
• Clients may also consider holding cargo at origin ports temporarily until the situation around the Strait of Hormuz stabilizes.

We are actively monitoring all shipments currently in transit. Our teams are working to secure alternative routings - including sea-air solutions and rail-land bridges where viable - to mitigate these disruptions.

Please anticipate extended lead times and additional cost assessments for all shipments transiting the Middle East. We recommend reviewing your inventory levels and forecasting requirements for the coming quarter immediately.

CONTACT US

Please contact our experts for further advice. We will keep you closely informed.

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