Air and Ocean Freight Markets Tighten Amid Ongoing Middle East Instability
Ongoing conflict in the Middle East is driving significant disruption across global air and ocean freight markets, tightening capacity, increasing costs, and forcing widespread cargo rerouting.
Air Freight: Capacity Recovery Amid Routing Constraints
According to Freightos, Gulf carriers continue a gradual recovery of scheduled services. Qatar Airways began a partial reopening this week, operating approximately 45 weekly freighter flights alongside select passenger services as Qatari airspace starts to reopen. The UAE reopened its airspace shortly after the conflict began, with Emirates SkyCargo announcing more than 150 scheduled freighter flights this week.
Despite this recovery, shippers moving air cargo between Asia and Europe are facing sharp increases in rates and fuel surcharges. Approximately 30% of Asia-Europe air cargo typically transits through the Middle East, and ongoing disruptions tied to the U.S. and Iran conflict have significantly constrained routing options. As carriers reroute around the region, remaining lanes are experiencing a pronounced capacity squeeze. There are also reports of Asia‑origin cargo to Europe transiting via the U.S., a shift that could further pressure U.S. export capacity and drive rates higher.
Ocean Freight: Diversions and Port Congestion Intensify
On the ocean side, continued disruptions across Middle East ports have prompted carriers to divert Asia‑origin cargo bound for the region into Indian ports for temporary discharge. Industry sources estimate that approximately 40,000-50,000 TEUs have been discharged into India to date, with Nhava Sheva (JNPA) handling a significant portion of the overflow.
To reposition these containers, CMA finalized plans to operate three Middle East shuttle sailings from West India ports (Nhava Sheva and Mundra) calling Sohar and Fujairah over the coming week. Hapag‑Lloyd, however, has reinforced its pause on accepting bookings to and from the Middle East, citing ongoing landside operational risks in a war zone (JOC).
Pressure on Alternative Gulf Gateways
To complete final delivery, carriers are increasingly relying on alternative Persian Gulf gateways, primarily Sohar (Oman) and Fujairah and Khor Fakkan (UAE). These contingency ports are now experiencing severe strain, including congestion, limited transshipment capacity, and restricted refrigerated equipment availability.
Khor Fakkan, in particular, is facing extended berthing delays of up to 10-12 days and restrictions on large transshipment volumes. In some instances, vessels have been denied discharge or diverted altogether due to congestion and inland transportation constraints. Importers are also being required to clear cargo within two days of discharge, heightening the risk of port storage costs and demurrage charges.
What Shippers Should Expect
Shippers should plan for continued delays, elevated risk of congestion‑related accessorial charges, and potential limitations for temperature‑controlled cargo until regional port and airspace conditions stabilize.
Adding to cost pressures, the Federal Maritime Commission (FMC) has rejected separate requests from four ocean carriers seeking to waive the 30‑day notice requirement for war‑related surcharges. As a result, most carriers’ Emergency Fuel Surcharges for FMC‑regulated trades are expected to take effect in mid‑April.
As always, eShipping will continue to monitor and communicate immediate steps to protect service continuity as the situation continues to evolve. Please contact your eShipping Account Manager with questions or contact our team HERE.