Disruptions in Middle East supply chains

Following an escalation in conflict involving the United States, Israel, and Iran over the weekend, The U-Freight Group is coordinating with our partners in efforts to mitigate some of the severe supply chain disruptions that are now present in the Middle East.

The renewed instability has dashed hopes for a return to normality in the Red Sea, causing carriers to halt routes, reroute vessels around the Cape of Good Hope, and implement emergency conflict surcharges. Whilst large numbers of flights have been cancelled and much of the region’s airspace has been closed.

The key impacts on freight and logistics can be summarised as follows:

Red Sea and Suez Canal rerouting: Major shipping lines (e.g., Maersk, Hapag-Lloyd, CMA CGM) are suspending or renewing the bypassing of the Red Sea/Suez Canal route that they had restarted due to renewed security threats. This adds significant transit time — up to 10–14 days — as ships are diverted around the Cape of Good Hope.

Strait of Hormuz disruptions: Shipping lines have suspended or heavily restricted cargo movements into the Persian Gulf, directly impacting key logistics hubs like Dubai’s Jebel Ali port.

Surging costs and surcharges: Carriers are introducing war-risk surcharges as spot rates for cargo are expected to rise.

Air freight and airspace disruptions: Widespread airspace closures in the Middle East have led to suspended, delayed, or rerouted flights, creating bottlenecks for air cargo.

The outlook is not good. Analysts warn that the “weaponisation of trade” will likely lead to higher freight rates and constrained capacity. 

Companies should anticipate longer delivery times, consider alternative routing, and secure capacity early.

As the situation remains uncertain, further adjustments to flight schedules and network coverage may occur at short notice.

The current disruption is expected to have broader implications beyond the Middle East region:

UFL’s air and ocean freight teams are in close and continuous dialogue with our partners to assess the impact and maintain service continuity. We will communicate any material updates on affected shipments as soon as confirmed.

Customers with cargo already in transit or with upcoming shipments to or from the region are encouraged to contact their local UFL representative for guidance tailored to their specific movements.

Road freight operations across the region continue, with services largely maintained at this stage. However, customers should anticipate potential border congestion, customs processing delays, and transit time variability as conditions evolve. Increased reliance on alternative routing and heightened security controls may lead to temporary schedule adjustments and cost fluctuations. The situation remains dynamic and is being monitored closely to ensure rapid response and controlled execution.

We will continue to issue updates as the situation evolves, but for more information about our contingency plans please contact us.

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