Did You Know That…

…Iran attacks prompt Red Sea rethink as box shipping exits Strait of Hormuz

·         Carriers halt Hormuz transits and suspend Suez/Red Sea routings amid Iran conflict risks

·         About 170 containerships totalling 450,000 teu are stuck inside Hormuz; Middle East Gulf ports report shutdowns and disruptions

·         Freight impact depends on how long Hormuz stays constrained; some vessels may get exemptions

·         MSC, CMA CGM, Hapag Lloyd all order ships to seek safe shelter

A sudden security shock in the Middle East Gulf is forcing carriers into risk-driven reroutes and port standstills, once again testing the resilience of global shipping.

 

…The escalating U.S.–Iran conflict in 2026 is already disrupting one of the most critical maritime chokepoints in the world: the Strait of Hormuz. Because so much energy and cargo flows through this narrow passage, the effects on global shipping can be immediate and far-reaching. The immediate effects are rerouted ships, higher freight and insurance costs, oil price spikes, and potential supply chain disruptions worldwide. For any information about alternative routing you may contact our partners in the region: Jordex Global Marine Transportation in the UAE and GES Logistics in the KSA.Jordex Group Netherlands is also offering options like FCL shipment via Mersin, with oncarriage by truck to the various countries in the Gulf region.

 

…The world’s largest container carriers are rerouting ships to avoid the Persian Gulf, as a widening military conflict pitting the U.S.-Israeli alliance against Iran threatens to disrupt global merchandise trade.

MSC Mediterranean Shipping Co., the top container line, halted cargo bookings for the Middle East while No. 2 A.P. Moller-Maersk A/S and Hapag-Lloyd AG suspended all crossings in the Strait of Hormuz.

DP World earlier suspended operations at the Jebel Ali port in Dubai, according to a notice sent to customers and seen by Bloomberg on March 1. The company later said all four of its terminals were operational.

The logistics disruptions come as a major blow to the region, where business hubs such as Dubai rely on trade, tourism, transport and finance along with a reputation as a haven in a troubled neighborhood. Protracted snarls could reverberate across global supply chains, analysts warn.

…Gulf liner trades seize up as carriers retreat from Hormuz and wider disruption looms

·         Middle East Gulf service suspensions trigger widespread cargo diversions to alternative regional hubs

·         Analysts warn of mounting congestion and rising spot rates as carriers halt Hormuz transits

·         Dozens of boxships now sheltering in Middle East Gulf ports and anchorages underscore the scale of disruption

·         Many vehicle carriers engaged in liner trades from Asia are also being held up in the Gulf

Container lines are abandoning the Strait of Hormuz at speed, suspending Middle East Gulf services, halting bookings and diverting via the Cape of Good Hope as the regional security crisis escalates, a shift that is already triggering congestion risks, rate spikes and widespread disruption across Middle East and Asian supply chains.

 

…Carriers rush to impose war risk surcharges as Middle East crisis deepens

·         Container lines are rushing to slap war-risk surcharges on Middle East and Red Sea cargo as the conflict escalates

·         Hormuz transits are largely paused, with dozens of containerships waiting and booking visibility near zero

·         Cosco has also suspended boxship transits through the strait on safety grounds, despite speculation that China-linked vessels may be exempt

·         War-risk insurance is being withdrawn/repriced sharply, reinforcing the commercial and operational shutdown

With Hormuz effectively frozen, carriers are using surcharges to ration capacity and price the Middle East Gulf risk back into the box market.

 

…What We Know Now - Air Freight
Coordinated military strikes led to the immediate closure of sovereign airspace across Qatar, UAE, Saudi Arabia, and Kuwait, forcing the immediate suspension of operations to and via the Middle East for most airlines. Multiple major airlines have invoked Force Majeure, citing total airspace closure and immediate safety risks. Standard SLAs and transit time guarantees are currently suspended.
 

….The Iran war is a jolt to Dubai’s business model. Can the emirate keep people and investors coming? It seemed too good to be true. In a region plagued by conflict, Dubai had the air of a place apart. It drew the well-heeled and economically footloose, to live, work and make money, or to enjoy shopping and sun. It became a global transport hub, linking east and west. It has used its wealth to join the artificial-intelligence race. Key to it all was keeping out of regional conflicts. Not even Hamas’s attack on Israel in October 2023, the ensuing Gaza war or last year’s 12-day fight between Iran and Israel did much to knock confidence. Now Iran’s retaliation against the American and Israeli attacks that began on February 28th has hit the heart of all this—and shaken Dubai’s halo of safety. The Fairmont, a hotel on the Palm Jumeirah, a swanky man-made property development, was in flames on day one. An Amazon Web Services (AWS) data centre caught fire. The airport, home to Emirates, the world’s largest international airline, and essential to Dubai’s tourist trade, was damaged and flights were suspended. Jebel Ali, the emirate’s fast-growing port and transshipment hub, paused operations. Debris fell in residents’ backyards.

 

Dubai, like the rest of the United Arab Emirates (UAE), has so far been resilient; it is too soon to tell what the long-term effects of the war might be. But what until a few days ago was the stuff of small print has become reality. Though most foreign residents are sitting tight, some are leaving or planning to, if only for a while, via Oman or Saudi Arabia, where airspace has stayed open. America’s State Department has advised citizens to leave the region. Businesses, too, are staying put, but are making contingency plans. The question is whether the people and money that have fuelled Dubai’s rise as a global business hub will keep coming as they did before.

…Gold shipments stranded in Dubai as Iran war grounds flights. The mass cancellation of flights to and from bullion hub Dubai has left traders unable to move their metal, highlighting the potential bottlenecks to physical gold flows that could emerge from war in the Middle East.

…China’s grip on global container trade deepens as export routes diversify

·         China-linked cargo is spreading across more routes, but the shift is strengthening rather than weakening the country’s central role in global trade

·         Despite tariff pressure, exports remain resilient as assembly moves to Southeast Asia while core production stays in China

·         South America is becoming an extension of China’s supply chain

·         Rising throughput at China’s major ports shows its dominance is deepening

As carriers reroute around geopolitical flashpoints and manufacturers shift assembly to lower‑cost markets, China‑linked cargo is flowing through a wider network of regional hubs. Even so, surging volumes at China’s ports underline that diversification has reinforced its position at the centre of global container trad, to run the facilie.

 

…The government of Panama said Möller-Maersk and MSC were now operating two ports on the Panama Canal, after the country’s Supreme Court annulled the contract of CK Hutchison, a Hong Kong conglomerate to run the facilities.

 

… The board of our EAA Network is closely following the events in the Middle East. Announcements about the upcoming annual conference in Istanbul will be shared with all of you shortly.

 

...Most people are shorter and heavier than they claim. Studies suggest men tend to exaggerate their height more strongly than women and are also more likely to downplay their weight.

 

Wishing you all a very good rest of the week !

 

…This DYKT news bulletin will be published on the website as well, go to www.eaanetwork.com.