Operational Update: Continued Middle East Shipping Impacts

Air freight impacts

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Air cargo movement continues to experience the most severe operational constraints. Major regional air hubs are closed or operating under severe restrictions, drastically limiting passenger and belly-cargo capacity.

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• UAE hubs (DXB, DWC, AUH) are effectively closed to normal passenger operations due to airspace shutdown conditions.
• Qatar (DOH) remains closed with full suspension of Qatar Airways operations.
• Israel (TLV) remains closed to international air traffic.
• Iranian airspace is heavily restricted with widespread cancellations.
• Iraq, Kuwait, Bahrain, and Jordan are operating under extensive overflight limitations, restricting routing flexibility.
• High-risk air corridors across Saudi Arabia, Jordan, and Lebanon are causing continued rerouting and schedule instability.

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OPERATIONAL & MARKET IMPACTS

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Regional air freight capacity has significantly tightened with reduced cargo lift availability across key Middle East hubs. Ongoing pricing volatility is being directly driven by constrained supply and network disruptions and instability.

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As carriers reroute through alternative hubs outside of the conflict area, transit times have increased, adding additional layers of complexity to already-strained airline schedules.

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Ocean freight impacts

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Ocean freight remains partially functional but structurally strained. Maritime trade movement through the Strait of Hormuz remains severely disrupted, forcing widespread vessel rerouting and congestion at alternative GCC ports.

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GCC Port Status

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• UAE ports (Jebel Ali, Khalifa, Fujairah, Khor Fakkan, Sharjah, Ruwais, Abu Dhabi, and Ras Al Khaimah) remain operational.
• Fujairah terminals (including ADNOC and Vopak facilities) are functioning normally.
• Kuwait ports (Shuaiba, Mina Al Ahmadi, and Mina Al Zour) operating at Security Level 2 with limited constraints and available bunkering services.
• Oman, Qatar (non-air operations), and Saudi Arabia (Jeddah) remain operational

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Strait of Hormuz Impact

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A blockade scenario continues to disrupt normal vessel passage, resulting in congestion at alternative ports, increased berth waiting times, rising demurrage and detention exposure, and increased freight rates across containerized and bulk shipment moves.

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Containerships are being diverted to:

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• Fujairah
• Khorfakkan
• Sohar
• Jeddah

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OPERATIONAL & MARKET IMPACTS

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Ocean freight operations remain theoretically functional across key regional ports, but overall throughput is increasingly limited by heavy diversion to other ports.

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As cargo is rerouted from disrupted ports, congestion at alternative hubs is intensifying and creating bottlenecks, ultimately straining handling capacity and slowing dwell times. This has significantly impacted vessel scheduling reliability with rippling effects that are causing delays and reduced predictability.

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Ground freight impacts

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Ground logistics networks are functioning but increasingly burdened by rerouted cargo, port congestion, and cross-border inefficiencies.

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• Cross-border trucking routes are experiencing delays linked to port congestion and customs backlogs with increased security checks and routing variability.
• Internal GCC distribution remains active but is under strain from overflow cargo from maritime diversions and reduced air freight intake.
• Fuel pricing instability is contributing to higher inland transport costs across the region.

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OPERATIONAL & MARKET IMPACTS

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Ground transportation is operating as a buffer layer but is increasingly stressed with ongoing capacity issues.

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What you need to know

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Current outlook

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• Continued uncertainty in the Strait of Hormuz will keep maritime routing fragmented and cost-inefficient
• GCC region ports will continue taking on diverted volumes with congestion likely to persist or intensify at key hubs
• Air freight capacity is expected to remain essentially reduced until regional airspace restrictions ease
• Multimodal routing strategies are currently the primary workaround

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What we recommend

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To maintain supply chain continuity:

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• Implement indirect routing strategies through alternative gateways or multimodal transport options
• Build extended lead times with a minimum of 3-5 additional days as a buffer across all modes
• Secure capacity in advance, particularly for ground and contingency hubs
• Segment critical cargo and prioritize guaranteed lift options
• Maintain direct communication channels, as standard tracking visibility is unreliable

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ICAT is continuing to keep a close eye on the Middle East disruptions. We will continue to provide updates as new developments arise.

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