ALERT : Impact of Middle East Conflict on Global Logistics - What Freight Forwarders Need to Know

Escalating tensions in the Middle East are affecting maritime and air transport operations, including risks to navigation in and around the Strait of Hormuz and disruptions to regional airspace. FIATA is closely monitoring the rapidly evolving security situation and its implications for global supply chains, including impacts on insurance conditions, transit times, and freight costs worldwide.

Recent industry intelligence indicates that vessels in the Gulf region have altered courses, halted movements, or reversed direction amid heightened military activity and navigational risks. Some container ships preparing to transit the Strait of Hormuz have reportedly made U-turns following announcements of closure, signalling the potential for severe disruption and congestion across global shipping networks. It is expected that this could cause surges in transhipment volumes at alternative regional hubs, increasing the risk of port congestion and cascading delays across global liner schedules.

Given the region’s central role in energy flows and east-west trade corridors, further deterioration could lead to significant operational disruption across multiple transport modes.

Key operational impacts

Maritime transport is facing heightened security risks in the Gulf region and surrounding waters, prompting vessel diversions, suspended sailings, or halted transits. At the same time, war-risk insurance premiums and related surcharges are rising sharply, increasing the cost of shipping operations. If traffic is redirected away from affected areas, alternative hub ports in the Middle East and Asia may experience significant congestion, further disrupting schedules and capacity availability.

Air cargo operations are also affected by airspace restrictions and rerouting, which are increasing transit times and reducing schedule reliability. Longer flight paths are driving higher fuel consumption and operating costs, while capacity constraints may emerge as carriers adjust networks to avoid high-risk zones.

Across supply chains more broadly, disruptions to energy, petrochemical, and industrial flows are likely to have knock-on effects across manufacturing, retail, and food systems worldwide. Volatility in freight rates, equipment availability, and contractual performance may increase as operators adapt to rapidly changing conditions and uncertain transit environments.

Immediate actions for FIATA Members

The situation remains highly fluid, and FIATA continues to monitor the situation closely. Sudden operational changes, including vessel rerouting, transit suspensions, or airspace closures, may occur with little advance notice and could trigger cascading effects across global shipping and aviation networks.

In line with FIATA best practices on risk management, contractual clarity, and operational resilience, freight forwarders are strongly advised to take the following measures while maintaining heightened vigilance as the situation evolves:

1. Protect Personnel and Operations

• Monitor official government advice and carrier security notices
• Review business continuity and crisis management plans
• Maintain close contact with local agents and partners

2. Maintain Situational Awareness Across Shipments

• Identify shipments transiting or scheduled to transit affected regions
• Track cargo movements in real time and verify routing with carriers
• Prepare for sudden diversions, delays, or suspension of services
• Inform customers proactively of changing conditions

3. Review Contractual and Liability Positions

• Assess applicability of force majeure or exceptional circumstances clauses
• Clarify liability exposure for delays, deviations, or non-performance
• Ensure subcontractor terms provide equivalent protections
• Maintain comprehensive documentation to support claims or dispute resolution

4. Manage Insurance and Financial Risk

• Verify cargo and liability insurance coverage in conflict zones
• Confirm war-risk coverage, exclusions, and notification obligations
• Prepare for additional surcharges, deposits, or payment guarantees
• Review credit exposure where shipments may be delayed or cancelled

5. Ensure Transparent and Regular Customer Communication

• Provide frequent updates on routing changes and delays
• Clearly explain cost increases and surcharge drivers
• Encourage flexibility in delivery timelines and service expectations
• Advise customers on alternative transport solutions where feasible

6. Strengthen Supply Chain Flexibility and Multimodality

• Explore alternative ports, gateways, and routing options
• Consider multimodal solutions where appropriate
• Anticipate congestion at substitute hubs and transhipment points
• Coordinate closely with carriers, terminals, and inland operators

Further FIATA guidance 

Members are encouraged to consult relevant FIATA practical guidanceand tools to support risk mitigation during this period of disruption. In particular:

• The FIATA Best Practice Guide on Contract Management provides recommendations on managing contractual risk, performance obligations, force majeure considerations, and liability allocation in complex operational environments.
• The FIATA Best Practice Guide on Abandoned Goods outlines practical steps to prevent and manage situations where cargo cannot be delivered or collected.

Heightened geopolitical uncertainty, transport disruption, and financial stress on supply chain participants increase the risk of delayed clearance, refusal of cargo, or insolvency of contractual parties. In such situations, freight forwarders may face exposure to storage costs and demurrage and detention charges. Early due diligence, clear contractual arrangements, proactive communication, and rapid action are therefore essential to mitigate potential risks.

FIATA continues to monitor developments closely, engage with relevant authorities and international partners, and will provide additional updates as necessary. Should you have any questions, please contact legal@fiata.org.