Global logistics face major disruption as Middle East crisis escalates
Image by Gerd Altmann from Pixabay
  • The swift escalation of conflict following U.S. and Israeli strikes on Iran has sent shockwaves through the global logistics industry, triggering a near-total paralysis of key Middle Eastern transit hubs
  • Air travel and freight severely hampered with the closure or limited operations in such major hubs as Dubai, Abu Dhabi and Doha
  • The biggest shipping lines have suspended transits to the Gulf due to extreme security risk in the Strait of Hormuz
  • The International Transport Workers’ Federation said the Strait of Hormuz and surrounding waters have been designated High Risk Area, which means enhanced protection measures for seafarers are activated, including the right to refuse sail into the area
  • As of March 3, instability was widening in the region as Israel has also attacked Lebanon, the US Secretary of State Marco Rubio telling media that more hits will come to Iran, and Iran strategically firing back at Israel and US-linked infrastructures across the Gulf states

The swift escalation of conflict following U.S. and Israeli strikes on Iran has sent shockwaves through the global logistics industry, triggering a near-total paralysis of key Middle Eastern transit hubs. The month opened with the sea and air cargo sectors facing their most significant disruption in years.

Air Cargo and Airport Closures

Global air travel and freight have been severely hampered by widespread airspace closures across Iran, Iraq, Jordan, Israel, and several Gulf nations including the UAE, Qatar, and Kuwait.

  • Airport Status:Major international hubs, including the Dubai International, Abu Dhabi, and Doha, reported temporary operational halts following retaliatory strikes. As of March 2, limited services have resumed as governments and airlines rush to start moving stranded passengers
  • Airline Advisories:Emirates SkyCargo and Qatar Airways Cargo have implemented temporary restrictions on new bookings. Philippine Airlines (PAL) and Cebu Pacific have already canceled or diverted multiple flights to Riyadh, Dubai, and Doha, citing safety concerns. Other carriers like Lufthansa, Air France, and British Airways have suspended Middle East services until at least mid-March.

READ: US, Israel strike on Iran disrupts aviation landscape

Maritime Crisis and the Strait of Hormuz

The maritime situation is equally dire. In the Strait of Hormuz, traffic has ground to a near-standstill. 

International media and industry reports indicate that over 700 vessels are currently anchored or drifting in the Gulf of Oman as Iran’s Revolutionary Guard warned that no tankers would be allowed through the waterway.

  • Shipping Line Suspensions:The world’s largest container lines — MSC, Maersk, CMA CGM, and Hapag-Lloyd — have suspended transits through the Strait and the Red Sea. MSC has gone as far as pausing all new bookings for Middle Eastern cargo.
  • Rerouting & Surcharges:Most vessels are being diverted around Africa’s Cape of Good Hope, adding 10–14 days to transit times. In response, providers have introduced “War Risk Surcharges” ranging from $1,500 to $4,000 per container.

READ: Major shipping lines suspend transits to/from Middle East

The International Transport Workers’ Federation (ITF) and the Joint Negotiating Group – as social partners of the International Bargaining Forum (IBF) – announced on March 2 the designation of the Strait of Hormuz and surrounding waters as a High Risk Area.

The designation activates enhanced protection measures for IBF-covered seafarers operating in or near the affected waters.

Further, the IBF Warlike Operations Area Committee agreed to include into the existing conditions for the designated High Risk Area, the seafarers’ right to refuse to sail into the area.

“Seafarers are civilian workers. They must never be exposed to military risk or used as leverage in geopolitical conflict. Their safety must come before all commercial considerations,” said ITF, a federation that represents about 16.5 million transport workers worldwide.

READ: PH flag vessels told to exercise full caution amid Middle East conflict

Philippine Impact

In the Philippines, importers and exporters are bracing for the additional financial costs as local freight forwarders and the New NAIA Infrastructure Corp., operator of the country’s main gateway in Manila, warned of significant delays and surging freight rates. 

READ: Business groups ask gov’t to help minimize Middle East crisis impact

Cargo service providers like FedEx have already suspended regional operations, advising customers to prepare for extended lead times as the industry navigates this volatile scenario.

“The safety and well-being of our team members is our highest priority. As a result, pickup and delivery services in Bahrain, Kuwait, Iraq, Qatar and United Arab Emirates have been temporarily suspended until further notice. Shipments to and from other markets throughout the region may experience extended transit times,” FedEx said in its latest service alert.

As of March 3, instability was widening in the region as Israel has also attacked Lebanon, the US Secretary of State Marco Rubio told media that more hits will come to Iran, and Iran strategically firing back at Israel and US-linked infrastructures across the Gulf states.

 

 

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