Global shipping networks face severe as escalating Middle East conflict forces major carriers to abandon critical trade routes. MSC, Maersk, CMA CGM and Hapag-Lloyd have suspended services, imposed emergency surcharges and rerouted vessels around Africa-adding weeks to transit times and absorbing vital capacity.
The crisis deepens existing supply chain chaos that began with Houthi attacks in December 2023. Now, with military strikes targeting Iran and retaliatory actions across the Gulf, shipping and air cargo networks face their most severe in decades.
Carriers Abandon the Persian Gulf
MSC suspended all cargo bookings to the Middle East until further notice on Sunday. Maersk paused Red Sea and Suez Canal sailings entirely, rerouting vessels around the Cape of Good Hope in South Africa. Japanese shipping giants Nippon Yusen KK, Kawasaki Kisen Kaisha and Mitsui O.S.K. Line halted Persian Gulf operations.
Hapag-Lloyd suspended all transits through the Strait of Hormuz on Saturday, citing the dynamic security situation. The company announced a war risk surcharge of $1,500 per standard container and $3,500 per reefer container, effective March 2, 2026.
“The dynamic situation around the Strait of Hormuz and the necessary operational adjustments are causing disruptions throughout the network, which will impact schedules and equipment supply.”
– Hapag-Lloyd statement
CMA CGM imposed an Emergency Conflict Surcharge ranging from $2,000 to $4,000 per container on shipments to and from Gulf and Red Sea countries, effective Monday. The surcharge applies to cargo moving through some of the world’s most critical trade corridors.
War Risk Insurance Evaporates
Marine insurers including the London P&I Club and the American Club will cancel war risk coverage for ships operating in Iranian waters, the Gulf and surrounding areas from Thursday. The move strips vessels of essential protection and forces carriers to seek expensive alternative cover or avoid the region entirely.
Container ships carry consumer goods, auto parts, electronics and food. Rerouting delays these shipments by weeks. Sailing around Africa absorbs roughly 2.5 million twenty-foot container units of global capacity-capacity the market cannot spare.
Jebel Ali Port Hit, Operations Disrupted
DP World temporarily suspended operations at Jebel Ali port in Dubai following a fire at one of its berths on March 1. Falling debris from aerial interception caused the blaze. The facility-the world’s busiest container port outside Asia-later confirmed all four terminals are operational, but the incident demonstrates the physical risk to critical infrastructure.
Jebel Ali Free Zone sprawls over nearly twice the area of Chicago’s O’Hare International Airport. The port serves as a crossroads for goods shipped from Asia to Africa, Europe and the US East Coast. Any extended ripples across global supply chains.
Air Cargo Networks Collapse
Air freight faces parallel crisis. FedEx suspended flights to and from Bahrain, Israel, Qatar, Saudi Arabia, Kuwait and the UAE. Qatar Airways Cargo temporarily halted operations due to Qatari airspace closure. 18% of global air freight capacity has been removed from the market, according to Flexport’s CEO.
The loss hits Asia-Europe and Middle East routes hardest. Air freight rates will climb as space tightens. Shippers face tough choices: accept delays or pay premium rates for shrinking capacity.
Trade Weaponisation Accelerates
The conflict follows US and Israeli military strikes on Iran on February 28, 2026. Iran retaliated with attacks targeting US interests in the UAE, Qatar and Bahrain. The escalation weaponises trade routes and infrastructure.
“The repercussions of the joint military operation by the US and Israel against Iran and subsequent retaliatory action will see the further weaponisation of trade and shatter hopes of a large-scale return of container shipping to the Red Sea in 2026.”
– Peter Sand, Chief Analyst at Xeneta
Peter Sand notes that ocean container services in the Persian Gulf continued unaffected despite military build-up-until strikes forced immediate withdrawals. Carriers hoped to resume Red Sea sailings in 2026. That prospect has evaporated.
Spot Rates Set to Surge
Lars Jensen, Vespucci Maritime chief executive, warns cargo owners to prepare for ripple effects. Rising spot rates will hit other major deep-sea trades as capacity constraints spread. Carriers avoiding both the Strait of Hormuz and Suez Canal must route around southern Africa-the longest, most expensive option.
Shippers booking Middle East cargo face compounding costs:
- War risk surcharges between $1,500 and $4,000 per container
- Extended transit times adding 10-14 days via Africa routing
- Tighter equipment availability as containers circle longer routes
- Rising spot rates across unaffected trades as capacity tightens globally
What Freight Forwarders Must Do Now
Independent forwarders face immediate pressure. Clients demand answers. Rates shift daily. Capacity evaporates without warning.
Speed matters. Quote complex routes fast. Compare carriers still operating viable lanes. Lock rates before surcharges escalate further. Track shipments in real time and keep clients informed as delays compound.
SME forwarders need tools that let them move first and fast. One screen to price, book and manage jobs. No tabs, no spreadsheets, no email chains. Multi-carrier comparison across A2A and D2D options. Instant access to vetted partners and live rates on alternative routes.
The Middle East corridor will remain volatile. Carriers that suspended services won’t resume until security improves and insurance cover returns. That timeline remains unknown.
Forwarders who adapt quickly-finding alternative routings, locking capacity on Africa lanes, managing client expectations with real-time updates-will protect margin and win cargo. Those who wait will watch rates climb and capacity vanish.
Plan for Extended
This crisis compounds over two years of Red Sea. Carriers already rerouted vessels to avoid Houthi attacks. Now the Persian Gulf closes too. The world’s two critical Middle East maritime chokepoints-Suez Canal and Strait of Hormuz-are effectively blocked for commercial shipping.
Global supply chains must absorb longer lead times, higher costs and persistent uncertainty. Consumer goods, electronics, auto parts and food shipments will arrive late and cost more. Inflation pressures return as transport costs spike.
Freight forwarders must prepare clients for extended, build contingency routings and secure capacity on alternative lanes before competitors do. The window to act is closing fast.
