Recent developments in the Middle East are beginning to impact global supply chains, with flow-on effects now being felt across various trade lanes.
The Gulf region plays a key role in connecting airfreight between Europe/UK and Australia. With some airports currently closed or operating at reduced capacity, much of this cargo is now being rerouted through Southeast Asia and China. This shift is expected to place additional pressure on available airfreight capacity and contribute to upward pressure on rates.
Ocean freight markets are also beginning to feel the effects, with many shipping lines suspending services to the Middle East. Carriers have also begun implementing emergency war-risk and fuel surcharges on neighbouring trade lanes.
Here in Australia, local transport companies are also reviewing and adjusting fuel levies to offset higher operating costs.
As the situation evolves, we suggest clients holding annual marine cargo insurance policies contact their insurance providers to confirm whether underwriters have introduced any policy amendments, cancellations, or provisional exclusion zones relating to the current conflict.
If you have any questions about whether the current situation may impact your business or an upcoming shipment, please reach out and our team will be happy to assist.
