Ongoing regional developments continue to impact logistics networks across the Gulf region.
Restricted Middle East airspace and partially offline hubs have reduced available airfreight capacity, resulting in tighter space conditions, rising rates, increasing fuel surcharges, and longer transit times.
At the same time, the security situation is creating significant disruption to ocean freight services, with carriers implementing booking restrictions, service adjustments, deviations, and additional surcharges, while overall volumes remain impacted by limited acceptance and higher total landed cost.
This update outlines, in practical terms, what customers should know about the current situation and what to expect across both airfreight and ocean freight services. We will continue monitoring the situation closely and provide further updates as operational conditions evolve.
Air Freight Situation
1. Capacity Constraints
• Large portions of the Middle East airspace are closed or restricted and hubs (Dubai/Doha) are partially offline. This has resulted in a significant decrease in available capacity to/from the region.
• Globally there is a reduction of approximately 20%, and a decrease of 40% on key EU and Asia corridors. With less global lift, space tightens resulting in a seller’s market.
2. Rising Rates
• Airfreight rates rising, with some lanes up 70%. With ongoing reduced capacity, strong demand and spiking fuel costs, expect these rate levels to persist, even increase further.
3. Rising Fuel Surcharges (....)