The situation requires companies to react quickly and work closely with an experienced logistics partner.
Airspace closure has halted air cargo in the Middle East
The closure of Middle Eastern airspace has halted air cargo transport from, to and through the Middle East for the time being. The restrictions apply to all air cargo shipments as long as the airspace remains closed.
Key international hubs – Dubai International Airport (DXB), Abu Dhabi International Airport (AUH), Hamad International Airport (DOH) and Bahrain International Airport (BAH) – have suspended or significantly reduced their operations. Israel has also closed its airspace.
The situation directly affects airlines operating in the region, such as Qatar Airways, Emirates, Etihad Airways and Lufthansa Group. Several European, Asian and US airlines have made cancellations and reroutings.
Globally, this increases capacity pressure on alternative routes, especially in Asian traffic. The result is longer transit times, reduced availability of cargo capacity and possible increases in spot prices. In addition, rising crude oil prices are increasing fuel surcharges, which increases the overall cost of air cargo.
Sea freight challenges: Strait of Hormuz and Suez route practically closed
Strait of Hormuz
Commercial traffic through the Strait of Hormuz has practically been cut off. This prevents direct access to ports in the Persian Gulf, including the United Arab Emirates, Qatar, Kuwait, the east coast of Saudi Arabia and Iraq.
Suez Canal and Red Sea
Major shipping companies have suspended transit through the Suez Canal and routes through the Bab el-Mandeb Strait. Ships are being rerouted via the Cape of Good Hope, significantly extending transit times and tying up capacity for several weeks.
Eastern Mediterranean
Ports are still operating, but services to the Middle East, Indian Subcontinent and Red Sea routes are being cancelled and rescheduled. This is resulting in empty sailings, missed calls and congestion at transhipment hubs. Companies must prepare for longer delivery times, schedule changes, and price fluctuations.
Impact on companies
The current situation directly affects:
• Delivery times
• Contract and spot pricing
• Warehousing strategies and safety stocks
• Transportation costs (freight and fuel surcharges)
Proactive planning, alternative routings and strong partner market knowledge are now critical to remain competitive.
CHS - an experienced and reliable Finnish logistics partner even in exceptional situations.
CHS professionals can be relied on even in challenging conditions
Experience, networks and operational reliability are highlighted in exceptional situations.
CHS Air & Sea Oy is an experienced and solid Finnish expert in the forwarding and transportation industry. We are constantly monitoring the development of the situation in the Middle East and react quickly to changes.
Our CHS international logistics experts:
• Plan alternative routes proactively
• Negotiate capacity with multiple airlines and shipping companies
• Monitor shipment progress in real time
• Actively inform customers of changes
CHS does everything it can to ensure that our corporate customers' shipments travel safely and as smoothly as possible, despite challenging conditions.
For more information, please contact your CHS contact person.
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