GLOBAL TRADE ALERT

Middle East Conflict – Impact on Air & Sea Freight

Clarke Global Logistics (CGL) wishes to advise clients of disruptions to global supply chains resulting from the escalating conflict in the Middle East.  These events are having a pronounced impact on both sea and air trade routes, with direct consequences for shipping operations, transit times and freight costs.

Sea Freight Disruptions

The key issues affecting global sea freight is the closure of or restricted transit via The Strait of Hormuz – a critical global shipping corridor.  Vessels are diverting via the Cape of Good Hope, resulting in increased transit times (7-14+ days), higher fuel consumption and cargo insurance restrictions on high-risk routes.  These factors are placing upward pressure on sea freight rates, reducing available capacity across key trade lanes, creating longer delivery timelines and greater planning uncertainty on supply chains.

Air Freight Disruptions

Air cargo networks are also affected due to airspace restrictions and operational disruptions around major Middle Eastern hubs including Dubai and Doha.  Impacts include suspended or re-routed services, lower available cargo capacity on key lanes, longer flight paths, higher fuel costs and adjustments to insurance coverage terms.  Expect air freight rates to rise.

The team at Clarke Global Logistics are actively working with carriers and insurance partners to secure alternative routing solutions, protect cargo, and minimise supply chain disruption.

We encourage clients to review inventory planning and place bookings early where possible. For shipment-specific guidance, please contact us directly on +61 3 9854 3000, send an email to enquiry@clarkeglobal.com.au or directly to your account partner.  We will continue to provide updates as the situation evolves.